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RETAILMEDIANETWORKS
HANSHOWNEWSLETTERSISSUEO
CONTENTS
Business Case: Successful Creation of AEON's RMN
2 Retail Media: The Engine Powering Retail's Future Transformation
3 Unleashing the Power of RmNs
The Guide for Retail Media Networks
Project Background
AEON is a leading integrated retail and service enterprise group in Asia, with 19,094 stores worldwide. It operates nearly5oostores ofvariousformatsin China,boasting an extensiveretail network.AEONDigital MediaCenter (DMC), as the IT subsidiary of AEON Group in China, is driving the establishment of a new IT system oriented towards AEON's future omnichannel business.By 2024,AEON DMC will provide both software and hardware supportforin-storeretail media networksand complete theinitialpilotprogram.Itsnewlyopened"AEON Hunan No.1 Store" operates as a General Merchandise Store (GMS) with a shop area of approximately 13,ooo square meters,showcasingstronggrowthpotential.
HanshowTechnology,together withAEONDMC andHarbData,developed a newretail medianetwork.In partnership with Suntory,they promoted various new scenarios such as member acquisition and contextual marketing. The project aims to leverage data-driven marketing strategies, an omnichannel membership system, and efficient advertising reach to enhance sales performance and customer engagement. Meanwhile, in the practice of RMN,Suntory activelyimproves the interconnection of various devices and touchpoints,optimizes omnichannel marketing strategies, and advances the application of RMN layout for better integration into brand marketingstrategies.
I Goals and Challenges (Trial Phase)
·Goals
Challenges
How to accurately reach potential customers and improve advertising conversion efficiency.
How to enhance customer engagementandinteraction ratebeyond traditional promotional methods.How do you easily connect digital mediabuying toin-store advertisement opportunities.
The continuous operation and consumptionconversionof jointmembers.
03 Cooperation Model
· A list of roles played by each company
Retailer-AEON
Brand Owner-Suntory
Digital Solutions Provider for the Retail Industry-Hanshow
Data Support and Analysis - AEON DMC, Harb Data
· Based on AEON's first-party data, insights were generated for the Suntory brand. Brand exposure and user reach were achieved through a combination of online and offline, public and private domain, and in-store and out-of-store touchpoint resources:
Suntory products were introduced in four categories: tea beverages,ready-to-drink alcohol, liquor, and wine, with a totalof 43SKUs.
Hanshow Technology's digital store solutions (including ESLs, smart marketing screens, smart shelves, etc.) wereintroduced tocreate scenario-based marketing throughexclusivebrand shelves, thematic creative displays,joint brand-related displays, and regular point placements.
CombinedwithAEONDMC and the establishment of a "CRM+CDP"joint operation system,realizing joint membership operation between AEON and Suntory.
·Suntory Shelf Interaction Practice (Video to be inserted)
Suntory is actively deepening the application and layout of its Retail Media Network (RMN). Based on the three-ring theory,the company aims to enhance in-store conversion rates by strengthening the interconnection of devices such as Hanshow ESLs, smart marketing screens, smart shelves, and Alipay's "Touch and Go." These efforts enrich touchpoint management within stores, enable seamless online-offline integration, precisely deliver product brand information, meet consumer needs, drive purchase decisions, and optimize omnichannel marketing strategies, ultimatelyimproving operational efficiencyand salesconversionrates.
Strategy Implementation
Key Outcomes
·Project Goals Exceeded
·Comprehensive Coverage by Hanshow Smart Shelves
By installing monitoring devices onSuntory shelves and beverageshelves,customer dwell time and interactionbehavior atboth typesof shelveswere recorded.After data compilation and analysis, it was foundthatSuntoryshelveshadahigherdwellrate compared tobeverage shelves,with shelf interaction ratesbeing40%higher.
TheSuntorybrand achieved 7o5,oo0exposures throughshelf advertising,withtotalrelated category shelf advertising exposures accumulating to3.05million.
.Increase in Product Sales Volume
Overall sales of Suntory categories were approximately 7.21% higher thanthetotalsalesofcontrolstores.
Marketshareof all categoriesperformed better thancontrol stores during the sameperiod.Tea beverages and ready-to-drinkalcohol categoriesshowed significantmarketshare growth.Compared to controlstores,themarketshareforready-to-drinkalcoholincreased by12%,andteabeveragesincreasedby10%.
