Global Trends and Corporate Strategies in Omnichannel: June 2021

GLOBAL TRENDS AND CORPORATE STRATEGIES IN
OMNICHANNEL
June 2021
Introduction
Omnichannel Trends
Company Profiles
Looking Ahead
INTRODUCTION
About this briefing
▪ In the wake of the coronavirus (COVID-19) pandemic, this briefing looks at global Disclaimer
trends and corporate strategies in omnichannel through the lens of 10 specific Much of the information in this briefing
is of a statistical nature and, while
retailers, all of which have made omnichannel a central pillar of their corporate every attempt has been made to
identities. ensure accuracy and reliability,
Euromonitor International cannot be
▪ “Omnichannel” is defined as a specific form of multichannel strategy, where held responsible for omissions or
errors.
retailers attempt to unite store-based and internet-based shopping. It Figures in tables and analyses are
encompasses all channels managed by the retailer, including retail stores, online calculated from unrounded data and
may not sum. Analyses found in the
stores, mobile stores, mobile app stores, and any other method of transacting with briefings may not totally reflect the
a customer. Emphasis is put on providing the customer with a seamless shopping companies’ opinions, reader discretion
is advised.
experience, regardless of where it starts and ends.
▪ Unless stated otherwise, all historic values expressed in this report are in US The global retailing landscape is
dollar terms, using year-on-year exchange rates. All forecast data use 2020 fixed evolving quickly with the rise of
exchange rates. All historic data are expressed in current terms; inflationary omnichannel retailing, and retailers
worldwide are constantly
effects are taken into account. experimenting with new concepts
and formats. This briefing explores
▪ Report closing date: 25 May 2021 global trends and corporate
strategies in omnichannel.
▪ Discussions with our clients are a key part of our research. We welcome the
chance to continue the conversation. Author details can be found at the end of the
report.
▪ Euromonitor International has also explored global trends and corporate
strategies in private label and e-commerce marketplaces. This content can be
found in our “Global Trends and Corporate Strategies in Private Label” and
“Global Trends and Corporate Strategies in Marketplaces” briefings, respectively.
© Euromonitor International RETAILING: GLOBAL TRENDS AND CORPORATE STRATEGIES IN OMNICHANNEL PASSPORT 3
INTRODUCTION
Key findings
Importance of click-and- Companies need to understand and adapt to consumers’ current and future needs by
collect in the pandemic focusing on what they want and how they want to shop. Click-and-collect services
turned from a convenience into a necessity almost overnight due to COVID-19 and
will likely permanently change the way consumers shop.
Data are key to The personalisation trend was already brewing pre-pandemic, but COVID-19 acted as
personalisation a catalyst to further fuel the personalisation trend. Companies are dissecting billions
of datapoints to translate these insights into recommendations that are adapted to the
consumer’s preferences and needs.
Creating a Companies need to create an all-inclusive “one view” of the consumer that is user-
comprehensive “one friendly and offers a seamless shopping experience. If this is not set up properly, it
view” of the consumer is will be disorganised and erratic, resulting in lower basket sizes and poorer
the future conversions.
Online sales to drive E-commerce is expected to generate more than half of the absolute value growth in
future retail industry the global retail industry by 2025. Companies looking to succeed in the e-commerce
growth space need to tackle the current pain-points by addressing logistics, fulfilment, last-
mile delivery and collection, as well as the personalisation trend.
Companies need to Successful manufacturers and retailers will be able to effectively implement logistics,
address all stages of the fulfilment, last-mile delivery and collection and personalisation by exploring digital
shopping journey to experiences and working out how to allow their audience to use all available channels
offer a seamless at any point of the shopping journey.
omnichannel experience
INTRODUCTION
Why read this report?
▪ The global retailing landscape is evolving quickly with the rise of omnichannel retailing, and retailers
worldwide are constantly experimenting with new concepts and formats. There is a consensus among retailers
and brands that consumers purchase more with a retailer when they shop through multiple channels than
when they only utilise a single channel. Although some of these experiments will fail, others will help lay the
groundwork for the future of the industry.
▪ For this reason, Euromonitor International is profiling the biggest and most innovative omnichannel concepts
in retailing. These profiles showcase a variety of retail channels – including grocery, non-grocery, non-store and
digital – and highlight the importance of the concept of omnichannel retailing, in which technology is being
leveraged to create new business models and shopping experiences.
SOCIAL MEDIA STORE
MAIL MOBILE
CATALOGUE DESKTOP/TABLET
INTRODUCTION
Companies profiled in this report (1)
Headquarters 2019 Sales (retail

Company Brands Regional Presence
Market RSP ex VAT USD)
Best Buy, Geek United States,

Best Buy United States USD41.5 billion
Squad Canada, Mexico
United Kingdom,
Norway, Ireland,
Boots UK Boots United Kingdom USD10.4 billion
Netherlands, Italy,
Thailand
Freshippo,
Freshippo Freshippo X, China China USD2.6 billion
Freshippo Mini
ICA Supermarket, Sweden, Latvia,

ICA Sverige Rimi Baltic, Apotek Sweden Norway, Lithuania, USD9.8 billion
Hjärtat, Hemtex Estonia
LVMH Moët
Hennessy Louis 75 brands globally France Global USD20.0 billion
Vuitton
INTRODUCTION
Companies profiled in this report (2)
Headquarters 2019 Sales (retail

Company Brands Regional Presence
Market RSP ex VAT USD)
Magazine Luiza,
Magazine Luiza Brazil Brazil USD4.8 billion
Netshoes
Nordstrom,
HauteLook, Last
United States,
Nordstrom Chance, Nordstrom United States USD15.1 billion
Canada
Local, Nordstrom
Rack, Trunk Club
Pomelo Fashion Pomelo Fashion Thailand Thailand, Singapore USD13.2 million
Woolworths Woolworths,
Australia Australia USD28.4 billion
Supermarket Woolworths Metro
Singapore,
Indonesia, Malaysia,
Zalora Zalora Singapore Philippines, Brunei, USD686.0 million
Taiwan, Hong Kong,
Macau
Introduction
Omnichannel Trends
Company Profiles
Looking Ahead
OMNICHANNEL TRENDS
Omnichannel today (overview)
▪ Omnichannel retailing refers to the use of multiple distribution channels in the physical and digital space to
create a cohesive and seamless experience for any global consumers on any platform, at any time. When this is
performed effectively, consumers are able to move freely from one channel to the next, building a relationship
that improves the overall buying experience and encourages brand loyalty.
▪ The global retailing landscape is evolving rapidly with the rise of omnichannel retailing, and shoppers
increasingly value convenience when shopping. Most businesses today are already using multiple platforms and
channels for sales. Brands are spread across websites, social media, print catalogues and bricks and mortar
stores. However, this is not enough, as having consistency and continuity is key to providing a successful
omnichannel experience. In today’s retailing environment, omnichannel is more than just a buzzword. Offering
multichannel distribution, marketing and customer service gives customers a fully integrated, unified and
seamless experience, regardless of where it starts and ends.
▪ In this briefing we have identified three main trends that increased rapidly in 2020. We expect that retailers’
further development of these trends will help the average consumer to be able to initiate a shopping experience
that is not only seamless, but also convenient and personalised.
Mobility and order Personalisation across Logistics and

