United Business News: On May 27th, Yonghui Group has opened its 18th Yonghui O2O experience member store on Shanghai Jinding Road. This brand new model of supermarket has drawn a lot of attention in retail ever since the first Yonghui member store opened.

The average Yonghui member store is about 200 square meters and sells nearly 1,000 kinds of selected commodities which target high-end consumers. In addition to the traditional merchandise, Yonghui member stores also offer catering, housekeeping and many other services. Customers can even cook directly with the ingredients sold in store and fully enjoy the fun of shopping.

Fresh food accounts for 25% of commodities, and will increase to 30% in the future; imports now account for 40% and will increase to 50%. Customers can also purchase global products offline in the store.

As a new business model, the Yonghui member store is a bold adaptation of Omni-channel retail. In order to meet the various needs in Omni-channel, Yonghui introduced Hanshow electronic shelf labels (ESL) into Yonghui O2O system. As the essential part of O2O, Hanshow ESL system connects and synchronize online offline data.

Actually, the ESL is not as simple as it seems. It synchronizes online prices and stock information with offline prices and stock information in real time, which make shelf management possible. Additionally, this will increase the delivery efficiency. The delivery staff will be able to use the ESL system to locate and find products.

In the last six months, Yonghui has opened 18 member stores in Shanghai and received 80,000 member registration and 10.000 VIPs. It is very important to provide better membership management and experiences in offline stores. Hanshow ESL therefore has played an important role on helping Yonghui member stores improve efficiency and realize Omni-channel.

After some research, the reporter finds out the Hanshow ESL does not only changes the image of Yonghui stores, but also functions as the media for every feature in the Omni-channel.

Firstly, the Hanshow ESL synchronizes online offline prices and displays synchronized stock information. This is the primary step for Omni-channel. Because online prices update frequently and offline prices just cannot cope with the frequency if using paper tags. This can cause big problems for retailers. By using Hanshow ESL, offline price updates are easily updated online. Additionally, Hanshow the ESL system also streamlines the daily promotion activities for the fresh food area.
Secondly, the Hanshow ESL system has made the shelf management possible. In Yonghui member stores, the location of commodities often change and Hanshow labels are associated with every shelf location. Store staff locate the label position based on the layout map provided by headquarters and place commodities based on the information displayed on ESL.

Except for the functions mentioned above, the coming third-generation Hanshow ESL will continually increase Yonghui logistic efficiency. The Yonghui door-to-door service is very much reliant on the store in the neighborhood, therefore it is crucial for delivery staff to find products quickly.

So how to achieve effective sorting, packaging and delivery? The biggest barrier was to locate products quickly and the traditional method was to search for them by naked eyes. The Hanshow ESL background system could help locate products quickly. Meanwhile, the third generation Hanshow ESL has three different colors of LED indicator. Stores can use different colors as a reminder or an alarm. The lights can even work as indicator for directions in order for delivery staff to find products as quickly as possible.

Thirdly, the ESL screen does not only show product information, it can also display QR code. When customers scan the QR code with their smart phones, more information about the product can be found.

In the near future, Hanshow will provide data analysis services to retailers based on the sales data via its cloud platform. By having the analysis, retailers will be able to have better understanding on customer buying behavior and retailers will have more interactions with customers. Hanshow ESL system connects online offline information. Therefore, when an online customer shops in a store, the system advises the store to send customer the promotion information based on their buying habits.

For Yonghui group, the member store also plays a role as the station for picking up goods purchased online. The real potential in this O2O model is that the offline customers can be attracted to online and conversely online customers can be attracted to the store. Each Yonghui member store is a station for all kinds of door-to-door services in retail.

 

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