Recently, the China Chain Store & Franchise Association (CCFA) and Love Analytics jointly hosted the 2021 China Shopping Center and Chain Brand Development Summit - Digital Intelligent Growth Thematic Summit was successfully held in Shanghai, at which He Hui, Vice President of Child Wang and CTO, brought us the "Exploration and Practice of Physical Retail Omni-channel in the Digital Age".
Mr. He Hui focused on the exploration and practice of the different development stages of informatization, digitalization, intelligence and platform ecology of The Child King Enterprise. He Hui pointed out that the information service is the internal process management and control of the enterprise, and in the stage of digitalization and intelligence, the main service object is no longer the employees inside the enterprise, but the customers and members outside the enterprise, emphasizing the creation of experience and satisfaction.
The following is the full transcript of the speech:
Hello everyone, I am He Hui, CTO of Child King, and I would like to share with you the exploration and feelings of Child King in digitalization in the past few years.
First of all, to introduce the child king, many colleagues may be a little strange to the child king, I joined in 2015, mainly responsible for technical products, these two years the child king in the digital development of the investment is relatively large.
Founded in 2009, Child King currently has the highest transaction volume in the retail chain of the mother and baby industry, and is the leader of the industry chain, with nearly 500 large-scale omni-channel digital stores with an average area of 3,000 square meters in the country. The store area is relatively large, mainly for the 0-3-year-old maternal and infant family population, 1/3 of the area is used for the operation of goods, such as FMCG milk powder, diapers, toys and other categories.
1/3 of the area is used for the establishment of playgrounds, as well as mom classes and classrooms, we hope that Bao Dad, Bao Mom with the baby, in addition to buying things, more of a social occasion. There are a variety of activities in the playground, such as children's koala classes, kangaroo classes, graffiti competitions, etc., as well as a variety of interactive activities. The remaining 1/3 of the area is to integrate cross-industry resources, such as English, early education these institutions, in our stores, children's growth, education content are one-stop provision.
From the beginning of the opening in 2009, we emphasized that the child King is a heavy membership system of the company, the company's founders define the company as a big data company that operates customer relations, into the store to buy things, need to do membership cards, the store manager from 2009 to know how to pull out the consumer member data from the ERP to analyze it; the text message sent by the store manager, very early on is thousands of faces, will be divided into whether to buy Wyeth or buy love he beauty or beauty, different people receive text messages are different.
In the store, whenever the user becomes a new member, if it is a member between pregnant women and 1-year-old babies, we will arrange full-time parenting consultants, in the past period of time are a one-child family, many people are novice parents, especially there are many problems in raising children, parenting consultants are the exclusive emotional sustenance of parents and mothers, and there are problems that can be found through online APP, WeChat, and corporate WeChat. The company also has clear requirements for childcare consultants, first of all, to obtain the qualification of nursery teacher issued by the Ministry of Labor, but also to pass through various types of skills assessment within the child king, during the key nodes such as the birth of members and the birthday of children, the parenting consultants will have clear active care actions.
Each store holds nearly 1,000 interactive activities every year, we define the store as a social center, all stores are opened in the commercial center, mainly choose a commercial center of more than 80,000 square meters, which is the focus of the middle class, the child king pursues not to sell more and more transaction volume, we pursue the single customer output value, that is, the deep management of members, which is our characteristic.
Child King from the beginning is a special focus on data and special attention to customer relations of the company, after several years of digital development, today child king online orders accounted for nearly 50%, later we will start to talk about what child king digital has done.
<h1 class="pgc-h-arrow-right" data-track="25" >01 Three stages of enterprise development</h1>
First, from the perspective of the CTO, the technical work is divided into several stages.
The first stage, the information stage.
What is informatization? The most important service target is the internal organization and department of the enterprise, is to improve the internal work efficiency as the main purpose, so more embodied in the internal management system, such as ERP, MRS, based on the traditional division of labor field, we particularly emphasize the ability, experience, process of business analysis in internal management, so more is the best business practices, through the best business practices, let the management system quickly scale, the original work after information, recorded into the computer, through a layer of summary, Give the manager budget and the actual comparison, let the manager see the difference actually achieved, corresponding to the action that occurs in a certain department and place, this is informatization, there are many standard manufacturers of informatization, the limelight of informatization in the past two years has come down, because a new era has arrived - digitalization.
The second stage, digitalization and intelligence.
The most important service object is no longer the internal employees of the enterprise, but the customers and members outside the enterprise, all of which are members and customer-centric, the internal process management and control emphasized by information services, and the digitalization emphasizes the experience and satisfaction, so the largest digital company is all the Internet companies today.
For example, today there is a demand for leisure and entertainment, there are people who have developed an online game online for everyone to play, and today there is a demand at home that does not want to come out to buy things, so there is Tmall, there is JD.com, and there is Taobao. When these systems are doing, they do not first think of how to keep accounts, how to design the process, how to do things, the first thing that comes to mind is how to solve the user's problem, how the user comes up to buy, how the user plays this thing, and then thinks about what should be on it, which is the biggest difference between digitalization and informatization.
