Transformation Consulting

Consumer and Retail

Recently, the consumer goods and retail market has shown signs of consumption recovery. Looking ahead, expanding domestic consumption remains a key focus for the government. Currently, the consumer markets are highly competitive, and companies are experiencing unprecedented disruptions. However, businesses continue to prioritise customer-centric strategies and leverage technology to deliver seamless online and offline retail experiences, showcasing their competitive advantage.

KPMG serves the consumer and retail industry globally, bringing together our global network to deliver consistent, high-quality professional services wherever our clients are open for business. Our consumer and retail practice is organised into two main segments: Retail, Restaurants and Consumer Goods. We help companies define current business strategies, formulate business plans and provide implementation support to achieve steady growth in the current market environment filled with uncertainty.

How can we help?

• Omnichannel strategy: Classify business and product lines based on consumer journeys and key channel and “Go-To-Market” characteristics; conduct “Where-to-Play” business model analysis for each product type; establish a comprehensive and scientific regional/provincial market potential assessment model to identify high, medium, and low-potential market clusters; design "How-to-Win" strategies and plans to help solve the problem of multi-channel to omni-channel operations during the multi-directional management of the business.
• Corporate growth strategy: Through strategic positioning, we help enterprise grasp future growth opportunities and support the development of various business lines. Simultaneously, we address existing business barriers, comprehensively enhance the competitiveness and revenue of the company, establish an effective management system, and build a sustainable and thriving enterprise.
• Product strategy: Evaluate the product demand of target markets, considering the optimal structure in terms of breadth, depth, and interrelatedness of the product portfolio; help break down the growth target and enhance the competitiveness and efficiency of the enterprise.
• Market strategy: In the face of diversified and individualised consumer demand, we help define brand positioning, provide consumer insight research, customer marketing plans, channel strategies and resource planning services, and develop long-term and actionable market strategy plans.
• Customer experience optimisation: Provide all-round insights into consumer needs from four aspects: experience economics, theory of planned behaviour, data analytics, and iterative updates to improve consumer satisfaction, reduce consumer churn, increase consumer repurchase rate, and optimise corporate profits.
• Stakeholder insights: Provide consumer insights, consumer journey analysis, market competition landscape and competitor capability analysis.
• Hainan strategy: Help organisations understand the regulatory and administrative environment for the planning of the Hainan FTZ, providing guidance for selecting the appropriate business models based on policies. Assess the competitive landscape, bring key stakeholders on board, and develop implementation plan. Design the suitable and robust business and operating models, support in the implementation process to ensure timely completion, compliance with regulations, and supporting in change management. 
• Environmental, Social and Governance (ESG) Strategy: Define areas of relative importance and focus areas of "Environment", "Society", "Governance" based on stakeholder perspectives including customers, employees, regulatory and capital markets, while staying true to the core DNA of the brand. Prioritise programs to address specific objectives around ESG achievement, and identify potential impacts on upstream, internal, and downstream customers. Quantify the potential investments required to support the initiatives and outcomes that drive the ESG agenda. Determine strategies to overcome increased costs by leveraging the capital markets and ultimately reflecting in the brand, products, channels and pricing to drive growth.

Industrial

The Chinese industrial manufacturing sector is currently facing significant challenges, including rising costs and supply chain instability on a global scale. These challenges are putting immense pressure on the profitability of manufacturing companies. However, amidst these difficulties, there are still abundant opportunities for growth and advancement in the sector. Companies are actively leveraging technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and big data to enhance production efficiency and quality control. Moreover, the comprehensive industrial support and cost advantages provide Chinese enterprises with ample opportunities to expand into international markets, participate in global value chain restructuring, and increase their market share.

To maintain a competitive edge in the increasingly intense global market competition, management teams of manufacturing companies must consistently focus on business innovation, production and sales models, supply chain efficiency, and cost dynamics. Additionally, they need to establish agile organisational responsiveness and continuously recalibrate their development strategies to adapt to changing market conditions.

KPMG Transformation Industrial team adheres to the strategic view of "From Innovation to Results", not only provides in-depth industry insights and advanced methodologies but also offers long-term support to companies, enabling them to adapt flexibly at different stages, foster continuous innovation, and sustain their development and international competitiveness.

