John Clements Holds E-Commerce/Retail Industry Briefing by Alexandra Lamb Moran

Photo credit: Dan Napa’s Facebook post

We at John Clements were privileged to listen to a very interesting and engaging presentation on one of most women’s favorite topics — the Retail Industry, aka shopping. But believe it or not, some of the retail tidbits and statistics shared with us by Edilyn Yu, Assistant Country Manager at Inditex Philippines, the company that brought us Zara, Massimo Dutti, Bershka, Stradivarius, and Pull & Bear, may surprise you:

• More men shop online than women on a weekly basis
• 30 to 39-year-olds are those who shop most online
• Most online purchases are done via PC

Top Asia Pacific Online Retailers in 2018

1. Alibaba
2. JD.com
3. Seven & i Holdings Co., Ltd.
4. Aeon Co., Ltd.
5. Amazon

Top Philippine Retailers in 2018

1. SM Retail Inc.
2. Mercury Drug
3. Puregold Price Club, Inc.
4. JG Summit Holdings, Inc.
5. Seven & i Holdings Co., Ltd.

Retail is ever-changing; stores have become more relevant than ever. Consumers’ behaviors have changed — they seek and crave new experiences. Today, online is no longer a separate entity, but rather an expectation. Technology has reached a new level of innovation, but despite that, ultra-specialized shopping experiences are the in-thing. People are still looking for the human touch and no AI or bot could ever replace human interaction.

Here are some Philippine online shopping statistics:

1. Men between the ages of 30 and 39 comprise the largest online shopping demographic.
2. In 2015, online shopping activity comprised 0.5% of total retail purchases. This trend is anticipated to increase to 4.7% by 2025.
3. Compared to other western nations, shopping in stores and malls is still very popular in the Philippines. Filipino consumers are still looking for the human touch.

Meanwhile, Zara/Inditex’s latest innovation of RFID tags, implemented in 2017, has revolutionized the company. This technology provides real-time information on price, style, and size availability. Zara.com was launched in October 2019, while MassimoDutti.com, set for launching in May 2020, will be delayed due to COVID-19. Zara sells 500 units per hour, so the RFID has greatly helped to create efficiencies in their process.

Top 4 Retail Trends

1. Omni-Integration — Everyone expects the convenience of shopping, returning, and sharing products with a click of a button. Brick-and-mortar stores and online shopping are no longer separate entities, but rather complementary platforms. To be successful in retail, the physical and digital have to coexist. Other trends such as Click and Collect is gaining ground. You purchase products online, then collect at a store nearest you.
2. Extreme Convenience — The modern consumer is extremely busy. They are looking for a seamless, frictionless retail experience. With data analytics, you can create targeted marketing, customize promotional messages, and provide focused offerings. Retailers now have game-changing power to influence and create great customer experiences.
3. Extreme Experience — Customers no longer choose products based solely on functionality, but also on emotional engagement and experiences, which, in turn, develops brand loyalty. The use of big data is instrumental in determining product offerings. It’s like being in an Apple store.
4. Sustainable Practices — Retailers connect on a deeper level with consumers to make them feel they are contributing to a greater good — like saving the environment — when shopping their brand. Retailers like Zara are increasing efforts to reduce plastics and waste. There is an increased campaign for sustainability.

So, what kind of profiles of people is the retail industry looking for? How should they be developing their talent? A survey conducted on senior leaders today revealed that 57% agreed that soft skills are more important than hard skills. Soft skills required in the retail industry today are:

• Curatorship of good merchandise (AI cannot do this, only humans)
• Good interpersonal skills
• Flexibility/Adaptability
• Confidence and presentability (you have to dress and look the part)
• Commercial awareness (what’s trending, what’s the latest)

It goes without saying that hard skills are just as important as it helps increase employee productivity and efficiency and, subsequently, increasing employee satisfaction. Some of the hard skills required in the retail industry are:

• Good with numbers
• Business Analysis (sales forecasting, strategic planning)
• Marketing Management & Design (Search Engine Optimization, Google Analytics, Adobe Creative Suite)
• Communication Skills (foreign languages, digital communication, copywriting)

A well-rounded retail practitioner should aim to strike a balance between creativity and numbers. To be successful in retail, here is a list of required skills to meet today’s ever-changing and challenging retail world:

1. Retail Math
2. Excel Skills
3. Financial Statements
4. Simple Forecasting
5. Merchandising Management
6. Public Speaking and Copywriting
7. Foreign Languages
8. Customer Service
9. Product Specialist
10. Sales and Cashiering
11. Store Operations
12. Visual Merchandising
13. Marketing

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About the author:

Alexandra is currently the Business Development Director for the John Clements Leadership Institute (JCLI). Since 2011, she has also been a Discussion Leader and Executive Coach in John Clements’ Corporate Learning Division. She was previously the Country Head and Business Development Director of Renoir Consulting, covering Philippine and Hong Kong markets. Prior to this, Alexandra spent 16 years in the financial services industry as VP head of Private Banking Support and Compliance for Republic Bank of New York (both in New York and in Hong Kong) and with HSBC in Hong Kong.