August 20, 2024 | Retailers
Paraguay-based Shopping China, a leading retailer in the South American duty-free market, has launched a series of strategic initiatives to expand its market presence and increase customer loyalty. CEO Felipe Cogorno said the company will implement both physical and digital strategies, with “an unwavering commitment to delivering an exceptional shopping experience that drives us to continuously adapt, innovate and transform, with customer satisfaction as our number one priority.”
The company has ambitious expansion plans for the future, with Cogorno explaining: “Our strategy is focused on both geographic expansion and strengthening our current operations to better serve our customers.”
Shopping China is targeting key markets in South America, with a focus on customers in Brazil and Argentina. Cogorno explains: “We are actively exploring opportunities to expand our presence in key border markets in South America, specifically targeting customers in Brazil and Argentina, who have a large consumer base and strong demand for duty-free products.”
A key development in Shopping China’s plans is its investment in a new state-of-the-art facility in Ciudad del Este (pictured above). The project underlines the company’s dedication to providing a superior shopping experience and solidifies its position as a leader in travel retail. Cogorno said: “At over 92,000 square metres, the store will be the largest border store in South America.”
In addition to this major development, Shopping China continues to renovate and expand its existing stores. These improvements include upgrading store layouts, incorporating advanced technology for a seamless shopping experience, and enhancing the aesthetics throughout the retail space.
Consideration for consumers
Customer experience is at the core of Shopping China’s strategy, with a focus on personalization and technology integration. Cogorno explains, “We are focused on enhancing the overall shopping experience through personalized service, loyalty programs and innovative in-store and online experiences. By employing advanced data analytics, we are able to provide customized recommendations, promotions and shopping experiences that are tailored to each individual customer’s preferences.”
“This customer-centric approach, coupled with our leverage of cutting-edge technology and expanding our digital presence, aims to strengthen our leadership in the retail industry, expand our foothold in new markets and continue to meet the evolving needs of our customers,” Cogorno added.
Pushing technology forward
Shopping China is significantly enhancing its digital and technology capabilities to keep up with market demand. The company is focused on creating a seamless multi-channel experience featuring an intuitive interface, fast navigation and easy product access. It is also expanding its digital footprint with a focus on social media, aiming to deepen customer engagement through interactive campaigns, influencer partnerships and real-time support.
Investment in digital infrastructure is also a key area, including building a more robust online platform and expanding digital marketing efforts. These efforts aim to improve customer engagement through customized recommendations and promotions powered by AI and data analytics.
Central to this strategy is the use of advanced technology. “Leveraging advanced technologies such as artificial intelligence and data analytics will optimize operations, improve inventory management, personalize customer interactions, and increase overall efficiency,” Cogorno notes. By employing AI for data collection and analysis, Shopping China will be able to better understand and respond to customer needs, facilitating personalized shopping experiences and optimizing inventory management.
A key aspect of Shopping China’s digital transformation is working with leading technology companies. “One of our key partnerships is working with leading technology companies to drive our digital transformation. By integrating cutting-edge AI and data analytics solutions, we aim to enhance customer experience through personalized shopping recommendations and streamlined operations,” Cogorno explains.
Generation Z
Shopping China is acutely aware of the changing consumer landscape, particularly when it comes to Gen Z. Cogorno highlights the key behaviors and preferences that drive the company’s strategy: “Gen Z values speed, convenience and accessibility during their shopping journey. They are environmentally and socially conscious, and prefer brands that are committed to sustainability and ethical practices.” He also notes that this generation values personalized experiences, authenticity and transparency from brands.
Social media plays a central role in Gen Z’s shopping decisions. “They engage with brands through social platforms and want interactive, immersive experiences,” says Cogorno. Reflecting this, Shopping China has increased its presence on major social media platforms to produce engaging, interactive content, including partnerships with influencers, live shopping events and customer engagement through various digital channels.
Additionally, the company is leveraging strategic partnerships to bolster its social media efforts: “We also collaborate with leading influencers and content creators across various social media platforms to increase brand awareness and engage more effectively with our target audience,” Cogorno noted.
Brazil border
Shopping China’s success on the Brazilian border is down to a multifaceted strategy based on a deep understanding of its customers. “Strategic locations, competitive pricing, diverse product range and outstanding customer service are the key factors that have enabled Shopping China to successfully attract and retain its Brazilian customer base,” he says. The company’s 90-year history has also helped it build a strong reputation that enhances the quality of its services.