How can we help?

• Business portfolio strategy: We assist companies in assessing and adjusting various business units and product lines to ensure their mutual complementarity and effective support for the overall corporate strategy. Through investment, divestment, and restructuring, we help maximise the utilisation efficiency of internal resources, enabling companies to seize timely opportunities for growth and enhance overall profitability.
• Corporate growth strategy: We provide comprehensive support to companies by deeply understanding industry trends and competitive landscapes. By leveraging both organic and inorganic growth, we help identify the optimal expansion paths in terms of regions, product categories, and customer segments. Furthermore, we assist in developing key capabilities and organisational plans to ensure effective implementation, resulting in business scalability and increased market share.
• Business model transformation: We assist companies in evaluating and reconstructing the operating models of their core businesses to align with significant changes in the global economy, industry, and technology landscape. This includes enhancing competitiveness in areas such as innovation and R&D management, market and channel management, and supply chain optimisation.
• Operational performance improvement: By closely collaborating with frontline management, we conduct in-depth business diagnostics and leverage industry best practices to identify and address root causes of operational challenges. Our tailored performance optimisation plans break down critical tasks and indicators, while our monitoring and support ensure a successful improvement process.

Life Sciences

In the realm of life sciences, the capital market is currently experiencing a downturn, prompting regulatory bodies to prioritise market stabilisation and decelerate the pace of IPOs. MNCs prioritise cost control and expenditure reduction. Meanwhile, our industry confronts notable challenges, such as intensified price competition and internal capability gaps. ​On the other hand, market recovery is a certain trend, companies should prepare for long-term strategy for the normalised environment while keep monitoring the recovery progress to make prompt decisions. Notably, medical device companies are becoming more MedTech-focused, while pharmaceutical companies are embracing more innovative medicines, such as precision medicine (e.g., including gene and cell therapies). The life sciences sector is rapidly adopting digitally enabled operating models and harnessing data and platform-enabled approaches to improve efficiency.  

KPMG Transformation Life Sciences team bring integrated solutions that go beyond traditional market research to effectively address client’s challenges and deliver value in a more comprehensive way. Our deep cross-sector insights and experiences, combined with our diverse team, enable us to generate innovative idea and adopt a unique research approach in the life sciences sector. In addition, our platform-driven offerings objectively integrate leading industry service providers and resources to maximise value for our clients.

How can we help?

• Corporate growth strategy: Market trends and dynamics analysis; Customer and market segmentation strategies; Internal resource and capability diagnoses; Sustainable business growth strategies; Operational optimisation and critical capability enhancements​
• Portfolio strategy: Comprehensive disease and therapy database construction; Principal guidelines for therapy selection processes; Identification of compelling therapies through portfolio strategies; Target companies’ assessment; End-to-end support throughout the deal process​
• Marketing strategy: Healthcare professional (HCP) and patient insight studies; Brand positioning strategies; HCP placement and segmentation; Core message element; Customer engagement plan formulation; Channel mix optimisation and resource planning​
• Pricing & reimbursement strategy: Regulations and policies research; Pricing strategies formulation; Market access and reimbursement pathway navigation; Innovative access and payment model exploration; National Reimbursement Drug List (NRDL) listing and negotiation planning support; Value proposition and value dossier development​.
• Medical strategy: Registration pathway identification; Indication prioritisation; R&D landscape comprehension; Site prioritisation; Patient recruitment, enrolment, and retention strategy​
• Channel & operation strategy: Channel structure optimisation; Distributor roles and responsibilities refinement; Commercial policies optimisation; Operational management approaches improvement; Commercial team size and capabilities benchmarking​
• Market assessment & NPP: Market dynamics analysis; Competitive landscape evaluation; Opportunity and challenge identification; High-level sales forecasts and investment estimations; Recommendations for market preparation initiatives​
• Stakeholder insight: In-depth physician insights; Pricing and market access policy interpretation; Patient diagnostics and emotional journey analysis

Banking

At a time of rapid changes in the macroeconomic and regulatory environment, commercial banks are facing increasing challenges in terms of how to cope with fierce market competition, maintain revenue and profit growth, enhance operational efficiency and effective cost control, and strengthen risk management and compliance. At the same time, the upgrading of customer demand, economic development, opening of the financial market and technological advancement will bring more opportunities for the transformation and development of banks.