When an enterprise turns the information team into a digital team, if there is no corresponding matching and transformation, it will be difficult for the team to adapt to this change. All enterprises should be an Internet enterprise after digitization, and the biggest difference between Internet companies and traditional enterprises is whether to use tools and technologies to meet the needs of members and users, enterprises no longer emphasize the process, but emphasize the ability to rely on new technologies to continuously iterate on the needs of enterprises to deliver user needs, which is also an iteration of the enterprise itself.
Today, many traditional enterprises have carried out digitalization, and do a good job, with the development of technology and large digital, we can aim at a new stage - intelligence, this is the stage with digitalization, and Jingdong, Tmall online shopping malls or an APP comparison, what are we missing? Tmall or Jingdong as soon as he logs on to the APP he knows who is coming, the big data behind it revolves around user computing, so behind the digital core is to be able to think about what you think according to the needs of users, anxious you are anxious, which is an important direction to be done in the next stage of digitalization.
The third stage is platformization and ecology.
Today, our focus is not just on one enterprise, we want to be omni-channel, full supply chain, all platform. How to deliver a better product from the time of user demand, from the source to the user, and even when the user has no demand, it predicts the user's needs and matches the products that meet the demand to the user, which is the future development direction of the retail chain industry. The future enterprise or or the third stage should be platform, ecology, how to break through the boundaries of an enterprise, is to provide value services of the ecological chain enterprises and value portfolio providers integrated together, better meet user needs, the formation of an ecology, the enterprise itself is a SaaS platform and services, the integration of all businesses and industry practitioners together, into a symbiotic, regenerative organization.
<h1 class="pgc-h-arrow-right" data-track="49" >02 The development of the child king</h1>
Child King is a company that pays great attention to data, 2009-2015 is the information stage, we purchased a large number of commercial software, the annual investment in IT is very huge, 2015 faced a major challenge, in 2014, 2015 the entire Internet industry to achieve the transformation of the PC to the mobile terminal, Jingdong, Tmall have also completed the mobile terminal transformation.
The company's operators feel great pressure, because the users of the child king have also changed, their contact with the world is not only in the physical channel, for example, we come out to eat will see the public reviews, buy things will see JD.com, Tmall, mother and baby also began to appear honey buds and Babe, this is a very big challenge, we need to create a new digital contact point in the Internet space that users contact, at that time we understand it as an APP, The biggest challenge of doing APP is the challenge of informatization to digital transformation, which used to be a traditional system, mainly offline stores, at that time, 70 or 80 stores, each store has a store ERP, the headquarters has a total ERP, is a centralized traditional structure, deploy ERP to solve distributed needs.
When we do online APP, the original commodity system, inventory system, need to dock to the APP, we built a relatively large Internet team, the ERP system is split, the technical team is big, as a CTO, the management is the complexity of the technology, how to solve this complexity?
Commodities, inventory, orders are very complex, we can cut a complex system into different independent systems, the system and the system through the interface of the dialogue, that is, Taobao, Tencent used distributed Internet system, and the original ERP technology system is completely different, but also completely different management methods and models. We built a team of 200 people at that time, the original team was completely upgraded, before we used a lot of commercial software, including world-class well-known software to do APP is also difficult, the child king also increased investment in this area, we built a distributed system, within the company has a user commodity inventory order system, the store's POS machine as the same system as the APP, so when we will understand the STORE POS machine as the same action as the APP plus shopping cart, we have the so-called Internet middle office, And these two years have been iterating on this middle office.
When there is such a middle office, we have done a lot of practice, in 2015 online APP, can sell goods online, when we both buy online, but also offline to buy members called omni-channel members, the output value of these members is pure offline members output value of 4 times, is pure online members 7 times, why is there such data? Because when there is no online channel, when members can't go to the store, they will hand over the transaction to competitors, such as Tmall and JD.com. When we have an APP, the member opens the APP, and part of the business is left to us. Implanting digital contacts in the life scenarios of members, finding you when members need them, and completing their needs are the very important starting points and philosophies of enterprise digitalization.
In 2016, we imagined the store as an APP, because arriving at the store is like logging into the APP, we want to know who is coming, we know who is coming, we can notify the parenting consultant, and we can also recommend the most suitable promotions for him in the store, and the products related to him. In 2016, the online and offline complete access, the entire store is understood as an APP, after arriving at the store, members can also use their own APP to add to their own shopping cart after seeing the goods, add to the shopping cart after the use of the Internet distributed system Has a new combination, you can pay by mobile phone, you can also pick up offline, you can also ask to send the goods to the parking lot after 2 hours, and you can also send the goods to the member's home through third-party express delivery. This is to change the experience of in-store customers in the scene through digital technology.
This is equivalent to the store manager are operating 2 stores at the same time, we have moved all the production factors in the store to the online, when the member can not go to the store, you can find this store through the APP, you can find the store manager online to register interactive activities, you can book a playground, you can buy goods online, you can buy goods through third-party express delivery or pick up goods in the store. The digitalization of The Kid King store has expanded the home service, providing more accurate and time-sensitive goods to the home service.