collection channels fulfilment
OMNICHANNEL TRENDS
Trend 1: Mobility and order collection
▪ COVID-19 has brought about significant growth in e- Global E-commerce Growth – 2019 to 2020
commerce. In 2020, global e-commerce retail value sales
increased by almost 27% to USD2.5 trillion. While only
3% of products were bought online in 2010, this reached
16% in 2020, on the back of the pandemic. Apparel and Footwear: Beauty and Personal
Total: 26.9%
20.7% Care: 23.8%
▪ Click-and-collect has been a growing trend in the last
five years, as consumers have found they enjoy the
convenience and cost-savings of shopping online and
subsequently picking up their order on the way home Consumer Appliances: Consumer Electronics: Consumer Health:
30.1% 22.9% 28.7%
from work or while running errands.
▪ COVID-19 turned this behaviour from a convenience
into a necessity almost overnight. Retailers were not
Food and Drinks: Home Improvement
only furiously expanding their logistics network 52.0%
Home Care: 45.9%
and Gardening: 25.6%
capacity, but also trying to keep up with the high
demand for delivery. Click-and-collect – and particularly
curbside pick-up – helped plug the gap for consumers. Homewares and Home Personal Accessories
Media Products: 13.0%
▪ Despite the uptick of click-and-collect options, only 22% Furnishings: 22.0% and Eyewear: 10.0%
of global connected consumers viewed it as an important

delivery feature, according to Euromonitor’s Digital
Consumer survey. While consumer interest in such Pet Care: 47.2%
Traditional Toys and Video Games
Games: 20.2% Hardware: 30.0%
services saw the greatest jump in countries such as
Sweden and India, it declined in places like Australia and
Russia, and interest remained stagnant in the US. Source: Euromonitor International Retailing 2021 edition
OMNICHANNEL TRENDS
Trend 2: Personalisation across channels
▪ While consumers now have more choices than ever before, the sheer number
of options can make it difficult to make purchasing decisions. Brands and
retailers need to find more personal ways to connect their customers to the
products they want. Despite increased privacy concerns, only 23% said they Personalisation
would not be willing to share any personal information with retailers, hotels
or restaurants, according to the Voice of the Consumer: Digital Survey 2021.
▪ The personalisation trend was already brewing pre-pandemic. Strategic
promotions and pricing were not as effective as they used to be and were Showrooming
easily replicated by competitors. Retailers were already exploring ways to
offer personalised approaches in all touchpoints of the shopping journey.
▪ As a result of the pandemic, the e-commerce boom further highlighted the Loyalty programmes
importance of personalisation as a trend. As more consumers are conducting
their shopping online, this gives all types of players greater access to more Seasonal shopping events
data. Brand manufacturers and retailers have now embraced personalisation
strategies by sieving through these billions of datapoints to translate these
insights into recommendations that are adapted to the consumer’s Curated points-of-sale
preferences and needs.
▪ When executed well, personalisation strategies can be the bridge between On-site promotions
in-store shopping and e-commerce. Personalisation can help to create
meaningful connections with consumers at a time when they are looking for
trusted advisors. This allows a more specialised, relevant and satisfying Push notifications
shopping experience for each and every one of them.
OMNICHANNEL TRENDS
Trend 3: Logistics and fulfilment
▪ The popularity of e-commerce is not expected to diminish Top Five Challenges Faced with
following the pandemic. Consumers now are increasingly Delivery
shopping online, and this drastic change in purchasing
behaviour has placed pressure on retailers’ logistics and
Longer than estimated wait
fulfilment capabilities. According to Euromonitor’s Digital for delivery
Consumer Survey 2021, more than 42% of survey
respondents believe that longer than estimated wait for
delivery is the biggest challenge faced when shopping online. Damage to content or
The logistics and fulfilment capabilities of warehouses packaging
increased significantly in recent years, but they are still

unable to keep up.
Unable to schedule a delivery
▪ Brand manufacturers and retailers are scrambling to keep up for a convenient time
with demand and become more efficient. They have been
leveraging their existing physical presence by using their
store networks as collection points to help reduce delivery Receiving incorrect products
times and logistics costs. Yet, this is still not enough.
▪ The pandemic has given us an indication of what the future of
e-commerce could be, but it has also focused consumers’ Poor customer service when
attention and scrutiny on retailers’ ability to improve and delivery goes wrong
invest in e-commerce-friendly logistics and fulfilment
networks that are not only dependable, but also cost-effective 0% 10% 20% 30% 40% 50%
and efficient. This will help to facilitate reliable delivery Online respondents
systems to deal with the growing volume of deliveries. Source: Euromonitor International Digital Consumer Survey 2021
Introduction
Omnichannel Trends
Company Profiles
Looking Ahead
COMPANY PROFILES
Best Buy: Key company facts
▪ Best Buy operates in North America, with retail Best Buy: Sales by Channel, 2017-2020
locations in the US, Canada and Mexico. It 45,000
previously operated in China and Europe, but closed
those locations in the early 2010s. 40,000
▪ Best Buy is known as a legacy retailer that has
successfully adapted to modern retailing. Following 35,000
years of losses after the Global Financial Crisis, now-
former CEO Hubert Joly took control in 2012. Under 30,000
Joly, revenue increased every year from 2014-2019.
▪ Click-and-collect has been Best Buy’s most 25,000
USD million
important initiative in recent years. The programme
was launched in 2015 and accounted for more than 20,000
40% of Best Buy’s online sales in 2019.

15,000
▪ Best Buy excels at customer service. Before Joly’s
leadership, many customers browsed its products
10,000
in-store but then actually purchased the products
on Amazon. Joly instituted a price-match policy and
increased training for store employees. Staff 5,000
knowledge about different products now brings

shoppers into Best Buy’s stores, and the price- 0
2017 2018 2019 2020
match policy encourages shoppers to make their
Electronics and Appliance Specialist Retailers E-Commerce
purchases in-store.
Source: Euromonitor Passport, Retailing 2021 edition
COMPANY PROFILES
Best Buy’s omnichannel investments
▪ Best Buy began to adopt omnichannel strategies when Hubert Joly took control of the company in 2012. Early
moves, like creating a real-time in-store inventory filter, began to merge Best Buy’s online and in-store
experiences. The retailer made significant strides in the following years and is now known as an omnichannel
leader.
▪ Best Buy has used outside partnerships to expand its omnichannel offerings. It allows manufacturers such as
Samsung and Microsoft to create boutiques in its stores, providing specialised customer service and turning
Best Buy’s stores into combined retail and service centres. Especially for consumers who are unfamiliar with
how to use new technologies, these offerings create strong customer relationships that protect Best Buy from
retailers such as Amazon and Walmart.
▪ COVID-19 pushed Best Buy to invest further in omnichannel retailing. It is expanding its already popular click-
and-collect options and its ship-from-store model. This expansion is allowing Best Buy to capitalise on
consumers’ shift to e-commerce, while still making use of its expansive footprint of physical stores.
Key Initiatives in Omnichannel for Best Buy