KPMG Transformation Banking team is a trusted advisor to banks, dedicated to delivering comprehensive and integrated solutions from strategy planning to implementation. With years of in-depth experience in the banking industry, as well as a team of experienced experts across the country, we provide support in different areas such as strategic planning, digital transformation, omni-channel transformation, and organisational change.

How can we help?

• Growth strategy and transformation. We help Chairmen and CEOs conduct bank-wide growth strategy, business, and digital transformation integrated design, and planning on specific business units including but not limit to retail finance, consumer finance, wealth management and private banking, corporate banking, transaction banking, financial markets, omni-channel management, and market entry strategy.
• Strategy implementation support and change management. Leveraging our unique proprietary MAPE (Measures-Activation-Performance-Enablement) toolkit, we help banking clients set up the necessary strategic management systems, organisation, policies and procedures, management, and incentive mechanisms, to effectively implement the strategy.
• Business driven indicators design. Based on KPMG's mature BDID (Business Driven Indicators Design) methodology and strategic indicator library, we assist banks in designing a business-driven indicator system, including the Polaris indicator, supporting business model design, and bank-wide business indicators that can ensure the implementation of strategies.

Asset Management

The wealth and income of Chinese residents, along with the size of the middle-income group, are experiencing continuous growth. This trend presents the asset management sector with unprecedented development opportunities. However, it also poses significant challenges in reshaping business models. On one hand, the younger, more affluent, and increasingly sophisticated customers are expecting comprehensive, smart, and personalised services and products. On the other hand, the top-tier global players are also actively entering the market, bringing new mindsets, advanced capabilities, and fierce competition, sometimes even game changers. 

KPMG Transformation WAM team has established strong partnerships and developed thought leadership across various verticals within the WAM sector. This includes securities & investment banking firms, fund management companies, trust companies, bank wealth management subsidiaries, and insurance asset management companies, and more. We assist worldwide WAM clients in diverse topics, providing a variety of services from strategic planning and digital transformation to risk consulting and organisational change.

How can we help?

• Growth strategy and transformation. We help Chairmen and CEOs conduct corporate strategy, digital transformation design, and planning on specific areas including but not limit to business unit planning customer experience and customer journey, omni-channel management, and overseas expansion.
• Market entry and regulated entities set-up. We help global WAM players apply for licenses and set up joint-venture / WOFE in China. We offer turn-key solutions ranging from business strategy planning, target operating model design, project management, regulatory advisory, and on-site inspection support.
• Whole life cycle deal advisory. We assist WAM clients on the entire lifecycle of the deal process, starting from investment thesis development, target screening and short-listing, to due diligence from perspectives of commercial, financial, operations, risk and tax, and to post-deal integration and value creation. 
• Strategy implementation support and change management. Leveraging our unique proprietary MAPE toolkit, we help WAM clients set up the necessary strategic management systems, organisation, policies and procedures, management and incentive mechanisms, to effectively implement the strategy.

Insurance

The insurance sector is in uncharted territory. It’s addressing new industry challenges. With advancing technologies and regulation changes, trust and data are becoming the new currencies. Interconnected operating models and new ways of working are becoming the standard. Evidently, shaping cost reduction areas is essential. And navigating the ongoing regulatory scrutiny has been a concern across the board.

We bring together experienced individuals who offer insightful and practical business advice based on their international and local experience of serving leading insurers both in China, the region and globally. Our practical experience combined with knowledge of industry trends means we are well placed to add value to our client’s business.

How can we help?