Recent changes in Brazilian regulations have had a noticeable impact on Shopping China’s business. “Since the increase in Brazil’s deduction amount, we have seen a surge in Brazilian customers, further increasing the demand for a variety of products,” reports Cogorno, who identifies the main products sought by Brazilian customers as “electronics, perfumes, cosmetics, fashion items and household goods.”
Sustainability and CSR
The company is firmly committed to sustainability and ethical practices, focusing on “sourcing environmentally friendly products, reducing waste, and implementing energy-efficient operations.” These efforts are effectively communicated to customers, ensuring their values are aligned with global environmental standards.
Sustainability is integral to the company’s regulatory and market strategy. “Our sustainability efforts are a cornerstone of our business strategy, significantly enhancing our brand reputation and fostering deep customer loyalty,” said Cogorno. These efforts not only ensure regulatory compliance, but also meet growing consumer demand for sustainable products.
Corporate social responsibility (CSR) is also a key focus. Cogorno said Shopping China’s “CSR initiatives support local communities, promote ethical business practices and contribute to social causes.” Through community projects and partnerships, the company demonstrates its commitment to making a positive impact beyond its business operations.
Partnerships play a key role in sustainability efforts. “We have forged alliances with renowned eco-friendly product suppliers to strengthen our sustainability efforts,” Cogorno said. These collaborations expand Shopping China’s lineup of sustainable products, further aligning it with environmental goals and consumer expectations.
Building on its commitment to corporate social responsibility, Shopping China extends its ethical focus internally, where Cogorno emphasizes that employee satisfaction is directly linked to exceptional customer service. “A key component of our success is the satisfaction and commitment of our employees. We prioritize fostering a positive work environment, which translates into exceptional service and a pleasant shopping experience for our customers,” Cogorno explains.
Employee training is a key element of Shopping China’s strategy: “We invest in comprehensive training programs to ensure our employees are up to speed on regulatory requirements and market trends so they can make informed decisions,” Cogorno says.
Products and Trends
Shopping China prioritizes staying ahead of market trends. “Our product development team continually evaluates and updates based on customer feedback and market research to ensure relevance and demand,” Cogorno notes. This approach enables the company to anticipate consumer preferences and adjust its product offerings and marketing strategies to stay competitive.
Product diversification is also a key focus, including expanding premium products, increasing high-tech inventory and expanding the selection of eco-friendly and sustainable options.
The company’s approach goes beyond product offerings, emphasizing quality and customized marketing strategies. “Our commitment to providing high-quality products, coupled with a customized marketing strategy and seamless shopping experience, has significantly strengthened our appeal in this market,” Cogorno explains. These efforts have helped the company meet the changing needs of Brazilian customers, increasing their loyalty and satisfaction.
Rules
Navigating the complex regulatory environment and market trends of the South American duty-free market is a key aspect of Shopping China’s operations, and Cogorno outlines the company’s multi-faceted approach to these challenges.
“We strictly adhere to local, national and international regulations, and our legal and compliance teams work closely with relevant authorities to ensure all our operations comply with current laws,” Cogorno said. This commitment to compliance is complemented by strong relationships with key stakeholders. “Building and maintaining strong relationships with suppliers, government agencies and industry stakeholders allows us to stay informed and proactively respond to regulatory changes.”
A holistic approach
Cogorno highlights the holistic nature of Shopping China’s approach, integrating digitalisation, customer satisfaction, product innovation, sustainability and CSR: “This comprehensive strategy enables us to remain adaptive, competitive and successful, and to continually respond to and shape the ever-changing market environment,” he says.
Looking to the future, Cogorno revealed efforts to support Shopping China with a range of strategies to boost customer satisfaction and operational efficiency: “We are exploring partnerships with logistics companies to optimize our supply chain, speed up delivery times and reduce the carbon footprint of transportation.”
Cogorno highlighted the strategic importance of such partnerships and collaborations, saying, “They are central to our growth strategy, enabling us to innovate, expand our product offerings and better serve our customers. By leveraging these relationships, Shopping China is poised to continue to lead the retail industry and meet the evolving needs of our customers.”
Region America