Development Context
Click-and-collect Click-and-collect gives consumers rapid delivery with the security they require for
high-priced purchases. It has made Best Buy an e-commerce leader.
In-store boutiques These boutiques have turned Best Buy’s stores into showrooms and give Best Buy
unique customer service opportunities not offered by its competitors.
Ship-from-store hub Ship-from-store hubs demonstrate a permanent shift in how Best Buy uses its
model physical stores, reducing shipping times and making it more competitive online.
COMPANY PROFILES
Best Buy’s omnichannel strategy in context
Mobility and order collection Personalisation across channels
▪ Best Buy has undertaken a significant remodelling of ▪ Best Buy put personalised customer relationships at
its logistics in line with its omnichannel strategy. the heart of its growth model in 2017, with its
Best Buy had offered click-and-collect before the “Building the New Blue” and “Building the New Blue,
pandemic, but it announced in early March 2020 that Chapter Two” strategies. These strategies peg the
it would close its stores and only allow customers to pairing of services with Best Buy’s retail goods as key
pick up orders from their vehicles. The convenience to the retailer’s continued growth. For example, Best
of kerbside pick-up was significant for Best Buy and Buy launched its Total Tech Support programme to
significantly reduced the negative impact of COVID- create lasting relationships with its customers that
19 on its sales. will drive future sales. For an annual fee of USD200,
▪ Best Buy has also reduced online order delivery the Total Tech Support programme gives Best Buy
times by shipping orders from its stores instead of customers access to tech support for any product in
only from warehouses. Best Buy undertook this their home, no matter where they bought it.
strategy to shorten its delivery times and remain ▪ Best Buy has also personalised the shopping
competitive with Amazon and other e-commerce experience by investing in store-within-store
retailers. This policy has proved so successful that boutiques. Instead of traditional aisles of products,
Corie Barry, the CEO since June 2019, announced in Best Buy allows companies to create their own
August 2020 that the retailer would turn about a boutiques within Best Buy stores. These stores give
quarter of its stores into ship-from-store hubs with Best Buy shoppers a unique opportunity to explore
higher order processing capabilities. their favourite brands while getting expert advice on
that boutique’s products.
COMPANY PROFILES
Boots UK: Key company facts
▪ Boots UK is a leading pharmacy-led health and Boots UK: Retail Value Sales (excl. VAT) per
beauty specialist retailer operating in the UK, Channel, 2020
with a primary focus on selling pharmaceuticals,
including prescribed medicines, and providing
healthcare services, working closely with the Drugstores/Parapharmacies
National Healthcare Service in the UK.
▪ The company also has a significant general
merchandise section offering toiletries, beauty
and consumer health products, including over- Chemists/Pharmacies
the-counter (OTC) medicines.
▪ In many markets, including the UK, Boots
differentiates itself by its strong omnichannel
presence and the offer of exclusive brands, such
Opticians
as No7, owned by the parent company.
▪ Boots operates stores in the UK across various
retail channels, such as pharmacies, drugstores
and opticians, as well as online via boots.com.
E-Commerce
▪ In the UK, Boots leads the health and beauty
specialist retailers channel, accounting for 40%
of retail value sales in 2020. 0% 20% 40% 60% 80%
Total retail value sales
COMPANY PROFILES
Boots UK’s omnichannel investments
▪ In recent years, it has been a fundamental strategic objective of Boots to grow its in-store offers and
experiences to engage with customers across various channels, such as in-store, online and social media.
▪ To facilitate integration, various internal and external efforts have been made. For example, the company has
been successfully blurring the line between sales channels by enabling ordering on boots.com for collection in-
store.
▪ In addition, to deliver an enhanced digital shopping experience in-store, Boots rolled out a Sales Assist app in
its stores in collaboration with IBM and Apple in 2016. iPads allow customer assistants to check inventory
online, review products and make recommendations, as well as to place orders for customers for home
delivery.
▪ Boots engages with its customers on various online channels, including the mobile-optimised boots.com, and
social media platforms such as Facebook, Twitter and Instagram, where followers are informed about the latest
offers and events. Boots also operates its own mobile app, which includes the digital Boots Advantage Card,
providing customers with personalised offers.
Key Initiatives in Omnichannel for Boots UK
Development Context
In-store Sales Assist The app enhances the in-store customer experience and enables a more personalised
app experience by giving online access to the full Boots product range in every store.
Digital Boots Integrating the Boots Advantage Card as part of the Boots mobile app allows advanced
Advantage Card analysis of customer behaviour and provides more tailored and personalised offers.
Collaborative robots The use of robots increases productivity and maximises capacity in warehouses, thus
boosting sales by enabling the acceptance of a higher number of online orders.
COMPANY PROFILES
Boots UK’s omnichannel strategy in context
Logistics and fulfilment Personalisation across channels
▪ Boots has been engaging with the adaptation of ▪ Personalisation of offers across various channels is
logistics and fulfilment to support its omnichannel at the forefront of Boots’s omnichannel strategy. The
strategy. As customers shifted towards digital Boots Advantage Card loyalty scheme, which is
channels, Boots invested in doubling its online integrated into the company’s mobile app, is an
ordering capacity during the pandemic, which also essential part of the personalisation process.
required quick changes in logistics. Opening two Customers’ use of the Boots Advantage Card allows
micro-fulfilment centres and almost 30 hyper stores, the company to understand their shopping habits.
as well as hiring new staff for warehouses and to Thus, Boots can offer a more rewarding shopping
deliver goods, facilitated the adoption of its new experience through tailored offers.
strategic focus. ▪ The programme, which had some 11 million active
▪ The application of advanced technologies, such as members in 2020, offers one of the highest monetary
collaborative robots at its main warehouse, made the nominal values in the UK – four loyalty points
company engage more efficiently with the trend than received per GBP1 spent at purchase for later
any competitors. “Cobots”, which were trialled over redemption. The favourable reward scheme and
Cyber Week in 2019, increased productivity and cross-channel applicability makes the scheme
enabled the rapid fulfilment of more orders. appealing to customers and differentiates Boots from
▪ As Walgreens started testing drone delivery in the its competitors.
US in 2019, further initiatives are also expected in ▪ Analysis of customer behaviour and shopping
the UK at other stages of the fulfilment process. patterns enables Boots to make informed
omnichannel decisions and build an efficient
operational model.
COMPANY PROFILES
Freshippo: Key company facts
▪ Since its launch in 2016, Freshippo has Freshippo: Outlet Numbers 2017-2020
brought grocery shopping into the digital era,
400
and has soared in popularity among Chinese
consumers, thanks to its mobile-first shopping
experience, 30-minute delivery option, and a 350
vast selection of products, including live
seafood and cook-in-store options. In less than 300
five years, Freshippo has expanded rapidly,
with more than 350 stores in 2020.
250
▪ To reach a broader range of consumers,
Outlet numbers
Freshippo has been experimenting with new
store formats that cater to different needs 200
across the country. While the original

supermarket concept remains at the heart of 150
most Freshippo locations, the chain has added
new shopping experiences to its portfolio. It
100
recently launched Freshippo Mini, a smaller
format catering to rising consumption in
lower-tier markets, and Freshippo X, a 50
membership-only warehouse club competing
with Costco and Sam's Club, catering to the 0
increasing middle-class in China. 2017 2018 2019 2020
COMPANY PROFILES
Freshippo’s omnichannel investments
▪ At its initial launch, Freshippo was positioned as the pioneer of Alibaba’s New Retail strategy, aiming to offer a
seamless blend of online and offline shopping experiences.
▪ Freshippo relies heavily on its mobile app to connect online and offline. In-store, consumers can use the app to
scan items to research the products, see ratings and reviews, and make payments. At home, consumers can use
the app to schedule delivery and track orders. Each purchase and users’ browsing history are logged by the app,
which in turn helps provide personalised suggestions.
▪ By the end of 2020, Freshippo had over 350 stores covering 24 cities in China. The company believes physical
stores remain essential to its omnichannel strategy, as consumers visiting offline stores will gain more
confidence to shop online. In addition, each offline store acts as a full distribution centre. Bags of goods are
carried on conveyor belts running along the ceiling to the packing room for final delivery without disrupting the
flow of foot traffic in-store. Consumers who have seen this process themselves tend to have more trust in
Freshippo’s delivered goods.
Key Initiatives in Omnichannel for Freshippo
Development Context
The Freshippo app is the core of its mobile-centric shopping experience. Consumers can
Freshippo app
use it to make purchases in-store and schedule a delivery at home.
Freshippo’s own Instead of relying on third-party delivery services, Freshippo has built its own logistics
logistics system system that guarantees free 30-minute delivery within a 3km radius.
Launching flagship By setting up online stores on Tmall, Freshippo is able to reach Tmall’s over 700 million
portal on Tmall users, regardless of their location, bringing a wider shopper base.
COMPANY PROFILES
Freshippo’s omnichannel strategy in context
▪ Unlike other traditional grocery retailers, which ▪ All consumer activities with Freshippo are managed
often rely on third-party hyperlocal delivery via Freshippo’s mobile app, from making product
platforms, such as Eleme and Meituan, Freshippo has enquiries to placing orders and checking out. The
invested in its own logistics capabilities. Freshippo account is also linked with consumers’
▪ Consumers who place orders via Freshippo’s mobile Taobao/Alipay account, which includes the
app can receive free home delivery within 30 customer’s phone number, products of interest,
minutes if the store is within a 3km radius. In-store, payment activity and home address, which are
shoppers can also receive free delivery by scanning logged on the Alibaba ecosystem. The company can
the products’ bar codes and checking out via the app leverage the large amount of data it holds to make
virtually. They can also track the location of the personalised product recommendations.
delivery rider via the app. ▪ Digitalisation of the entire shopping process also
▪ For products not available in-store, consumers can allows Freshippo to employ a smart supply chain
place an order on Freshippo’s Cloud Supermarket, management system. The large amount of consumer
which guarantees next-day delivery from a remote behaviour data held enables Freshippo to predict
warehouse. consumer demand and adjust its inventory balance
daily, so consumers seldom encounter the situation
▪ Building its own logistics system could be costly, but
that their favourite products are out of stock.
is more reliable. With geographic data all logged in
Freshippo can also reduce waste from unsold
Freshippo’s mobile app, the company can use
inventory.
machine algorithms to plan delivery routes more
efficiently.
COMPANY PROFILES
ICA Sverige: Key company facts
▪ ICA Sverige, a subsidiary of ICA Gruppen AB, ICA Sverige: Sales by Channel 2016-2020
started its operations in 1938 in Sweden. The 14,000
group of companies includes: ICA Supermarket
and Rimi Baltic, which operate in grocery retailing;
Apotek Hjärtat, which covers its pharmacy 12,000
operations; ICA Real Estate, which owns and

