Retail and FMCG

(Fast Moving Consumer Goods)

Overview

To create a seamless consumer experience during and after purchasing, retailers and brands must have visible, accurate and interconnected information about products at all times.The retail landscape is changing and the industry is quickly responding to the changing habits of consumers who switch between bricks-and-clicks. With the growth of e-commerce and mobile technology, consumers are more empowered than ever before and have increasingly high expectations of product information, product availability and buying experience.

By enabling the unique identification and smooth exchange of products and information – from source to consumers – GS1 standards are facilitating the integration of store operations, delivery and inventory management to fulfil consumers' expectations.

By applying GS1 global standards and GS1 Hong Kong solutions, we can help to:

  • Identify the trading items and logistics units by barcodes and keys (GTIN, GLN and SSCC) for product, location and shipment unit's identification accurately in order to boost operational efficiency
  • Enable barcode POS scanning system for efficient retail checkout and efficient B2B electronic ordering, invoicing and shipment notice
  • Provide authentic and trusted sources of product information from brand owners to consumers through Consumer Connect mobile app
  • Enhance inventory management and consumer journey analytics through RFID technologies to fulfil a solid omni-channel strategy and facilitate shopper behaviour analytics
  • Uplift capabilities in delivering consumer service via the Consumer Caring Scheme, a scheme to recognise enterprises' excellence in consumer care through the innovation and practice of consumer value-related strategies

Business case sharing

     

                   

3M Hong Kong’s supply chain has been made complicated by the sheer variety of product types passing through it and the fast pace of their movement, from the point of manufacturing overseas to the consumers. Dedicated to maintaining a high level of customer service, 3M Hong Kong accords priority to building a relationship of trust with its customers to retain their loyalty to the products it supplies and the brand it represents.

GS1 Hong Kong has recognized 3M as the “Consumer Caring Company” for four years in a row to honor its consumer care commitments. Under the “Consumer Caring” Scheme, the company has been positively evaluated against such core consumer caring values as consumer care, sincerity, commitment, product quality and safety assurance, service quality, understanding of consumer behaviours, and caring for employees. The judging process includes company visit, performance evaluation and consumer survey. The results were then measured according to the Efficient Consumer Response (ECR), a recognized business best practice aims at achieving customer satisfaction through collaboration between businesses and trading partners.

Source: Annual Report 2014, GS1 Hong Kong

Concertina Set

Mobile marketing has become increasingly important due to the proliferation of new consumer trends and purchase patterns driven by mobile technology. To address increasing consumer demand for product information prior to purchase, Angel Cosmetics has compiled a full inventory list of its popular products, combined with their respective GS1 barcodes and product images, for uploading on GS1 Hong Kong’s cloud-based product information portal BarcodePlus.

The company has also chosen Consumer Connect, a mobile application developed by GS1 Hong Kong that helps retailers deliver their products and brand values via a barcode scan, to drive its mobile marketing. With a simple scan of the GS1 barcodes on the cosmetics and beauty products using the app, consumers are able to retrieve extended product information on their mobile devices, including smartphones and electronic tablets. Extending its marketing reach further, Angel Cosmetics implemented a marketing campaign in 2013 across all its 12 retail shops in Hong Kong, based on Consumer Connect. Consumers who downloaded the app on their mobile devices would be offered a mobile digital coupon after scanning the designated products they were interested in.

Consumer Connect has served as a low-cost mobile marketing platform to help ANGEL Cosmetics to engage and interact with its consumers directly and cost efficiently. Without having to incur a huge investment on mobile development, the company is now capable of building and reinforcing customer loyalty to the brands it retails, by way of marketing campaign tactics.

Source: Annual Report 2014, GS1 Hong Kong

Concertina Set

     

                   

Retail success is highly reliant on supply chain efficiency and the operator’s ability to respond quickly and effectively to consumer demands. In 1992, PARKnSHOP - the FMCG retail arm of the A.S. Watson Group in Hong Kong – started its paperless procurement and invoicing process with various suppliers to accelerate its “order-to-cash” transactions.

After several trials, PARKnSHOP began to implement ezTRADE, a B2B EDI platform developed by GS1 Hong Kong, in 1997 to communicate with suppliers. The risks of paper-based transactions, such as intensive paper handling, invoice reconciliation and data inaccuracy for stock replenishment, have been minimized as a result. Moreover, the implementation of ezTRADE has provided PARKnSHOP further support to drive its just-in-time replenishment strategy. All these have enabled PARKnSHOP to achieve considerable sales increase without having to expand its warehousing space. In addition, inventory excess has been largely minimized and the out-of-stock situation reduced by 50%. Overall, the supermarket chain has achieved its vision of providing a quicker and more accurate response to consumer needs. Encouraged by the success, the A.S. Watson Group made the strategic decision in 2003 to extend the EDI facilities to Watsons Hong Kong, and then to PARKnSHOP China and Watsons China in 2008.

Currently, the Group processes 97% of its purchase orders electronically, with over 95% of its suppliers carry out daily transactions electronically on ezTRADE.

Source: Annual Report 2014, GS1 Hong Kong

Concertina Set

           

                   

With the increasing expansion of Dairy Farm Group, it decided tomove its Finance department in Guangzhou, mainland China to manage the huge volume on invoices from suppliers. Prior to adopting an Electronic Data Interchange (EDI) system for invoicing, Dairy Farm used to receive paper invoices from suppliers at its stores. This process could cause delays in settlement due to human error and loss of the paper documents in transit from its Hong Kong stores to its Finance department in Guangzhou. Besides, the manual data inputting process it undertook was also prone to errors. Ultimately, these potential pitfalls and discrepancies would require the company to commit extra resources and manpower to resolve.

To improve the efficiency of its invoicing handling procedures, theGroup developed an automated invoice processing system through ezTRADE in 2009. This allows Dairy Farm’s suppliers to send EDI invoice files to the ezTRADE messaging platform, where the invoicing data are automatically and electronically integrated into their back office systems. It is currently being rolled out across three of its largest retail chains, namely Wellcome, Mannings and 7-11, in a progressive manner, and will also encompass their direct-to-store and warehouse suppliers.

Source: Annual Report 2014, GS1 Hong Kong

Concertina Set

Counterfeiting was a serious problem facing V-Moda when it firstentered the Asian market. In fact, the company received complaints from distributors and loyal customers over the issue, along with a large number of fake products “returned” to them, imposing a severe strain on its customer service.

To address the challenge proactively, a V-MODA APAC team commenced a project to adopt GS1 Serialized Global Trade Item Number (SGTIN) and Product Authentication Solution for all the company’s headphone products earmarked for retail in Asia. A QR code is printed on two labels affixed to each product that serve different purposes. One of the labels is attached to the packaging, on which the QR code is being used to encode the SGTIN. The SGTIN becomes the serial number of that particular product. Using such a code, consumers can access extensive information via the V-MODA website about the product, from the point of its labeling to its packing, pick-up, distribution and delivery to the retail outlet. Just by simply scanning the QR code with a smartphone prior to purchase, customers can download the information from the website, connected to GS1 BarcodePlus.

After the purchase is made, consumers can use their smartphone toscan the QR code found in the user manual where a unique verification code is added for authentication and warranty registration purposes. Once the product is registered, consumers can directly access V-MODA’s Warranty Registration System. Through this Product Authentication Solution, V-MODA has gained not only better control of its product prices and sales channels, but also ways to improve its customer relation management through strengthening consumer loyalty.

Source: Annual Report 2014, GS1 Hong Kong

Concertina Set

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