Business model

BHG switches to a new business model in 2022

BHG Singapore announces transformation plans as it moves into the next phase of its three-year digitization journey.

From 2022, BHG Singapore will advance its integrated commerce journey with a new business model. The company announced that it will launch 2022 by embarking on a new hub-and-spoke business model by expanding its digital offline and online capabilities and focusing more on three physical outlets.

“The past year has shown that our strategy of reinvention has paid off,” says Udai Kunzru, Managing Director of BHG Singapore.

“As a result, we have made progress in paving the way for a new generation of department stores to suit the changing preferences and needs of our shoppers. BHG is optimistic about the sustainability of its growth in Singapore and will continue to focus on further developing its flagship store in Bugis Junction, our two suburban outlets, as well as our e-commerce platform, to deliver an immersive shopping experience. and fully connected. “

Highlights of 2021

BHG has taken a number of milestones this year, with the new Beauty Hall at its flagship store in Bugis Junction with an enhanced priority customer approach offering more intimate in-store store concepts such as spa booths, touch points products such as lift and learn and digital makeup consultations, mobile point of sale, as well as a new café that has reinvented the shopping experience of department stores over the past year.

On the e-commerce front, the company showcased its e-commerce platform, bhgsingapore.com.sg, with click & collect at BHG Bugis and home delivery capabilities.

January 3 will mark one year since the launch of ONE Assembly, the very first collaborative store concept launched by a tenant and an owner – BHG and Raffles City. BHG and CapitaLand will continue their relationship with other shopping centers and extend their partnership through the CapitaStar app and the eCapitaMall platform.

Here are some key figures for 2021:

  • BHG’s brand repertoire grows by 251 new brands in 2021.
  • Year-over-year revenue grew at least 28%.
  • Beauty saw a more than 70% increase in sales value, and the home department also saw high double-digit growth.
  • 13% increase in transaction value year-over-year.
  • Digital elements such as elevator and learning and mobile point-of-sale contributed to an estimated 3-5% increase in the conversion rate in the workshop.
  • Online channels have tripled year over year in sales and orders and over 17% in average cart size.
  • BHG’s in-house fashion brands also increased their sales by more than 19% compared to 2020.

On expanding into the digital space

BHG’s e-commerce platform tripled the number of sales and orders compared to last year between June – November 2020 and 2021 and recorded a 17% increase in year-over-year growth. other of the value of transactions. BHG claims that the exponential growth through the e-commerce platform and 20% membership growth through the e-commerce platform indicates the successful penetration of the brand into buyers’ homes across the island.

“Due to the successes of last year, BHG Singapore will embark on a new hub and department model with the expansion of the experiential store concept into three stores BHG, BHG Bugis, BHG Chua Chu Kang and BHG Bishan as well as strengthening its digital strategies with the e-commerce platform as the hub, ”explains Kunzru.

Digitization has received strong support from Enterprise Singapore and NTUC Enterprise. With this, BHG will execute a complete overhaul of its IT infrastructure and CRM integration, as well as the launch of an updated online shopper journey on the website, which is expected to launch in Q1 2022, A mobile app is also being developed for a better customer experience with new digital touchpoints both online and offline.

What’s next in 2022

The company’s flagship outlet in Bugis will introduce digital touchpoints at levels two and three, housing its home, kitchen, travel and kids categories, as well as its fashion department, in 2022. The two community outlets in Bishan and Choa Chu Kang will also be following in the proven footsteps of its flagship store and updating its merchandise and buying journey with the inclusion of click and collect services that were previously exclusive to the Bugis point of sale. BHG believes the e-commerce platform will complement the physical experiential shopping experience by reaching more communities across the island with home delivery services.

BHG says 2022 will prove to be an exciting year as its plans for reinvention begin to gain momentum.