manages properties; ICA Banken, which offers
10,000
financial services; and Hemtex, a homewares and
home furnishings chain.
▪ ICA has been a successful business in the past due 8,000
USD million
to local market knowledge and vast industry
expertise. Among the core values of the company
6,000
are entrepreneurship and sustainability. The
company tries to find new ways of securing
customer loyalty using digital channels. ICA is also 4,000
keen on improving its operational efficiency by
optimising business processes and introducing
2,000
automation.
▪ ICA’s customer base is the general public, as the
company operates a very extensive network of 0
outlets in Sweden and is positioned as a 2016 2017 2018 2019 2020
mainstream grocery retailer. Convenience Stores Supermarkets Hypermarkets E-Commerce

COMPANY PROFILES
ICA Sverige’s omnichannel investments
▪ ICA Sverige started 2020 with a good level of preparedness for omnichannel retailing. The company was
continuously developing its e-commerce offerings, while making significant investments in IT and logistics in
order to deliver fast, efficient deliveries at low cost. Process automation was among key focus areas for the
company. Key projects in this area include the adoption of an e-commerce tech platform called Ocado and the
launch of highly automated order fulfilment facilitates in Stockholm and Gothenburg.
▪ A long-term commitment to omnichannel investments in pre-pandemic times helped ICA perform exceptionally
well in 2020. According to the company’s quarterly report (Q3 2020), its omnichannel sales saw triple-digit
growth above the average level of the Swedish grocery market. 3% of the company’s total sales are now
generated by the online channel.
Key Initiatives in Omnichannel for ICA Sverige

Development Context
ICAx Launched in 2017, the innovation hub ICAx helps the company to develop and test
innovative concepts in e-commerce and beyond.
Tech partnership with The Ocado platform has helped ICA optimise delivery processes and design an
Ocado automated warehouse.
Stammis The company’s new loyalty programme is helping gather in-depth consumer insight.
COMPANY PROFILES
ICA Sverige’s omnichannel strategy in context
▪ Being among the largest retailers in Sweden, ICA ▪ ICA Sverige is pursuing personalisation efforts in
Sverige aims to offer good geographical coverage for order to secure loyalty and become more relevant to
delivery of online orders. According to company data, consumers. The company’s new loyalty programme,
a total of 349 ICA stores sell online, which helps called Stammis (launched in 2020), is a success: it
cover about 85% of the Swedish population. By exceeded 5 million participating customers in 2020.
European standards, Sweden is a large and sparsely The Stammis mobile app has been well-received by
populated country – this is especially true of the consumers due to its ease of use and unique features.
northern part of Sweden. For this reason, the These not only include the bonus programme itself,
company uses a mix of click-and-collect and home but also payment function, tracking of grocery
delivery. Home delivery is most popular in country’s expenses by category, and even tracking of the
major metropolitan areas, where consumers highly carbon footprint generated by shopping at ICA
value the speed and convenience of delivery due to stores. The latter feature is particularly relevant in
fast-paced lifestyles. In more remote locations, the current situation, when Swedish consumers are
consumers prefer click-and-collect. keen to reduce their personal environmental
▪ In the future, ICA must implement innovative last- footprint.
mile delivery solutions to retain its leading position ▪ ICA’s commitment to personalisation is supported by
in Swedish grocery e-commerce. Partnering with strategic investment in technology. As stated in the
tech companies or third-party delivery services could company’s 2018 report, ICA uses big data and
bring ICA groceries closer to consumers’ homes. advanced analytics tools for customer relationship
management, personalisation and digital marketing.
COMPANY PROFILES
LVMH Moët Hennessy Louis Vuitton: Key company facts
▪ LVMH Moët Hennessy Louis Vuitton is the world’s LVMH: Moët Hennessy Louis Vuitton:
leading luxury goods conglomerate, comprising 75 Financial Performance 2017-2020
brands as of 2020. It acquired Tiffany & Co in January 5,800
2021, for USD15.8 billion. The company continues to
expand by adding brands to its portfolio, such as Fenty
5,600
Beauty by Rihanna and Volcan De Mi Tierra in 2017,
and Fenty (luxury fashion) in 2019.
5,400
▪ Well-known for its brands such as Louis Vuitton and
Dior, it has a presence in 70+ countries, 4,900+ stores
and an online presence. LVMH’s business group is 5,200
divided into six areas: Wines & Spirits; Fashion &
USD million
Leather Goods; Perfumes & Cosmetics; Watches & 5,000
Jewellery; Selective Retailing, like Sephora; and other
activities, like Groupe Les Echoes news publication.
4,800
▪ COVID-19 negatively impacted the company, along
with the luxury industry overall, in the first and second
4,600
quarters of 2020, with a double-digit decline in sales.
As strict lockdowns lifted in the third quarter, there
were signs of recovery. 4,400
▪ The online presence of the conglomerate’s brands has
been increasing, and saw a further boost during 4,200
COVID-19, as the company sought to adopt a futuristic 2017 2018 2019 2020
omnichannel approach. Source: LVMH Financial Report
COMPANY PROFILES
LVMH’s omnichannel investments
▪ While luxury goods brands have historically resisted going online, LVMH Moët Hennessy Louis Vuitton hired
former Apple executive Ian Rogers as Chief Digital Officer in 2015 to build its brands’ online presence. In 2017,
LVMH generated online sales of 5% of overall group revenue. It started its e-commerce portal named 24 Sèvres
in 2017. Its brand Sephora rolled out the “New Sephora Experience” connected store concept featuring the
Beauty Hub concept the same year. In 2020, the share of online sales was 15%, and at more than 20% in its
Selective Retailing and Perfumes & Cosmetics divisions, according to the company.
▪ In 2019, its online presence was expanded through its various brands globally, and e-commerce sales were
boosted further in 2020, as the COVID-19 pandemic caused temporary store closures owing to lockdowns.
Regional online store expansions continued. Effective 20 January 2020, LVMH hired a Chief Omnichannel
officer, as the Chief Digital Officer moved towards an advisory role. The aim is to create a seamless and
enhanced customer experience, merging digital and in-store experiences.
Key Initiatives in Omnichannel for LVMH
Development Context
Fenty.com, Rihanna’s Fenty Beauty partnered with LVMH, followed by Fenty Skin and now
2019-2020 Fenty, venturing into luxury fashion for young people with Fenty.com, allowing try-
ons and more.
Regional e-commerce Regional websites continue to appear, with improved services such as next-day
expansion 2019-2020 delivery. For example, me.louisvuitton.com caters to the United Arab Emirates, Saudi
Arabia, Kuwait and Qatar.
Sephora’s Connected The Connected Store concept allows consumers to try out Sephora’s Virtual Artist in-
Store Concept, Virtual store and online, allowing the virtual trying on of make-up before purchase. Having
Artist – 2017 to present started in France, the concept has been expanded to other regions.
COMPANY PROFILES
LVMH’s omnichannel strategy in context
▪ For luxury boutiques, having an e-commerce ▪ LVMH’s presence in various luxury and premium
presence meant the ability to sell during temporary goods industries gives it an opportunity to test
store closures due to COVID-19. Ensuring deliveries personalisation through an omnichannel approach.
are fulfilled in a seamless and timely manner for ▪ A notable example is its beauty retailing brand
consumers through multiple routes remains crucial Sephora, which has continuously incorporated digital
for LVMH. transformation, starting off with its physical stores
▪ Orders can be placed online, by phone or via and then expanding towards fully-fledged websites
WhatsApp, with customers choosing whether they and mobile apps on Apple Store and Google Play in
want the items delivered or to collect in store, with a major countries around the globe. It continued its
confirmed pick-up time to avoid waiting. expansion in 2019 and 2020, seeking to maintain
▪ Among the features that LVMH brands’ websites, sales during the COVID-19 pandemic.
such as Louis Vuitton, offer across multiple countries ▪ LVMH aims to improve online shopping for
are ensuring item availability, smooth viewing and consumers through digital innovation to maintain its
trying of products, easy payment methods, click-and- position in the industry. As well as Sephora Virtual
collect, booking one-to-one appointments and free Artist, it has launched the Sephora Reservation
delivery. Assistant to connect consumers with beauty experts
▪ As the luxury industry explores how to incorporate and chatbots, to enable them to get answers to their
exclusivity into online shopping, LVMH aims to look questions and learn about products.
at e-commerce as a holistic shopping experience for
the consumer, whether they choose to buy online or
in-store.
COMPANY PROFILES
Magazine Luiza: Key company facts
▪ Magazine Luiza (“Magalu”) has a presence only in Magazine Luiza: Sales by Channel 2019-2020
Brazil. The company’s focus is on e-commerce and 100%
electronics and appliance specialist retailers, either
through stand-alone stores or stores located in
shopping centres, including kiosks. The company
also has kiosks located inside the outlets of other 80%
chained retailers, such as apparel and footwear 49%
specialist retailer Lojas Marisa.

