Tofugear-2018亚洲数码转化（英文）-2019.1-36页_4mb

2018 Asia Digital Transformation Report Summary

Core Content

The 2018 Asia Digital Transformation Report explores how retailers in Asia are responding to the challenges of digital transformation in an era where the connected consumer dictates engagement with brands. The report highlights that while innovation is critical, many retailers are struggling to implement it effectively due to various internal and external barriers.

Main Viewpoints

• Digital Transformation as a Priority: The report emphasizes that digital transformation is a crucial initiative for retailers, with the majority recognizing its importance in reimagining the customer experience.
• Customer Experience as a Driver: Improving the customer experience is the number one motivation for digital investment, with nearly 75% of retailers citing it as a key reason.
• Marketing Department as a Leader: The marketing department is most frequently identified as the driver of innovation and digital initiatives, with 54% of respondents selecting it as the main department leading these efforts.
• Challenges to Innovation: Barriers to innovation include a focus on short-term ROI, resistance to change, and lack of cross-departmental cooperation, particularly among larger retailers.
• Role of E-commerce and Marketplaces: E-commerce is a significant channel for retailers, with 67% of surveyed retailers conducting online sales. Tmall is the most popular marketplace, used by nearly half of the respondents.

Key Findings

• E-commerce Growth: Online sales in Asia account for 40% of global e-commerce. However, the growth is most pronounced in Southeast Asia due to a growing middle class and expanding internet access.
• Marketplace Usage: 70% of retailers with e-commerce operations are also active on marketplaces. Tmall leads in popularity, followed by JD.com, Lazada, Zalora, and Amazon.
• Digital Maturity: Only 27% of retailers believe their organization is a leader in digital transformation, indicating a general perception of being behind competitors.
• Cross-Departmental Cooperation: 41% of retailers in Asia cite a lack of cross-departmental cooperation as a significant barrier to innovation.
• Investment Priorities: 43% of retailers plan to invest in business intelligence and data analytics, highlighting the increasing importance of data in decision-making.
• Emerging Technologies: Augmented reality is planned to be implemented by 56% of retailers within the next 12 months, while virtual reality is also gaining traction.

Survey Scope

• Conducted by Tofugear and Inside Retail, the survey targeted 150 retail executives across 11 sectors in 15 countries.
• The survey was anonymous and covered a range of topics, including digital strategy, innovation, and e-commerce operations.
• Respondents were from various roles and locations, with a majority being local and regional.

Barriers to Innovation

• Return on Investment (ROI): Over half of respondents identified ROI as the main barrier to innovation.
• Resistance to Change: 45% of respondents cited resistance to change as a significant challenge.
• Cross-Departmental Cooperation: A major hurdle for larger retailers, often due to siloed operations.
• Understanding the Connected Consumer: Many retailers find it difficult to keep up with evolving consumer expectations.
• Attracting Digital Talent: The ability to attract and retain skilled personnel is a challenge for many retailers.

Digital Strategy and Maturity

• Digital Strategy Adoption: 64% of retailers agree that having a digital strategy is a key objective, but only a third have a digital-first approach.
• Need for Horizontal Teams: The report suggests that the absence of horizontal digital teams is a key issue, as they are essential for aligning departments and driving innovation.
• Future Focus: 70% of retailers plan to focus on improving the customer journey in the next 12 months.

Conclusion

The report underscores the importance of digital transformation in the retail sector, especially in Asia. While many retailers are aware of the need to innovate and improve customer experiences, the implementation of these strategies is hindered by various challenges. The findings suggest that a more holistic, cross-departmental approach is needed, along with a shift in organizational culture to support innovation and digital adoption.