A digital store is the scene where we serve members, behind which is the operation system of the entire child king, and each scene is laid out through a lot of gameplay and experience points through the digital scene, making the experience of members to the store more convenient.
In 2017, we added a lot of large screens in the store, the big screen can interact with members, the process of interaction is the process of our service members, this is to grab red envelopes, cloud shelves and so on.
In 2018, we found new trends, everyone spent more and more time in WeChat, in 2018, all in WeChat ecology, we did small programs in WeChat and WeChat communities, and the small programs did fission play to help stores increase membership, including bargaining, group buying community sharing.
In 2019, the digitization of the child king has landed in many scenarios, and the next iteration direction is to better meet the needs of customers through data means and intelligent means, so there are mobile terminal tools in the back end of the child king, calling people and guests one, we have made a lot of tools, a tool is used for customer management, for example, in the store, parenting consultants can directly use the tool to issue coupons to members at any time.
The big data system recommends the members with the most transaction opportunities among the members managed by the employees every day to the employees, and the employees can operate these members through various ways through the enterprise WeChat, such as inviting them into the store, and then recommending the appropriate products to the members.
This year we began to migrate these tools to the enterprise WeChat, enterprise WeChat to solve a pain point is to be able to make direct calls with WeChat customers, including the store manager's business tools, credit authorization and so on. We have summarized the four elements of business in digitalization – scenario, relationship, content, and digitalization.
The first element is the scene, we start from the members, in the end how many scenes need our services, the most important thing in the scene is to establish contact and relationship with the members, this relationship must serve his content, and finally digitization is a carrier, so we split a lot of member scenes, one is to take the child to the store on the weekend to shop, there is a 3,000 square meters of shopping mall to meet his scene, the child king will have parenting consultants and store service personnel to serve, when the member arrives at the store, It will provide content to members through the playgrounds and classes in the store, and ultimately digitally make the user experience better.
When members do not go to the store, we will have APP, Mini Program, community in a variety of activities, contact with members, through PUSH members, let members generate demand to open the APP, APP will recommend the most needed goods for members, to meet the requirements, these contents will continue to increase, digital in this is a carrier, this is a simple summary of digitalization.
<h1 class="pgc-h-arrow-right" data-track="88" >03 The child king builds a new ecology of wisdom</h1>
In the past, enterprise digitalization was understood as technical work, but now in the era of user dominance, what is the role of enterprises? It is around the user to provide the ability to meet his needs, today's surviving enterprises who can better meet the needs of users, who can survive for a long time. Driven by digitalization, enterprises continue to adjust and change, so that enterprises to establish the ability to meet user needs, user experience is getting better and better, enterprise efficiency is getting higher and higher, this may be the root of the enterprise, we are no longer talking about an enterprise digital work, but how to better meet the needs of a digital enterprise, which should be a very important starting point for enterprises, including retail chains.
Child King such a company has been constantly meeting the needs of users, but also obviously feel that the beginning to encounter bottlenecks, the physical retail industry is constantly being harvested by Internet companies, for example, a member to my store to experience interactive activities, play my playground, and my parenting consultant also communicated, also very satisfied, just looked at the shelf of so-and-so milk powder, did not buy, went home to buy on Jingdong or Tmall.
User experience is in the store, but the transaction is online, user experience and user transactions can be separated, because the user has a perception of the brand, the brand remains in the retail channel is the difference in the price difference, all retail channels are facing such a challenge, all retail channels are the first position of brand marketing, and our channels for the brand, at the entire platform level, in the ecology to redefine the rules. Retail chain enterprises are also facing upgrades, not just limited to the role of serving members to move boxes, we want to become a channel, platform, ecology.
In the past few years, The Child King has been exploring that a large number of online member traffic in addition to the demand for existing maternal and infant products, there are many new family product demand, such as kitchen, fruit, fresh food, etc., which can be sold to them online. In addition to physical goods, The Child King introduces services such as sister-in-law and early education to the platform to recommend to members.
In addition, the service to the B-end merchants should also be continuously enhanced, including brand owners, in the past in the child king to do business business has a lot of factors that need to be controlled, and now is constantly opening up these factors, so that all merchants to the child king to do business has become very simple, through the online platform can sign contracts, abide by the rules, shelves goods, you can go to the child king platform for membership management, there are a lot of member business tools support, you can also learn to operate through the business university, let the child king is no longer a seller, It is a service platform, a platform that meets a category of people. Let more merchants and merchants and individual workers with service capabilities participate in the platform and better serve members, and the digital work of Child King has become how to promote and realize such a platform and ecology.
In the past, Kid King has established a platform with three terminals, including PCs, mobile terminals, and platforms on public accounts.
The future of retail enterprises is a platform, the bottom of the platform is digital, one end is the member, the platform should meet the various needs of members in different scenarios, and the other end should be good brand owners, merchants and industry-related practitioners, such as parenting consultants, maternal and infant technicians, etc., so that they can efficiently serve members on the platform. Then through the platform to develop various standards, efficient rule system, and finally break the individual boundary, the formation of the future maternal and infant wisdom of the new ecology.
Child King is the power of science and technology + humanized service, to make every childhood better, thank you!