71%
▪ In the digital commerce sphere, Magazine Luiza not 60%
only operates its eponymous banner, but also owns
% split
the retail banners Shoestock and Zatini, which
specialise in apparel and footwear products,
Netshoes, whose product portfolio specialises in 40%
sportswear and sports goods, as well as Época
Cosméticos, which focuses on beauty and personal
51%
care, and book marketplace Estante Virtual.
20%
▪ During the harshest period of COVID-19 quarantine 29%
restrictions in Brazil, the company increased efforts
to promote the Parceiro Magalu (“Magalu partner”)
programme, which aims to boost inclusion in the 0%
2019 2020
company’s marketplace platform of small,
independent retailers with little or no digital Electronics and Appliance Specialist Retailers E-commerce
presence. Source: Euromonitor Passport, Retailing 2021 edition
COMPANY PROFILES
Magazine Luiza’s omnichannel investments
▪ Magazine Luiza started as a store-based retailer specialising in electronics and appliances, and then moved to
e-commerce as digitalisation became more prevalent in Brazil. Instead of remaining as a store-based retailer
with digital operations, the company shifted its positioning over the last decade to become primarily a digital
company with physical operations.
▪ To achieve this goal, the company invested in developing solutions in-house, either by building its own team of
scientists and engineers or by acquiring start-ups. The key goal encompassing all the company’s strategies is to
generate brand loyalty by becoming a “super app”, both by increasing the assortment of products offered and
by providing services.
Key Initiatives in Omnichannel for Magazine Luiza

Development Context
Digital wallet The company’s e-wallet, Magalu Pay, was launched in 2019 and enables customers to
enjoy cashback opportunities, as well as have their own digital account, make money
transfers to other Magalu Pay users and pay utility bills.
“Long tail” The company has invested heavily in new product categories, in particular groceries
and home care, in order to reinforce its “long tail” strategy (“#temnomagalu”) and,
with this, increase repeat purchases.
Foodservice delivery app In September 2020, the company acquired hyperlocal foodservice delivery app
AiQFome, with more than 2 million registered customers. AiQFome contributes to the
company's strategy of becoming a super app and increasing recurring purchases in
its ecosystem.
COMPANY PROFILES
Magazine Luiza’s omnichannel strategy in context
Logistics and fulfilment Mobility and order collection
▪ Logistics is a major bottleneck in Brazilian e- ▪ Around 30% of sales generated in the third quarter
commerce, usually resulting in high delivery fees and of 2020 by the company’s over 40,000 sellers were
long delivery times. In 2018, Magazine Luiza delivered by Logbee.
acquired Logbee, with a view to investing in its own ▪ With the gradual lifting of COVID-19 quarantine
last-mile delivery system for light products and to restrictions, Magazine Luiza was able to expand the
reduce delivery times. Retira Loja system (click-and-collect) for sellers’
▪ In July 2020, Magazine Luiza acquired start-up sales. In 240 company stores, customers can collect
Hubsales. Hubsales is a solution that allows orders they purchased digitally from Magazine
manufacturers with little or no digital presence to Luiza’s sellers.
offer their products directly to final consumers ▪ Thanks to the integration of Logbee and the ship-
through marketplace platforms, which is a segment from-store system, as well as the gradual return of
known as “factory-to-consumer” (F2C). Retira Loja with the lifting of quarantine restrictions
▪ More recently, in September 2020, the company on store-based retailing, more than 40% of the
acquired GFL Logística, one of the main logistics company’s e-commerce orders from its own
platforms for e-commerce, with a large presence in inventories arrive at the buyer’s home within 24
São Paulo and Minas Gerais, where e-commerce is hours.
thriving.
▪ With these strategies, Magazine Luiza aims to
▪ The goal of these acquisitions is to reinforce provide clients with a variety of options to have their
Magazine Luiza’s strategy to decrease delivery times orders delivered, while taking a step forward in the
and enhance customers’ experience of the shipping integration of sellers into its marketplace platform.
process.
COMPANY PROFILES
Nordstrom: Key company facts
▪ Nordstrom is a US-based luxury department store Nordstrom: Sales by Channel 2017-2020

chain focused primarily on North America, with an 12,000
online reach of 96 markets.
▪ Known for its high-end apparel and in-store
service, Nordstrom has been a mainstay on 10,000
American high streets for over 100 years.