Long-TermValue of JointMembership
A total of 16,0o0 joint members were recruited. The success of Suntory's member marketing strategy:
13.6%
Non-members contributed 13.6% of sales.
Members contributed 86.4% 86.4% of sales.
Among members,joint 73% members accounted for 73% of sales contributions.
53%
Their average consumption percapitawas53%higher thanAEONmembers.
Case Summary
. The above data and content represent the RMN POC test results from September to November 2024.
· Consumer survey results show that the Suntory in-store promotional area was prominent and well-covered, and the richness of electronic screen content was recognized by consumers. Consumers were particularly interested in newproductrecommendations andpromotional activities.
· The AEON RMN project demonstrated that data-driven, scenario-based marketing and joint membership systems can effectively enhance customer stickiness and willingness to spend. Optimizing touchpoints in retail stores can lead to better transaction conversions and allow for precise evaluation of effectiveness.
· In the future, retailers can continuously optimize RMNs from the following aspects to provide better services and experiencesforbrandsandconsumers:
Optimize product display layout for highly correlated products through in-store retail media,conduct bundling sales orjoint promotions, and strengthen brand promotion.
Utilize technologies such as smart shelves to enhance the focus on customer data converted from in-store retail media, and optimize the methods for data collection.
Selectpromotional locations based on traffic distribution and invest in retail media applications to cultivate consumer awareness of retail media.
"Retail Media transformssurvival challengesintostrategicadvantages"sumsuphowthisemergingchannel is revolutionising traditional retail businessmodels. In an era of unprecedented challenges, retail media has emerged asa transformativeforce,providing avital lifelineforbricks-and-mortarretailerstonavigateand financeseveralkeytransitions.
The retail media phenomenon has experienced explosive growth, with global retail media advertising spend is becoming an extraordinary source of revenue to significantly influence the financing of the transitions required of physical retailers in particular, and developing the resilience of their business model. This remarkable expansion reflects a fundamental shift in how retailers monetise their most valuable assets: customer attention, data, spaces. The convergence of physical and digital retail spaces is creating an unprecedented opportunity to generate high-margin revenue while enhancing the shopping experience.
For example,the award-winning first-party data proposition A360 by the British retail chain Boots connects the 16 million users of the Boots Advantage Card to both Boots' owned and third-party media channels. This allows brandstodeliveraudience-ledcampaignsacrossinstore,online,andoffsitewithprecisionplanning,real-time optimization, and closed-loop measurement within the Al-enabled proprietary software platform Plan Apps, both at a managed and self-service level. It has proven to not only deliver positive short-term conversion in incremental Rol but also achieve good results in measures such as new-to-brand effects, category impact, and long-termcustomervalue.
Retail media is not just anotherrevenue stream -it's the financial and commercial enginedriving thefuture transformationofretail.
Modern retailers face five interrelated transitions that require significant capital investment: commercial transformationtowards omnichannel excellence,economic adaptationto marginpressures,social evolution, technological and store freshness debt and environmental sustainability initiatives.Retail media networks offer a compelling solution by generating the necessary funds while maintaining competitive prices for consumers.
Physical retail remains the dominant shopping channel, with 70% to 85% ofretailsalesstilltakingplacein bricks-and-mortar stores.This reality underscores the particularimportance of in-store retail media opportunities. The strategic placement of digital touchpoints throughout the customer journey serves both operational and promotional purposes, creating a win-win situation for retailers and brands.
Retail Media is no longer a niche; it's a dominant force shaping the future of advertising. In 2023, Retail Media in Europe grew at four times the rate of the total ad market,boasting a staggering 22.1%growthcomparedtotheoverallmarket's 6.7% Thistrendis expected to continue,withforecastsindicatinga 31billion market value by 2028.Fourteen years ago, Keith Bryan of Colosseum Strategy and former President of Best Buy Ads told his board:"Retailers are media companies in denial." Now, it is time for RMNs and Commerce Media Networks (CMNs) to emerge from this denial.Toachieve this,RMNs,CMNs,brands, agencies,adtechcompanies,and industrybodiesmustworkin unisontodrivesignificantadvancementsinRetail Media.
The beauty of retail media lies in its ability to turn necessary operational investmentsintorevenue-generatingassets.
