Retailers look to cyber marketing to attract 'gen ME'

“Twenty per cent of Tesco Lotus’ 12 million customers are people in ‘gen ME’, aged 15-35, who potentially prefer online shopping, online information searching,” Wanna Swuddigul, chief marketing officer of Ek-Chai Distribution System, the operator of Tesco Lotus in Thailand, said yesterday.

The company has just launched an online shopping mobile application called “Tesco Lotus”. 

The retail business needs to expand marketing to cover digital and online channels since customers, especially the younger generations, are familiar with online  and like to search for information on products via the Internet. 

This is the first year for Tesco Lotus to focus on digital marketing. It is spending 20-30 per cent of its marketing budget on cyber marketing and new media including Facebook, Twitter, its website, YouTube and mobile applications. 

“We have six types of channels – department stores, hypermarts, Lotus Extra, Lotus Talad, Lotus Express and Lotus online. We just started our online channel early this year and this type of channel contributes less than 1 per cent of revenue. We hope it will contribute more in the future. 

“In the mature markets, for example, the UK, online shopping also contributes about 10 per cent of the total retail industry,” he said.

Lotus Express accounts for about 1,300 branches, while the other brick formats have a combined 300 branches.

The important part of online shopping is the backup system including stock and inventory management, logistics and delivery services, and the payment system. 

“At every branch of Tesco Lotus, we have a dedicated space for online inventory. Once customers make an online purchase, we will assign the nearest branch to deliver products,” he said.

The Tesco Lotus app adds a feature module called “scan me” to allow shoppers to scan the company’s advertising in newspapers, magazines and brochures to reach multimedia advertising as well as promotions. “Now, it is time for the retail business to have a presence in the online world. If we do not go online and go digital, we will lose business opportunities,” he added.

Central Department Store just updated its app on October 2. 

Big C Supercenter offers a fully-integrated online shopping service. Customers nationwide can access Big Service Online Shopping via smartphones, computers and telephones. 

Sarintip Satitsatian, vice president for business development, said the online service covers both end-users and wholesalers, who can buy in bulk via Big C Jumbo Online. 

“We offer both in-store promotion items as well as exclusive online promotions and carry over 10,000 SKUs (stock-keeping units) of high-demand items. We offer free delivery, in-store pick-up and a pilot drive-through station at the Phetchakasem Extra store,” she said.

Big Service online shopping covers the whole country. Free delivery services are available at over 60 stores in greater Bangkok and selected major provincial centres such as Khon Kaen, Pattaya, Udon Thani and Chon Buri. 

In the first nine months of this year, Big C Online Shopping has grown both in transaction numbers and sales by over 300 per cent and has already exceeded its targets. Over 1.5 million customers visited its online marketplace. The company has seen over 120,000 mobile app downloads and expects to reach 150,000 this year. 

“We believe e-tailing, e-commerce and m-commerce are the trend of the future, particularly after 3G and better telecommunications technology are in effect. We will constantly develop our service and promote awareness and trials to maintain our leadership on the online front,” she said.