▪ In addition to its signature department store
8,000
brand, the company also operates an off-price
USD million
chain, Nordstrom Rack, which caters to a wider
range of consumers, including those who are more
price-sensitive. 6,000
▪ The company has invested heavily in developing an

omnichannel ecosystem to supplement its
traditional stores, including Nordstrom Local, a 4,000
chain of small, merchandise-free outlets that offer

online order pick-up and returns.
2,000
▪ Nordstrom made partnering with “buzzy” direct-
to-consumer brands a key strategy in recent years,
capitalising on the popularity of brands such as
Glossier, Skims and Thinx to differentiate itself 0
2017 2018 2019 2020
from other department stores while also driving Department Stores E-Commerce
digital sales.
COMPANY PROFILES
Nordstrom’s omnichannel investments
▪ As one of the first retailers in the industry to embrace e-commerce, Nordstrom has long considered
omnichannel innovation as crucial to its sustained growth strategy. Opting not to over-expand its modest
footprint of traditional department stores, the company has instead focused on building an ecosystem that
engages consumers at each stage of the shopping journey. Consequently, Nordstrom is widely considered to be
ahead of the competition, and well-positioned to keep pace with the modern consumer.
▪ Known for providing a premium shopping experience, Nordstrom caters to consumers across the price
spectrum through its full-line and off-price chains, with robust e-commerce operations in place for both. The
company’s success has come from marrying the quality of its in-store experience with the convenience and ease
of its e-commerce offering.
▪ Endeavours such as revamping the loyalty programme to personalise its offerings, and partnering with relevant
brands to broaden its appeal, have only furthered Nordstrom's stature as an omnichannel leader.
Key Initiatives in Omnichannel for Nordstrom

Development Context
Nordstrom Local These inventory-free stores offer consumers a convenient, hyperlocal experience that
encourages continued engagement beyond the traditional department store.
Nordy Club Nordstrom’s revamped loyalty programme rewards frequent shoppers with an array of
exclusive benefits and personalised shopping experiences.
Flagship store Nordstrom’s 7-storey flagship store in New York City is the cornerstone of its
“ecosystem”, offering customers a premium, integrated shopping experience.
COMPANY PROFILES
Nordstrom’s omnichannel strategy in context
▪ Nordstrom made enhancing its order collection ▪ Throughout its history, the customer experience has
offerings a key priority long before the pandemic been central to Nordstrom’s value proposition. Thus,
caused an acute spike in demand for such services. with the growth of its omnichannel offering, the
Facing the growing threat of competition from e- company has to find new ways to personalise the
commerce, Nordstrom has focused on building an shopping experience across channels.
ecosystem that caters to customers beyond the walls ▪ Nordstrom’s loyalty programme, Nordy Club, goes
of its famous department stores. beyond the traditional points model to offer its
▪ The Nordstrom Local brand, a merchandise-free members personalised shopping experiences and
concept store that provides services such as online services that encourage them to engage. An
order pick-up, returns and alterations, has proven interactive app gives shoppers the opportunity to
successful in driving digital sales. Without the size build a profile, which enables the company to tailor
limitations of a full-line department store, Local its offers and make recommendations. With
outlets are strategically located in metro areas to incentives such as early access to new product
cater to consumers where they live and work. launches and events, the programme serves not just
According to the company, shoppers spend 2.5 times to reward loyal customers, but to personalise their
more per visit at Local stores than they do at other relationship with the retailer.
Nordstrom chains. ▪ Having built an omnichannel infrastructure that can
▪ With department store sales expected to continue cater to consumers throughout the shopping journey,
struggling over the coming years, innovations such as Nordstrom has also been able to provide the kind of
Nordstrom Local will be imperative to continue high-end, personalised experience that the company
meeting rapidly evolving consumer demands. has long been known for.
COMPANY PROFILES
Pomelo Fashion: Key company facts
▪ Pomelo Fashion is a Bangkok-based online retail Pomelo: Total Revenue, 2016-2019

company that focuses on Asia. It delivers to over 30
50 countries globally, and has established physical
retail stores in Thailand and Singapore. Pomelo is
set to expand into Indonesia and Malaysia in the 25
first quarter of 2021. Future plans include
expansion into Hong Kong, the Philippines and
Vietnam.
20
▪ Pomelo Fashion started as an online platform, and
has been banking on its omnichannel strategy to
USD million
increase its footprint in Asia. In 2019, it secured
15
USD52 million in funding from various investors,
including Central Group, making it the first Thai
start-up to raise Series C funding. Besides the
focus on increasing offline touch points, Pomelo 10
has been investing in machine learning and

automation to increase the effectiveness of
personalising customer interactions. Its most 5
prominent omnichannel strategy is “Tap, Try, Buy”
which is unique in the region. This aims to solve
the pain- points associated with shopping for 0
apparel online due to sizing and quality issues. 2016 2017 2018 2019
Source: Department of Business Development Thailand
COMPANY PROFILES
Pomelo Fashion’s omnichannel investments
▪ Pomelo Fashion was initially purely an online retailer. Its omnichannel strategy came about when it was faced
with online challenges in the fashion category that did not exist in other categories, such as consumer
appliances. To solve the pain-points of fit, quality and style, which required that customers be able to try on
items, Pomelo explored various ways to tackle the challenge of reducing returns.
▪ Having a physical store seemed to be the solution that could drive growth in its e-commerce. As the offline
channel is about convenience and proximity to consumers, Pomelo’s unique strategy lies in its Partner Stores,
which allow the company to scale its offline operations through partnering with various retailers. This has
helped Pomelo to cut the cost of offline expansion, while working in synergy to grow its online sales.
Key Initiatives in Omnichannel for Pomelo Fashion

Development Context
“Tap, Try, Buy” Rebranded from Pomelo Pick Up service, the increase in demand reflects the growing
consumer preference for online-to-offline adoption.
Pomelo’s app has “In- Customers are able to reduce their waiting time in-store by joining a virtual queue to
Store” mode book a fitting room. This works in tandem with “Tap, Try, Buy”, where consumers can
order online and try their orders offline in a store at their convenience.
In-app live stream Pomelo offers new immersive in-app capability that will create more engagement with
shoppers. The live stream includes on-site interviews with fashion influencers, and
interactive Q&A sessions.
COMPANY PROFILES
Pomelo Fashion’s omnichannel strategy in context
▪ Pomelo’s unique omnichannel strategy lies in its ▪ In recent years, Pomelo Fashion has identified the
“Tap, Try, Buy” strategy, rebranded from Pomelo need to build its personalised marketing, particularly
Pick Up. Users are able to order items online through given the nature of its platform, which has a large
the Pomelo app or website, then try them on at a number of SKUs. Pomelo has been investing in
selected store and only pay afterwards for the items machine learning and automation to increase the
they want. Shoppers can browse at their convenience effectiveness of customer retention.
and spend less time in stores. Not only is Pomelo ▪ One issue that its personalisation strategy seeks to
gradually opening more retail outlets of its own, it tackle is that of cart abandonment. Using push
has also partnered with various physical stores, such notifications and News Feed Cards, Pomelo targets
as cafés, salons, fitness studios and even other individuals based on personal preferences, recently
clothing stores, to offer greater convenience to its viewed items and where they stopped along their
customers by enabling them to try on items before purchase journey, in order to re-engage consumers
paying. who abandoned their shopping cart. Personalised
▪ Through this omnichannel strategy, it aims to push notifications to nudge users to come back to the
integrate its products into customers’ lifestyles, app include using the user’s name and images of
while expanding its coverage more efficiently. items, which has seen an increase in the conversion
Partner stores are selected based on the behaviour rate.
and shopping preferences of Pomelo’s customers. ▪ Approximately 85% of Pomelo’s sales are made
Since the launch of “Tap, Try, Buy”, Pomelo has seen through its app, which makes it important for
strong growth in consumer usage of this function, Pomelo to start the personalised journey via its app
leading to high volume sales. and then bring it offline.
COMPANY PROFILES
Woolworths Supermarket: Key company facts
▪ Woolworths Supermarket is an Australian Woolworths Supermarket: Retail value Sales

supermarket chain that focuses primarily on its (incl. E-commerce) 2015-2020
domestic market, and is part of Woolworths Group, 32,000
which has operations in alcoholic drinks specialist
retailers, mass merchandisers and other
31,000
hospitality divisions. Other main operations
include a supermarket chain in New Zealand.
▪ Woolworths Ltd opened its first store, the 30,000
Woolworths Stupendous Bargain Basement, on 5
USD million
December 1924 in Sydney, Australia. During its
early days, the company rapidly rose to 29,000
prominence and was the first variety store in the

