Over 1.4 million Chinese tourists visited Australia last year, spending on average $8000 a visit. Myer saw this as an opportunity to generate a new revenue stream, and partnered with ThoughtWorks to identify new ways to connect with this previously untapped segment. In January 2017, following five weeks of rapid development, Myer launched a digital engagement platform on top of WeChat, aiming to attract Chinese customers to shop in-store, just in time for Chinese New Year. Pete shared the story behind this innovative new platform as well as the results of the pilot at the 2017 Online Retailer Conference in Sydney. Access the full story here https://www.thoughtworks.com/clients/myer

1. O N L I N E T O O F F L I N E
L E V E R A G I N G W E C H AT T O AT T R A C T C H I N E S E C U S T O M E R S
T O S H O P I N - S T O R E
P e t e r M i t c h l e y - H u g h e s
E x e c u t i v e G e n e r a l M a n a g e r B u s i n e s s T r a n s f o r m a t i o n

2. “In the battle to stay relevant,
organisations have to be capable of changing more
quickly and more comprehensively than ever before.”
Gary Hamel, Associate Professor, London Business School

3. NEW MYER’S FOUR STRATEGIC PRIORITIES
UNDERPINNED BY ORGANISATIONAL CAPABILITY
- Cluster optimisation
- Category optimisation
- Brand optimisation
- Channel optimisation
- Localisation
- Supplier collaboration
- Elevated Visual
Merchandise
- Dwell spaces
- Improved fitting rooms
- Enhanced Myer Hub
- Signature service
- Trained and capable staff
- Targeted customer
engagement
- Strengthen online
proposition
- Online to Offline
- Right infrastructure and
operations
- Store network
optimisation
- Flagship store emphasis
- Right sizing
support office
- Cost focus and
efficiency focus
- Efficient operating model - Technology, processes, systems- Execution focused culture - Strengthened balance sheet
WONDERFUL
EXPERIENCES
CUSTOMER LED
OFFER
OMNI-CHANNEL
SHOPPING
PRODUCTIVITY
STEP CHANGE
2 3 41

4. • Customer centricity
• Relevance
• Technology
• In the service of service
• Online to Offline
• Core Systems & Productivity
• Data
• Business Intelligence
• Personalisation
4
NEW MYER THEMES

5. PRODUCTS AND SERVICES
Current New
Current
CUSTOMERANDMARKETS
New
Current Products sold to
New Customers or Markets
Current Products sold to
Current Customers
New products and Services sold to
New Customer and Markets
New Products and Services sold
to Current Customers
THE OMNI-CHANNEL SHOPPING TRANSFORMATION FRAMEWORK

6. INTERNATIONALEXPANSION
1.4M
Chinese tourists visited
Australia in 2016
$8,000
spend on average,
per person
27.4% p.a.
CAGR prediction of
global cross-border
B2C volume

7. TOOLS & CHANNELS
BEHAVIOUR EXPECTATION
PAIN POINTS
WECHAT PAY
Compare price
between retailers
Buy on behalf
Australian exclusive
products
Chat over WeChat when
making decisions in store
Compile shopping lists
ahead of the trip
Shop with
confidence
Unfamiliar with
store setting
Language
barrier
Sharable
experiences
Hard to locate
products quickly
Fun games
Limited opening
hours
Complex tax refund
policies
Mobile payment

8. TEST & LEARNLeveraging WeChat to attract Chinese consumers to shop in-store

9. 10-WEEKPILOT
MARKET AND
USER RESEARCH
DIGITAL
PLATFORM BUILD
PLATFORM LAUNCH RESULTS ANALYSIS FOR
FUTURE INVESTMENT
Ideate with real customers
and craft meaningful
digital experiences
Prioritise the most feasible
and valuable ideas to build on
top of the WeChat platform
Coordinate stores and brands and
launch the platform for Chinese
New Year travellers Review results prior to
making further
investment
WEEK 0 WEEK 3 WEEK 10WEEK 9

10. WeChat
THE MOST POPULAR CHANNEL TO REACH CUSTOMERS IN CHINA
monthly active users
806million
10million
brand accounts
Data source: KPCB, jing daily
92%
of luxury brands own
a WeChat account 2015 2016
15%
31%
2x
China’s Online
purchases through
WeChat

11. CLICK HERE TO VIEW THE VIDEO

12. INFLUENCERPOST
IN-STORECHINESECOLLATERAL
+CHINESESPEAKINGASSOCIATES
REDENVELOPGAME
INFLUENCER
CONTENT
SHAKESHAKEFORDEALS
ANDOFFERS
REDEEMREDENVELOP
GIFTCARDS
ATTACHADIGITALMESSAGETO
PHYSICALPRODUCTS
PURCHASEDIN-STORE
DISCOVERMYER
WECHATACCOUNT
IN-STORE ENGAGEMENT
+CONVERSION
ACTIVATION
FRIENDSREFERRAL
USER JOURNEY

13. 85%
of gift cards
redeemed
within 2 weeks
RED ENVELOPE GAME SHAKE SHAKE
400%
ROI
28,000
Product offers
were viewed
12
Shakes per visit
(on average)
15.43%
Average daily
growth rate
127,000
Content views
WECHAT ACCOUNT
PILOT RESULTS

14. WHAT THE FUTURE LOOKS LIKE
ANALYTICS AND REPORTING
Customers, conversations, purchases
MAFENGWO
ENGAGEMENT PLATFORM
AWARENESS ACCESS PURCHASE LOYALTY
TRAVEL
AGENCIES

15. Agility - Retailers can innovate quickly and cost effectively
without making a large upfront investment, by collaborating
directly with real customers
Contextual customer learning - Leverage your
store network to test new concepts in a real shopping context
Beyond marketing - Create awareness and
build engagement through valuable services that solve
real problems, not just content marketing
OUR LEARNINGS

16. T H A N K Y O U !
P e t e r M i t c h l e y - H u g h e s
E x e c u t i v e G e n e r a l M a n a g e r B u s i n e s s T r a n s f o r m a t i o n
D o w n l o a d t h e s l i d e s h e r e :
t h o u g h t w o r k s . c o m / t a l k s / m y e r