HKUST Business School Magazine

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 teammembers 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. Biz@HKUST 25