world to use cash registers that printed receipts
28,000
for customers.
▪ The company is the largest supermarket retailer in
Australia. While Australians are not brand-loyal 27,000
when shopping, with price being one of the main
factors driving their decisions, Woolworths
26,000
Supermarket excels by offering good customer
service and low prices. It is also quick to revamp
its product ranges and invest in technology to 25,000
better appeal to consumers. 2015 2016 2017 2018 2019 2020
COMPANY PROFILES
Woolworths Supermarket’s omnichannel investments
▪ As the rise of e-commerce continues to transform the global retail landscape, Woolworths Supermarket’s
leadership team is taking steps to boost the company’s online and offline profiles in its markets. The company is
also the leading e-commerce player by retail sales in Australia.
▪ In 2019, Woolworths took further action to bolster its status as a digital retailer to be reckoned with by making
significant investments in its supermarkets’ digital and data strategy through WooliesX. Within the offline
channel, the company expanded its Scan&Go service to more stores across Australia. This enables customers to
skip the conventional checkout process by scanning their items with their smartphones as they shop.
Key Initiatives in Omnichannel for Woolworths Supermarket

Development Context
E-commerce in the grocery channel is experiencing a massive boom due to the COVID-
19 pandemic, and having a dedicated division to address key developments is driving
WooliesX significant growth for the business. Further consolidation of all media, creative and
digital businesses in 2020 will help to support the company’s aspiration to adopt a
digital-first creative approach to drive growth.
Woolworths Scan&Go not only benefits from minimising human physical interaction,
Scan&Go which helps to keep its customers and employees safe, but also reduces queuing time,
thus increasing the speed of shopping for groceries.
Woolworths has invested in robotic automation to assist employees to hand-pick online
Micro-fulfilment
orders. This investment will provide a significant increase in efficiency, resulting in
centre
shorter delivery times to help fulfil same-day delivery.
COMPANY PROFILES
Woolworths Supermarket’s omnichannel strategy in context
▪ The pandemic has highlighted the importance of ▪ Woolworths Supermarket has placed improving the
having a strong online presence in the grocery in-store experience at the heart of its growth model
channel, and Woolworths Supermarket and its to meet the changing needs of customers. Even
parent company continue to be well-positioned to though e-commerce is growing rapidly for
benefit from this trend by developing and offering a Woolworths Supermarket, in-store retail sales still
range of services, such as micro-fulfilment centres make up the majority of its total revenue.
and “dark stores” to increase capacity. It has also ▪ Due to the pandemic in 2020, there was a significant
improved its loyalty programme integration to focus on customer safety. The retailer was very quick
increase member engagement, upgraded its websites to react by introducing a range of services, such as
and apps to deliver a more personalised customer special hours to ensure the elderly and people with
experience, and offered drive-through grocery disabilities would be able to shop in less crowded
collection pick-up zones. aisles.
▪ The retailer’s priorities include adopting a customer- ▪ In 2020, Woolworths Supermarket launched its
first approach by refining all end-to-end processes in highly successful Lion King Ooshies and Discovery
the shopping journey, from pre-purchase to post- Garden community campaigns to further encourage
purchase. This was especially true during the peak of consumers to shop in its stores. It also negotiated
the pandemic, when it continued to offer new with AusPayNet to increase the contactless payment
services to benefit the community. limit to AUD200 to reduce customers’ need to touch
the payment terminal.
COMPANY PROFILES
Zalora: Key company facts
▪ Zalora is Asia’s leading online fashion retailer, offering Zalora: Revenue by Country 2019/2020
apparel, footwear and accessories from a wide range of 200
local and international brands. Established in 2012, the
company has since expanded to eight countries: Singapore, 180
Indonesia, Malaysia, Philippines, Brunei, Taiwan, Hong
Kong and Macau. The parent company Rocket Internet also 160
entered Thailand and Vietnam, then pulled out, but Central

140
Group in Thailand recently acquired Zalora.
▪ Zalora serves as a one-stop fashion destination offering 120
affordable prices, attractive shipping and returns policies,
USD million
customer loyalty programmes and a variety of payment 100
options for consumers in Southeast Asia.
80
▪ Thoroughly understanding the market nuances within
Southeast Asia has given the company a strong edge, as it 60
localises its strategies, evolves with trends, and capitalises
on the huge growth potential in the region. According to its 40
COO, popular shopping days such as 11.11 have helped
Zalora grow its traffic and sales every year. 20
▪ In line with its “data first, then fashion” strategy, Zalora

0
rolled out an insights platform called Trender in 2020 to Hong Kong, Indonesia Malaysia Philippines Singapore
enable it to understand more about consumer purchasing China
behaviour and keep up with trends. 2019 2020
COMPANY PROFILES
Zalora’s omnichannel investments
▪ Over the years, Zalora has increasingly been focusing on its omnichannel strategy to provide shoppers with a
seamless offline-to-online experience. In 2014, it launched Southeast Asia’s first interactive pop-up store in
Singapore, to complement its online presence. The store allows customers to physically try on their clothes
before proceeding to scan their products and get the outfits delivered to their home. The pop-up store also
features Wi-Fi and computers to allow people to browse its full selection of clothes.
▪ Moreover, Zalora has developed a mobile app that synchronises with its website, where products added by
customers to their carts or wish lists are saved across devices.
▪ In 2019, Zalora continued to open pop-up stores throughout Southeast Asia, and added new features. For
example, in the Philippines, Zalora developed a virtual fitting room in its store to provide experiential shopping
to customers.
▪ With COVID-19 in 2020, Zalora ensured that its on-site experience adapted to accommodate the new line of
Zalora Essentials, while it also accelerated its chatbot capabilities, and started testing AR and VR.
Key Initiatives in Omnichannel for Zalora
Development Context
Zalora Now next-day In order to scale up operations, Zalora started offering a new subscription service in
delivery Southeast Asia called Zalora Now, with free next-day delivery for all orders.
Zalora launches cashback To encourage consumers to purchase online, Zalora gives them up to 80% discount
programme and 50% cashback for purchases made through the desktop and app.
Zalora introduces a visual Zalora partnered with AI company ViSenze to let users take a photo of their desired
search feature item and search on their phones to facilitate the search process.
COMPANY PROFILES
Zalora’s omnichannel strategy in context
▪ In 2017, Zalora partnered with Singapore Fashion ▪ Zalora rolled out a personalised “Just for You” page
Week and developed a shoppable live stream feature, recently, which tracks customers’ browsing patterns
where users could browse a catalogue of live looks, and uses AI to suggest exclusive items tailored to
add their favourites to a wish list, and purchase items their preferences.
on the Zalora e-shopping mobile app immediately, ▪ Moreover, the company has taken on a data-driven
satisfying the demand for instant gratification. strategy and launched a new insights platform called
▪ In line with its aim to transform its e-commerce Trender, which gives brands access to users’
strategy, Zalora built a 44,000 sq m regional e- demographic and behavioural insights to customise
fulfilment hub in Malaysia in 2017. Featuring a solutions for shoppers.
mobile picking system, order management system ▪ Zalora also recently announced its collaboration with
and a conveyor belt, the centre processes 100,000 a global advertising technology firm called The Trade
products per day, and has special express lane status Desk that lets participating merchants on Zalora
at customs, facilitating faster delivery to customers. understand users’ path to purchase and tailor its
▪ During online shopping festivals such as Singles’ Day campaigns accordingly, giving users an improved
and Black Friday, the warehouse has processed 10 product discovery experience.
times the orders of an average day, recording a
picking rate of one item per second.
Introduction
Omnichannel Trends
Company Profiles
Looking Ahead
LOOKING AHEAD
The outlook for omnichannel
How Trend 1 will evolve – Mobility How Trend 2 will evolve – How Trend 3 will evolve – Logistics
and order collection Personalisation across channels and fulfilment
▪ More than 40% of industry ▪ Adopting personalisation ▪ For e-commerce to truly become
professionals are investing in strategies often raises issues of the primary channel for
fulfilment and logistics to data privacy and how retailers distribution, the logistics and
improve delivery efficiencies, use consumer data. While fulfilment industry will need to
according to Euromonitor’s Voice consumers are willing to provide step up to ensure online retail is a
of the Industry: Digital Survey companies with information in worthy replacement to the in-
2021. Rising last-mile delivery exchange for a convenient and store retailing experience.
costs and environmental personalised experience, they ▪ Logistics and fulfilment will need
concerns, magnified by the crisis- still have concerns about their to be rapid, more robust, less
driven e-commerce boom, are privacy. exposed to manpower-related
forcing companies to explore ▪ Maintaining data privacy is inefficiencies, and offer a better
delivery and collection methods. particularly tricky and will experience from point of sale to
▪ In the future, retailers and brand continue to be a major challenge. delivery.
manufacturers need to continue While this trend is likely to be a ▪ Technological innovation and
to rethink last-mile strategies, mainstay in the foreseeable robotics will be key to improving
from low-tech click-and-collect future, we believe it is vital for scalability and agility to cater to
services to high-tech robotics, to retailers to remain transparent this shift.
continue to meet consumers’ with how the data is used – and it
expectations. should not be applied too far
from its original purpose or
intent.
LOOKING AHEAD
Lessons for retailers
▪ Most retailers in major markets are already using multiple platforms