The evolution of in-store technology has revolutionised engagement at the point of sale. Digital displays, intelligent shopping carts and electronic shelf labels (ESLs) create a sophisticated infrastructure for both operational efficiency and advertising. Technology providers such as Hanshow are pioneering integrated solutions that enable immersive, personalised shopping experiences while providing valuable advertising opportunities.
TheRetail MediaEcosystemfostersunprecedented collaborationbetweenretailers,brands,media agencies and technology providers.Each participant brings uniquevalue:retailersprovide customer relationships and physical space, brands provide marketing budgets and content,media agencies provide campaign optimisation expertise,and technology companies provide the necessary infrastructure.
According to McKinsey,sophisticated retail media networkscanincreasebasketsizebyupto20% throughimproved targeting andpersonalisation. Thiscreatesavirtuouscycleinwhichimproved customer experiences drive increased engagement, creatingmorevaluableadvertisingopportunities andadditionalrevenuestreams.
The future of retail media lies in seamlessly blending digital and physical experiencestocreatevalueforallstakeholders.
The retail media landscape continues to evolve, driven by technological advances and changing consumer expectations.Artificial intelligence and machinelearning areenabling increasinglysophisticated targeting and measurement capabilities, while new display technologies are creating more engaging in-store experiences. Success depends on a careful balance between advertising revenue and customer experience, requiring sophisticatedtechnologyplatformsandcareful attentiontocontentrelevance.
As margins in the traditional retail sector continue to come under pressure,retail media is more than an additional revenue stream- it's a strategic imperative for survival and growth. The ability to generate high-margin revenueswhile improving the customer experience and driving operational efficiencies makes retail media uniquelypositioned tofund thenecessarytransitions inretail.
Retailersthatsuccessfullybuild and monetise theirmedianetworkswhilemaintainingafocus on the customer experiencewill bebestpositioned to thrive in the evolvingretail environment.Thematuring ecosystemisdriving innovation through deeper collaboration between retailers, brands,agencies and technology providers,creating new opportunities for value creation across the retail industry.
Retailers that successfully build and monetise their media networks while maintaining a focus on the customer experience will be best positioned to thrive in the evolvingretail environment.Thematuring ecosystem is driving innovation through deeper collaboration between retailers, brands, agencies and technology providers, creating new opportunities for value creation across the retail industry.
As retail media continues to evolve and grow, more channels and formats become critical parts of the overall media mix.A certain global advertising industry organization provides valuable insights for most campaign needstostandardizeallretailmediachannels:
In-store presents a significant growth opportunity, capable of capturing budgets from linear TV and outdoor advertising. Investment in technology and standardization is key.
IAs in-store moves towards programmatic infrastructure, CPM transactions will become crucial, necessitating adjustments to the definition of CPM.
In-store retail media advertising will drive future growth for the third wave of major digitaladvertisingtrends.
Thistransformation ofretail media froma simple advertising channel toa strategic toolisenabling retailersto engineof.transformation."
It's Time to Act: A Major Land Grab in Retail Media Networks
Retail media is a massive market. it will be worth 25 billion in 2026, twice what itwasin2023.
ReweGroupCEOLionel Souque
· The retail media market will grow by 25% per year to $ioo billion over the next five years and will account for over 25% of total digital media spending by 2026.
·Brands are increasing their budget allocations for retail media, with 7o% of advertisers believing that the ad effectiveness of retail media channels surpasses other digital ad channels. It is expected that 69% of advertisers will increasetheirRMNadspendingby2025.
· 73% of advertisers anticipate spending more on RMNs in the next 12months, with RMNs capturing an estimated 10 to15percentoftotalmediaspend.
RMN Ads Excel at Capturing Consumers' Attention and Motivating Purchase Decisions
The Matthew Effect in the RMN Field Becomes Prominent
· The U.S. is ahead of the EMEA region in terms of the maturity of RMNs development and has a higher acceptance of RMNs. In the U.S., 73% of respondents believe that RMNs outperforms other alternative channels, whereas only 51% of respondents in the EMEA region share this view.
·In-store retail media in the U.S.is growing at a rate of 45.5%
·Walmartmarketplacedrivesretail mediagrowth Walmart Connect's US business grew 26% in the latest quarter. Walmart's US ad revenues will grow 31.6% in 2024.
Breaking Through: In-Store Media Still Holds Its Ground
22%
Spending by advertisers on retailers' owned channels will grow at a rate of 22% per year overthenextfiveyears,withrobustmarginsof 7o%to90%.
