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48 The three main benefits from customer data outlined in the last section - empowering innovation, mass intimacy and the welcome end of junk mail - are not restricted to the Western world. Even in developing markets, a personalised retail strategy rather than one focused purely on low prices is reaping success. Customer- centricity doesn't have to be restricted to one market - it can be adapted in different countries across the globe. In Asia, Tesco has carefully crafted its commitment to customers to ensure it remains relevant from market to market. Tesco has stores in South Korea, Thailand, China, Japan and Malaysia. In South Korea, Tesco operates under the Homeplus banner and was established through a joint venture with Samsung in 1999. In Thailand, Tesco Lotus is the top retailer in the market, serving 6m customers a week through its 476 stores. Tesco launched in China in 2004 and now serves 3.7m customers a week through its 58 stores. Today, Tesco runs the Clubcard in Malaysia, a ' Familycard' in South Korea, a ' Membercard' programme in China and is testing a loyalty programme in Thailand. ' Every Little Helps', Tesco's shorthand for its promise to customers has been adapted slightly across Asia. In Thailand, for example, Every Little Helps, reads in Thai as ' Rao Sai Jai Khun' or ' We put our heart to serve you'. Innovations trialled in the UK are also being rolled- out internationally as Tesco awards Green Clubcard points in Malaysia and South Korea. In China, the Tesco promise the ' aisles are clear' is replaced with ' Shopping is pleasant and easy'. This is because Tesco's Chinese customers love the ' market' feel - busy shops and aisles with lots of promotions, across its 58 stores, so the original promise is no good. There is also an extra promise, ' I can trust what I buy', which is essential in China. From sunshades to the wet market Some of the ways Tesco has adjusted its offering are clear to see even from the car park. For example, in many of these markets, shoppers are more likely to be on their motorbikes or scooters than in a car, this means they will buy less and shop more frequently. any colour you like as long as it's any colour you like 49 global market Similarly, the heat means that Tesco must build sunshades for vehicles in its car parks. The attitude to parking in Thailand is very relaxed. Shoppers leave the handbrakes off in their cars so other drivers can move their car if needed. It's not unusual to see whole lines of cars being pushed around the car park to enable a shopper to leave the car park. The entire Asian shopping experience is also very different from Tesco in Europe. In Korea, like China, shoppers are used to shopping in wet markets, a chaotic, noisy environment a whole world away from the calm, airy, clear aisles in Tesco, UK. Therefore, Tesco Korea recreates the atmosphere of a wet market. It sells live fish and shellfish. Korean shoppers would have found the supermarket too boring and quiet otherwise. Similarly, Tesco China reflects the range of fresh produce that Chinese shoppers have always sought. In Malaysia many consumers will hang out for a whole day in a shopping mall. Tesco has built an entire mall in this market and leased out other areas to lure local shoppers. There's even one Tesco in Malaysia with a cinema! Cutting prices Analysis of Asian customer data helped Tesco ensure it was reducing prices for products that less affluent shoppers cared about. Price sensitive customers tend to be a larger group in China ( 32%) than the UK ( 25%). This strategy has seen Tesco reduce prices for thousands of products. In comparison, 17% of Korean shoppers, 23% of Malay shoppers and 24% of Thai shoppers are price sensitive. In China, it's crucial that the price is right for a number of particular products. Eggs, for example, are a deal breaker. Analysing data ensures Tesco strikes the right prices. In South Korea, the most price- sensitive products are the fresh produce. In Thailand, the price rollback on thousands of products was the first time the country's supermarket had cut the prices of products customers really cared about, rather than the products they could afford to cut. In Malaysia, Tesco must ensure that its special offers appeal to the three main ethnic groups in the market - Malay, Indian and Chinese - who all tend to shop in different ways. |