and channels for sales. In the post-COVID-19 digital era, sales across Industry professionals highlighting
the various channels can no longer act independently from one important commerce-specific
another. If this is not set up properly, it creates a disjointed and developments in the next 12 months
inconsistent experience for the consumer, which results not only in
lower basket sizes, but also poorer conversions.
▪ Furthermore, creating a comprehensive “one view” of the consumer Creating a
Improving the
consistent
by sieving through the billions of datapoints is also one of the biggest customer
brand
challenges that a lot of retailers are facing, as the existing operations journey and
user
experience 54%
infrastructure remains largely siloed. 61% across
experience
channels
▪ Many retailers are also still suffering from the effects of a volatile
COVID-19-struck climate, resulting in greater financial burdens due
to property leasing costs and employee wages. Nevertheless, this is
the moment where change is required. There is an urgent need to
embrace how consumers are shopping now.
▪ A true omnichannel experience will be created through integration
Enhancing
and innovation, where each channel is used to support and product
Becoming
supplement the other. Successful omnichannel retailers will be able delivery 51% consumer-
53%
centric
to address logistics, fulfilment, last-mile delivery and collection and options
the personalisation trend by exploring new and innovative digital
experiences and figuring out how to allow their audience to use any
of the available channels at any point of the shopping journey. This Source: Euromonitor International Voice of the Industry
will provide a truly consistent, seamless experience for consumers. Digital Consumer Survey 2021
LOOKING AHEAD
Lessons for manufacturers
▪ The COVID-19 pandemic has not only showcased how quickly the Technology investments or
retail industry will evolve, but also the importance of omnichannel initiatives that have accelerated
retailing. The digital revolution has also done more than just due to the pandemic
heighten consumer expectations; it has also acted as a catalyst by
accelerating new business models such as direct-to-consumer and Expansion of mobile
applications and
marketplaces. As more businesses embrace e-commerce, there will platforms
be greater competition, and this will ultimately improve options for
Tailored marketing or
consumers. personalised
recommendations
▪ Brand manufacturers that work closely with retailers will be able to
expand the number of channels where they are able to sell their
Enhanced website search
products. This will allow for greater accessibility – which will or site navigation
generate more opportunities for their products or services to be
Development or
seen and ultimately chosen over their competitors. improvement of
▪ Businesses are hopeful for a return to some form of normalcy in omnichannel presense
2021. As the global vaccination process continues, companies will be Fulfilment and logistics
faced with the opportunity to maximise their presence and, in turn, to improve delivery
efficiency
their sales through both online and offline channels, creating an
omnichannel brand offering. Launch or expansion of
digital payment
▪ Personalisation, delivery, logistics, fulfilment and embracing new- capabilities
age business models should be at the top of a manufacturer’s agenda. 0% 20% 40% 60%
If properly addressed, this will allow an improved and consistent Industry professionals
quality of service, resulting in a better overall shopping experience. Source: Euromonitor International Voice of the Industry Digital
Consumer Survey 2021
FOR FURTHER INSIGHT PLEASE CONTACT
Hianyang Chan
Senior Consultant, Euromonitor International
Hianyang.chan@euromonitor.com
https://www.linkedin.com/in/hianyangchan/
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Global Trends and Corporate Strategies in Omnichannel: June 2021

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Global Trends and Corporate Strategies in Omnichannel: June 2021

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GLOBAL TRENDS AND CORPORATE STRATEGIES IN

About this briefing

Why read this report?

SOCIAL MEDIA STORE

Companies profiled in this report (1)

Headquarters 2019 Sales (retail

Best Buy, Geek United States,

ICA Supermarket, Sweden, Latvia,

Companies profiled in this report (2)

Headquarters 2019 Sales (retail

Pomelo Fashion Pomelo Fashion Thailand Thailand, Singapore USD13.2 million

Omnichannel today (overview)

Mobility and order Personalisation across Logistics and

Trend 1: Mobility and order collection

of global connected consumers viewed it as an important

Trend 2: Personalisation across channels

Trend 3: Logistics and fulfilment

increased significantly in recent years, but they are still

Best Buy: Key company facts

40% of Best Buy’s online sales in 2019.

knowledge about different products now brings

Best Buy’s omnichannel investments

Key Initiatives in Omnichannel for Best Buy

Best Buy’s omnichannel strategy in context

Mobility and order collection Personalisation across channels

Boots UK: Key company facts

Boots UK’s omnichannel investments

Boots UK’s omnichannel strategy in context

Logistics and fulfilment Personalisation across channels

Freshippo: Key company facts

across the country. While the original

Source: Euromonitor Passport, Retailing 2021 edition

Freshippo’s omnichannel investments

Freshippo’s omnichannel strategy in context

Logistics and fulfilment Personalisation across channels

ICA Sverige: Key company facts

operations; ICA Real Estate, which owns and

mainstream grocery retailer. Convenience Stores Supermarkets Hypermarkets E-Commerce

ICA Sverige’s omnichannel investments

Key Initiatives in Omnichannel for ICA Sverige

ICA Sverige’s omnichannel strategy in context

Mobility and order collection Personalisation across channels

LVMH Moët Hennessy Louis Vuitton: Key company facts

LVMH’s omnichannel investments

LVMH’s omnichannel strategy in context

Mobility and order collection Personalisation across channels

Magazine Luiza: Key company facts

chained retailers, such as apparel and footwear 49%

specialist retailer Lojas Marisa.

presence. Source: Euromonitor Passport, Retailing 2021 edition

Magazine Luiza’s omnichannel investments

Key Initiatives in Omnichannel for Magazine Luiza

Magazine Luiza’s omnichannel strategy in context

Logistics and fulfilment Mobility and order collection

Nordstrom: Key company facts

▪ Nordstrom is a US-based luxury department store Nordstrom: Sales by Channel 2017-2020

American high streets for over 100 years.

▪ The company has invested heavily in developing an

chain of small, merchandise-free outlets that offer

Nordstrom’s omnichannel investments

Key Initiatives in Omnichannel for Nordstrom

Nordstrom’s omnichannel strategy in context

Mobility and order collection Personalisation across channels