81%
81% of respondents believe that Advertising Cost of Sales (ACoS) and Return on Advertising Spend (RoAs) are the most important metrics for measuring the success of RMNcampaigns.
84%
According to a July2024 report by in-store advertising provider Vibenomics, currently 84%ofretailsalesstill occurin-store.
·Build a strong digital footprint with a RMN.
Capabilities
Increase Retail Media revenue through a tailored in-house program
Expand digitalreal-estate and capabilitiesto capture advertising dollars
Key Areas to Focus On and Invest in RMNs
·Building anIn-Store Retail Media Alliance
Fully leveraging in-store retail media, such as ESL, digital screens, smart shelves,and smart carts,will improve metrics for grocers' brand and advertiser partners,particularly incremental Return on Advertising Spend (iROAS).
Providedetailed advertising reports to RMN partners and conduct closed-loop measurementof the transaction data required bybrands from RMN partners.
Even in its nascent stage of adoption, 1 in 4 shoppers report trying a new product or buying an unplanned item based on the influence of anin-store digital screen - skewing even higher among younger generations.
Kroger added digital smartscreensto500 of itslocations.
·Alandcommercemediaaretwoareasthatneedtowatch
According to data from Statista, 48% of responding brand owners, marketing decision-makers, and agency decision-makers from the U.S. reported they anticipated that Al would improve their retail media targeting and biddingstrategiesinthefuture.
More than half (5o.8%) of ad buyers have a strong interest in working with non-retail commercemedia networks, like ones from travel and payments companies.
I Exploration of RMNs in China
AbundantResourcesinOfflineRetailStores
· Beijing has 41ll urban stores per 100,000 people, higher than New York City's 370 stores. · The per capita commercial operating area in Beijing is roughly equivalent to that in New York, both being 2 square meters per person.
LowConcentrationintheOfflineRetail StoreMarket
·The market share of the top3 offline retailers in the U.S. is as high as 64%, while in China it isonly 72%
ImplementationPathwaysforRMNModelsinChina
·Build aofflineretail mediaalliance and create a comprehensivemediaenvironment.
·Promote omnichannel precision marketing to form a closed loop of online traffic acquisition and offline conversion.
·EstablishaprogrammaticmanagementplatformforRMNs.
·Develop an independent, multidisciplinary team for RMNs.
Addressing Pain Points in Developing RMNs
· The expense of outfitting stores with thenecessary technology to both display ads and measure attribution.
·Marketerswantfull-funnelsolutions.
· 66% of consumers are concerned or very concerned about their data privacy in RMNs.
· Factors such as complex operational management processes have led 44% of advertisers to plan to avoid addinc newpartnerships.
·Retail media expands toin-store there will be questions and opportunitiesforbrandsto createpartnerships or scale their shopper marketing programs in-store more efficiently.This is because in most organizationsretail media is still isolated and purchased separately from team members that manage in-store promotions and shoppermarketingprograms likedisplays.
· Limited activation options, Limitations of on-site ad space, and high costs are three significant barriers.
Key Takeaways
· RMNs garner high spend and return
·Regional Variations Highlight Need for Targeted RMN Adoption and Growth ·Preparing StrategiestoDemonstrateRMNsValue
·Beyond Walled Gardens: Establishing Transparent Performance Evaluations
Only 23% of retailers share data in real-time, while 56% share data only at the end of a campaign. AccordingtodatafromStatista,duringasurveyconductedwithbrandsworldwideasofthefirst quarter of 2023, Brands valued treats such as transparent and advertiser-verifiable measurement, amountof inventoryavailable,andqualityofadvertiserexperience.
RMN Margin Is a Strategy Game Not Table Stakes
· Global retail media advertising spend hit 140 billion in 2023, and is forecast to be more than175 billion by 2028.
· Over the past 18 to 24 months, new RMNs by Tier 1 and Tier 2 retailers have been established globally across allretail segments.
· In 2023, leading retailers' RMN services generated revenue growth rates of 10% to 30%, illustrating RMN market's interest as a newlyestablished digital advertising method.
Mediasales revenue hasthepotential to offerhigher marginratio,subjecttobusiness model,compensating the challenging physical product margins. This was true, for example, for U.S. retailer Target's ad business. In 2023, its media service Roundel generated $i.5 billion in“value"and, according to the CEO of Target, benefited Target's grossmarginsmorethan itsrevenue.
