PwC: How to seize the dividends of emerging retail development?Enterprises need to consolidate three major internal strengths

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China’s retail industry has developed rapidly. From traditional retail models to new retail models, the retail industry has experienced several major changes. In recent years, new models such as e-commerce, O2O, DTC, unmanned stores, and instant retail have also continued to promote the development of the retail industry. At the same time, the consumption psychology of Chinese consumers has become more mature and healthy along with these economic and industry changes, and consumption decisions have become more stable and rational. Recently, PwC released the “PwC 2023 Global Consumer Survey China Report”, which summarized the three major “internal strengths” that retail companies need to consolidate based on the opportunities faced by China’s retail industry.

According to PwC, retail companies should attach importance to sustainable and stable growth and use digital means and innovative thinking to optimize business models to cope with current challenges and control future competition. First of all, the “PwC 2023 Global Consumer Survey China Report” points out that factors such as customization, sustainability and transparency have a strong motivating effect on Chinese consumers’ purchasing decisions.

Chinese consumers are more willing than global consumers to pay above-average prices for various product attributes. This reminds retail consumer goods companies that they must prioritize ESG into daily business operations to maintain competitiveness and achieve long-term development and success. Retail companies should view sustainable operations as a differentiating factor that can add value to their products and services. This shift in mindset has led to innovative collaborations and disruptive changes, including in how brands can leverage sustainability as a “value-added” differentiator.

Consumer Sustainable Marketing and Engagement Use Cases

Secondly, technological empowerment is also a focus that retail companies should focus on. PwC found that a number of generative AI tools have become popular around the world, and Chinese consumers have shown strong interest in the application of such cutting-edge chatbots and other generative AI technologies.

The widespread application of artificial intelligence-generated content allows retail companies to implement innovative use cases in private domain operations, increase interaction with consumers, and enhance the consumer shopping experience. Retail consumer goods companies need to use technological innovation to create a satisfactory digital consumption experience journey, boost consumption willingness, and release consumption potential.

Application of generative AI technology

The final “internal strength” refers to leveraging the power of the brand story. PwC proposes that for retail consumer goods companies, it is crucial to explain the product and the values ​​it represents by telling a compelling story.

PwC recommends that companies adopt loyalty programs and that member operations should be regarded as an important part of systematic brand building. Brands can continuously communicate brand positioning during this process to strengthen users’ brand awareness. By leveraging the power of their customer base, brands can unlock new growth opportunities and win the long-term loyalty of their audiences.

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