- Categories:Retail Insights
- Author: KT Wu
- Origin:Hanshow Retail Academy
Cross category retailing, a trendy phenomenon, has been in its active development since shopping experience is much more valued than ever before. Retailers have been working hard on attracting shoppers through reshaping the values of brick and mortar stores. Identifying the precise needs/ shopping occasion and ensuring the collaboration of different categories/brands are among the key things to consider for some retailers in China today. Here are some of the examples:
Convenience Store Chains Lawson Create Immersive Experience Through Cross Category Cooperation With IP Theme
Lawson opened a lot of IP Theme Stores in China in the past ten years through cooperation with different IP images, such as Ultraman, Conan, Barbie, Doraemon, Hello Kitty, Teddy, etc. In order to ensure different IP synergize with its target market, Lawson built an IP Image Matrix to position different IP images by setting gender as horizontal coordinate and age as vertical coordinate. (See the matrix as below)
Lawson cooperates with IP mainly in four ways:
1. Promotion-based activity, shoppers collect points through in-store purchase, and use them to redeem IP related products, this kind of activities usually lasts 1-4 weeks.
2. Store remodeling, which may include VI /POSM design and IP product update, usually lasts 1-3 months.
3. IP Theme Store, the duration of store operation usually lasts 1-3 years depending on specific licensing agreement.
4. Strategic cooperation with IP brand, on top of cooperation on merchandising and IP licensing, Lawson also work closely with the IP partners to provide much more comprehensive marketing activities to enhance shopper engagement.
Lawson has been working on leveraging IP attraction to drive traffic, providing surprising experience to improve shopper satisfaction. All the efforts are aimed to build younger brand image to its shoppers and sustainably drive the business growth.
HEMA Opened HEMA Garden To Upgrade Its Flower Business
HEMA has opened 8 HEMA Garden stores in Beijing and Shanghai. According to HEMA, nearly 30% of HEMA’s users purchase flower frequently, 58% of which buy flower on line, and 34.8% have monthly purchase frequency of 1-3 times.
Lv Yan, who is in charge of HEMA Garden’s merchandising, said gifting consumption is still the main motivation in flower category recently, but HEMA intends to drive for those shoppers who regard flower consumption as habitual life-style.
One month ago, HEMA reached a strategic cooperation with Kunming International Flower Auction Trading Center, in order to set up a flower supply chain corporation. Kunming International Flower Auction Trading Center is the biggest Flower Auction Trading Center in Asia measured by transaction size. HEMA’s flower supply chain corporation would integrate much more upstream vendors in flower growing, and provide values in processing, warehousing and delivery.
Tim Hortons And Tencent Opened Esports -Themed Coffee Shop
Multinational coffee chain Tim Hortons has collaborated with Chinese video game company Tencent to open an esports-themed coffee shop in Shenzhen on August 18. Social engagement and youth culture in esports areas are harmoniously merged into Tim’s store spaces, the coffee shop offers shoppers the full esports experience with themed beverages, a screen for watching esports competition, a dedicated esports zone where shoppers can simulate and experience esports, as well as interactive spaces such as a giant table where shoppers can view the development history of esports.
While waiting for beverages, shoppers could spin the Maker button on the interaction table to browse lots of esports teams and updated esports competition. What’s more, shoppers could join in H5 esports game on mobile phone to win coupons and esports accessories, which also bring much fun experience for shoppers in store.
BianLiFeng Rapidly Expands Its In-store Coffee Brand [Sober Hi]
BianLiFeng’s coffee brand Sober Hi entered Jinan on September 7, until then Sober Hi has opened 337 stores in total covering 6 cities in China. Sober Hi aims to provide coffee shop level freshly brewed coffee at a lower price with range of RMB 10-20, which is very attractive to office workers.
According to Deloitte’s White Paper On China’s Freshly Brewed Coffee Industry released in April 2021, due to the fast-paced work environment in 1st and 2nd tier cities and Luckin’s cultivation of coffee drinking habits over the past three years, more consumers have gradually become habitual coffee drinkers, and the proportion of coffee consumption in "fast coffee" scenarios has gradually increased. “Fast coffee" scenarios now account for 70% of consumption of freshly brewed coffee. In response to consumers’ need for speed, channels such as convenience stores and office coffee machines have gradually emerged and penetrated some unique scenarios. For example, people can easily have freshly brewed coffee when they buy breakfast in convenience stores or when work overtime in the office. These channels have successfully occupied a position in the market for freshly brewed coffee.
Cross category retailing is not simple copy or merge. Retailers have to put great efforts on finding the brand value proposition in common to make cross category efforts possible and productive. In a way cross category retailing is a “social engagement” between retailers brands – they, the retailers, need to work harmoniously to please their customers, together. And hopefully 1 plus 1 will be greater than 2.
Scan the QR code to read on your phone