The Roundel ad business benefited Target's gross margins more than its revenue. —TargetCEoBrianCornell
What's Trending in RMNs?
·Retailers are re-evaluating their RMN technology approaches to enable growth ·Physical Store Technology Extends RMNs' Opportunity Beyond Digital Touchpoints (Leveraging store technology - for example, digital signage, smart shelf, scanners and point-of-sale terminals — to display in-store ad inventory, capitalize on store traffic, raise impressions and yields, and offset costs of maintaining commercial real estate.) · Upskilling and hiring for retail media roles to keep pace with RMN market developments
03 Why Retail Media Networks and Why Now?
·Retail MediaDeepensCollaborationOpportunitieswithBrands
Why Should Retailers and ClOs Take Note?
■RMN OpportunitiesIncrease Conversion
·34% of Consumers report that an in-store advertisement led them to make a purchase · 27% reported that an advertisement on a retailer's website or mobile app led them to make a purchas (Source: 23Gartner Consumer Omnibus Survey Q4)
RetailersareRealizingRetailMedia'sValue
·39%of ClOs are maintaining investment levelsin2025 ·54%ofClOsareincreasinginvestmentin2025 (Source: 2025 Gartner CIO and Technology Executive Survey)
In-storeInvestmentsContinuetoKeepPace
·38% of ClOs are maintaining investment levelsin2025 ·55%of ClOs areincreasinginvestmentin2025 (Source: 2025 Gartner CIO and Technology Executive Survey)
■ForRetailers
·A viable,new revenue stream · Securing the business' long-term viability · Compensates for thin product margin ·Strengthens customer trust · Offsets costs of physical retailing
■ForClos
· Alignment with business strategy ·Bringing thought leadership · Technology to enable data monetization ·Establishing a technical execution foundation ·Utilization of digital and physical assets
Holistic Revenue Considerations for RMNs
Planned Retail Investment Strategy: In-Store Technologies
Percentageof RetailRespondents
11 ○ 2024 Gartner, : All nights reserved
Gartner.
·79% of retail ClOs report that they intend to invest in a net increase in their number of stores.
· 69% indicate they plan to increase store technology investments in absolute budget value.
·71% plan to increase spend on store technology investments as a ratio of overall digital spend.
Digitalization of the physical stores must align with customer-centric approaches across physical and digital touchpoints.Product leaders who can demonstrate their expertise in creating consistent and long-lasting approaches will be in a better position to capitalize on the trends in this category.
Recommendations
·Audit your existing advertising and marketing technologies' capabilities that support RMNs, in collaboration with the CMO, to understand what you would be replacing if investing in technologies for RMN.
· Evaluate in-store assets and collaborate with marketing teams to develop a portfolio of devices available for ad opportunities.
· Collaborate with the Data & Analytics team to identify sources of data within the organization to establish, enhanceorscaleRMNoperations
References
1.Howretail media isreshapingretail. BostonConsulting Group.Retrievedfrom https://www.bcg.com/publications/2022/how-media-is-shaping-retail
2.The riseof retail media:What to expect in2024.DoubleVerify.Retrieved from https://pub.doubleverify.com/blog/the-rise-of-retail-media-what-to-expect-in-2024/
3.Sixsecretsofunleashingthepowerofretailmedia.Mckinsey.Retrievedfrom https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/six-secrets-of-unleashin g-the-power-of-retail-media
4.Research:DrivingROlinRetailMediaNetworks.IntegralAdScience.Retrievedfrom https://integralads.com/insider/retail-media-networks-maximize-roi/
5.WhatWalmart's,Target'sQ3earningsmeanforretail media.Emarketer.Retrievedfrom https://content-naf.emarketer.com/walmart-target-q3-earnings-retail-media
6.CPGad-buying patterns hint at the greaterretailmedia ecosystem'sfuture.Emarketer.Retrieved from https://content-naf.emarketer.com/cpg-ad-buying-patterns-hint-greater-retail-media-ecosystem-s-future
7.Special ResearchReporton RetailMedia.China Chain-Store &FranchiseAssociation.Retrieved from https://mp.weixin.qq.com/s/jcMzPi75ppshkcmlEZzzLQ
8.In-store Retail Media Definitions And Measurement Standards.Interactive Advertising Bureau.Retrieved fromhttps://www.iab.com/guidelines/in-store-retail-media/
