
YOHO finds retail success by integrating online and offline models, says Franz WU, founder, Chairman and CEO of YOHO Group.
When the YOHO Group launched its e-commerce platform in Hong Kong over a decade ago, online shopping was still a novel concept for many local consumers. However, through the bold vision of founder Franz Wu and innovative use of technology, the homegrown company has emerged as a trailblazer, reshaping the retail landscape and redefining the shopping experience.
The seeds of that success were sown well before the company’s debut. Wu, who is now YOHO’s Chairman and CEO, had previously run a
successful wholesale business in consumer electronics and had a keen sense for what could work.
“By 2013, I saw an opportunity in the growing e-commerce market in Greater China,” he said. “At the time, no one in Hong Kong believed that customers would actually buy online. But I knew that the high rents and limited retail space in the city would make e-commerce a necessity for the future of retail.”
Inspired by this vision, Wu and his partners began to develop a system that would give them a first-mover advantage.
“When we first started YOHO, we knew that innovation and technology would be core to our development,” he said. “We aimed to build a system that could control and automate everything – from inventory management and pricing to customer data and marketing.”
A unified platform
This led to the creation of the YOHO X unified ERP (enterprise resource planning) platform, which synchronizes online and offline pricing and membership data. Central to the company’s success, it made possible a pioneering “OMO” (online-merge- offline) business model that seamlessly integrates physical stores with a robust e-commerce platform, and delivers more convenience and transparency for its customers.
This omnichannel ecosystem catered to the evolving preferences of today’s tech-savvy shoppers – a strategic focus that has not only revolutionized the company’s internal operations but has also redefined the very nature of the retail experience for customers from what was traditionally out there.
"Traditional retailers have long struggled with the challenge of bridging the gap between their online and offline channels," explained Wu. "They've had to contend with siloed data, inconsistent pricing, and a fragmented customer experience - all of which have hindered their ability to truly compete in the digital age. We have overcome these longstanding obstacles with our pioneering OMO model, underpinned by our innovative YOHO X platform."
"Whether our customers are browsing our website or walking into one of our stores, they can be confident that they'll see the same prices, the same product availability, and the same personalized recommendations," said Wu. "This level of consistency and transparency is simply unmatched in the Hong Kong retail landscape."
Moreover, this level of integration has enhanced operational efficiencies. By automating many routines tasks, it has freed up team members to focus on strategic initiatives that create long-term value.
For instance, the company was able to launch a one- of-a-kind YOHO First membership program. By unifying customer data across all touchpoints, the company could develop a comprehensive understanding of shoppers and then tailor exclusive benefits and privileges to keep them engaged.
"Our ability to provide that truly seamless omnichannel experience is a key differentiator for us," Wu said.
A major e-commerce player
Today, YOHO is recognized as a major e-commerce player. It is listed on the main board of the Hong Kong stock exchange and has around 1.2 million registered members and offers a diversified portfolio of close to 100,000 SKUs (stock keeping units). The company employs a 1P (direct procurement) model for electronics and appliances and a 3P (marketplace) model for other categories. Its cross-border business strategy targets high-spending middle- class customers in Mainland China. The broad plan is to continue to push the boundaries of innovation, leveraging artificial intelligence (AI) to enhance operations and the all-round customer experience.
AI-powered innovations
In this respect, one notable recent initiative is the introduction of the YOHO AI assistant – a virtual concierge designed to revolutionize online shopping. Equipped with a range of intelligent features, the AI-driven helper can offer product comparisons, price checks and personalized recommendations.
“We want to empower our customers by leveraging the latest developments in AI technology to provide a 24/7 personal shopping companion and a level of service and guidance that was previously not possible through human interaction,” Wu said.
To achieve new efficiencies elsewhere, YOHO is now using AI to streamline inventory, marketing and logistics, ensuring real-time synchronization and eliminating the potential for human error. Similarly, the company is exploring ways for AI to upgrade its marketing and product curation efforts.
“Our AI tools are constantly analyzing customer data and browsing behavior aiming to identify trends and provide highly personalized product recommendations,” Wu added.
Overcoming early challenges
While acknowledging that YOHO can now see the fruits of its labors, Wu has not forgotten that things were far from plain sailing in the early days.
“The key challenge was overcoming the skepticism around online shopping,” he said. “Hong Kong consumers were accustomed to the in-store experience and were hesitant to embrace the convenience of e-commerce. However, we always believed that the future of retail lay in bridging the physical and digital divide.”
Implementing the OMO model helped to position the company as a key player in Hong Kong’s e-commerce landscape, but the knock-on effects of the COVID-19 pandemic also proved to be a powerful catalyst driving continued growth and evolution.
“The pandemic changed everything for us,” Wu said. “When physical stores were forced to shut and consumers were confined to their homes, we saw a massive surge in online shopping that played directly into our strengths.”
Indeed, new customers started using YOHO’s platform and those previously hesitant to shop online quickly adapted, realizing the convenience and reliability of the service. Of course, the pandemic also prompted many traditional retailers to rethink their business strategies and embrace e-commerce as a vital sales channel.
“We saw a real mindset shift among our merchant partners,” Wu said. “They were suddenly faced with the stark reality that their offline operations were no longer sustainable, and they had to find new ways to reach customers.”
Reflecting on all that’s happened, he was quick to emphasize the importance of continuous innovation. “Innovative technology will always underpin our business success,” he said. “As we grow and evolve, we will continue to seamlessly integrate the physical and digital realms. Doing that enables us to stay ahead of the curve, set a new standard, and redefine the future of retail.”

