2021-11-17-科尔尼-Lifting_the_barriers_to_retail_innovation_in_ASEAN_15页_1mb

Summary of "Lifting the Barriers to Retail Innovation in ASEAN"

Core Content

The document outlines the challenges hindering retail innovation in the Association of Southeast Asian Nations (ASEAN) and proposes strategies to overcome them. Despite ASEAN's potential as a large and growing market, retail innovation remains limited due to regulatory, talent, infrastructure, and financing barriers. The goal is to modernize the retail sector and unlock its full potential through regional integration and collaboration.

Main Viewpoints

• Market Potential: ASEAN is the seventh-largest market globally with over 600 million consumers and a GDP of $2.4 trillion, projected to grow to $1.3 trillion in retail sales within five years.
• Low Innovation Levels: ASEAN retailers lag behind in innovation compared to developed markets, with modern retail accounting for less than half of total retail activity.
• Key Barriers: The four main barriers to retail innovation in ASEAN are non-tariff barriers, talent shortages, low trade efficiency, and limited integration of retail innovators.

Key Information

1. Reduce Non-Tariff Barriers for New Products

• Current Situation: Non-tariff barriers (NTBs) impede trade and discourage investment in new products. These include inconsistent regulations, complex labeling requirements, and limited public-private cooperation.
• Root Causes: Domestic regulations vary across ASEAN, leading to increased costs and delays. Limited communication channels between businesses and policymakers hinder understanding and implementation of effective policies.
• What is Being Done: ASEAN has prioritized the implementation of AEC measures, including the ASEAN Single Window, and has reactivated the Trade Facilitation Joint Consultative Committee.
• Recommendations:
  • Harmonize labeling and testing requirements.
  • Strengthen the ASEAN secretariat leadership in integration efforts.
  • Promote public awareness of the ASEAN idea to foster regional support.

2. Improve Access to Talent

• Current Situation: ASEAN retailers face a shortage of skilled workers, particularly in areas like data analytics, digital marketing, and technical skills.
• Root Causes: Restrictions on labor mobility, an education system that emphasizes knowledge acquisition over application, and limitations on foreign ownership hinder talent availability.
• What is Being Done: Educational programs like Singapore's FutureSchools and vocational training initiatives such as the Singapore Institute of Retail Studies (SIRS) are being implemented.
• Recommendations:
  • Integrate vocational training across sectors and countries.
  • Recognize professional qualifications across ASEAN to improve talent mobility.

3. Improve Trade Efficiency

• Current Situation: Inefficient customs procedures, underdeveloped transport infrastructure, and weak cross-border payment systems reduce trade efficiency and increase costs.
• Root Causes: Inconsistent customs classifications, poor coordination among customs authorities, and inadequate transport links contribute to delays and inefficiencies.
• What is Being Done: The ASEAN Single Window is being implemented to streamline customs procedures, and infrastructure upgrades are underway, such as airport expansions in Indonesia.
• Recommendations:
  • Prioritize the implementation of the ASEAN Single Window.
  • Harmonize payment systems and establish a regional facility for resolving online payment disputes.

4. Promote Integration of "Retail Innovators"

• Current Situation: ASEAN retailers are slow to adopt new technologies and innovation strategies, often due to a short-term mindset and underdeveloped networking culture.
• Root Causes: Hierarchical corporate structures suppress bottom-up innovation, and the competitive environment discourages collaboration.
• What is Being Done: Government agencies like SIRS and the ASEAN Retail Chains & Franchise Federation (ARFF) are providing support and promoting regional cooperation.
• Recommendations:
  • Establish a regional network of government agencies to support innovation.
  • Foster collaboration between innovation incubators and retailers to share knowledge and resources.

The Opportunity for ASEAN

• Economic Integration: Retail innovation is essential for ASEAN's growth and prosperity. It can drive economic integration, improve efficiency, and create new opportunities for employment and business.
• Consumer Experience: Modern retail technologies and e-commerce can enhance the shopping experience, offering convenience and personalization that ASEAN consumers increasingly expect.
• Future Outlook: With the right strategies, ASEAN retailers can catch up with global trends, attract skilled talent, and become leaders in the region's retail transformation.

Conclusion

To fully realize the potential of retail innovation in ASEAN, a coordinated regional effort is needed to address regulatory, talent, infrastructure, and innovation integration barriers. The document highlights the importance of harmonizing regulations, improving vocational training, enhancing trade efficiency, and fostering collaboration among retailers and innovators. These steps are crucial for transforming ASEAN into a modern, integrated retail market.