• Optimize distribution channels. Ensure the right strategy, infrastructure, tools, trainings and incentives are in place to drive maximum value and improve top- line growth and profitability
• Rebuild customer journey and improve customer experiences. Use digital options to qualify customers, set policies, and manage claims faster.
• Drive value through target operating model. Identify critical gaps that will enable you to adapt more quickly to market changes, increase efficiency through process optimisation and automation, reduce operational costs, risks and complexity through standardisation, identify areas that could become shared services or can be outsourced, improve business decision making with a strategic alignment of reporting and use of analytics;

Infrastructure

The state has issued a series of policy documents that provide increasing policy and financial support for the construction of new infrastructure, creating favourable conditions for such projects. Meanwhile, with ongoing urbanisation, advancements in digitalisation, and the growing emphasis on low-carbon environmental protection, the demand for new infrastructure construction continues to rise, making it a new investment hotspot. However, as the state transitions from large-scale construction to high-quality development, with a decrease in total investment of infrastructure, leading to a slowdown in the traditional infrastructure development. Given that infrastructure projects require significant investment and long construction periods, it is necessary to be vigilant about the debt risks caused by large-scale borrowing from local city investment companies.

KPMG Transformation Infrastructure team has extensive experience serving well-known infrastructure enterprises, including infrastructure companies, city infrastructure & operator SOEs, industrial park operators and real estate operators, etc, providing insightful industry trend analysis, regional development strategies, and enterprise development strategies. We employ a mature strategic planning methodology and can provide customised project team tailored to meet client needs.

How can we help?

• Provide industry latest trends and insights. Provide policy analysis, market trends, and competitive analysis of sub sectors in the infrastructure industry. Conduct benchmark case studies for leading companies in the field.
• Formulate business development strategies. Identify priority areas for business development, establish brand benchmarks, and actively cultivate emerging areas to enhance future business growth and profitability.
• Optimise organisational governance models. Clearly define the roles and responsibilities of the group headquarters and subsidiaries in various areas of governance. Streamline and improve control regulations and systems to ensure the implementation of rights and responsibilities.
• Provide regional plot planning. Based on internal and external analysis and in-depth industry research, clarify the specific core development strategy and industrial development system for specific land plots. Emphasise value enhancement of land, industrial projects positioning, and provide recommendations for the spatial functional layout.

Government

Facing global economic slowdown and a new stage of China's economic development, the Chinese government not only faces challenges such as advancing reforms, establishing new development paradigms, and promoting high-quality growth amid rising uncertainties, but also embraces historic opportunities to seize the new round of technological and industrial revolutions. In this complex environment, government service faces greater uncertainties and needs to further enhance governance capabilities to address more intricate challenges.  

KPMG Transformation Government team possesses extensive experience in policy research and implementing reform and opening-up measures, as well as in executing major strategic initiatives. We deeply understand government policies and market dynamics and offer valuable strategies and suggestions. Our expert team collaborates closely with government departments, combining a deep understanding of reform, opening up, and technological innovation, supported by KPMG's global network with cutting-edge ideas and successful cases, to provide consulting services and recommendations for central, local governments, and even local platform companies.

How can we help?

We offer comprehensive consulting services covering government governance, regional development, industrial policy, and state-owned enterprise reform, aimed at enhancing the decision-making efficiency, service quality, operational effectiveness, and governance capabilities of government agencies. Our recommendations are problem-oriented, highly actionable, and accompanied by follow-up support services to ensure practical implementation.

• Government services and governance: We provide strategic advice and implementation plans to improve government decision-making efficiency, enhance service quality and transparency, and optimise governance structures and processes.
• Regional and industrial development services: We develop customised development strategies for different regions and industries, including industry upgrading, regional economic development planning, and comprehensive plans to promote local economic and social development.
• Local platform company services: We offer strategic planning, operational optimisation, and management efficiency improvement consulting services for local government platform companies, enhancing their support for local economic and social development.

Healthcare

In the context of aging population, rising health awareness, and continuous advancements in medical technology, China’s healthcare system is undergoing a deep reform. From policy perspective, "Healthy China 2030" explicitly aims to improve the health of the population by implementing systemic and innovative reforms to safeguard people’s health comprehensively and continuously. From payment perspective, while establishing a multi-tiered healthcare security system, National Healthcare Security Administration will continue to play a pivotal role in driving nationwide centralised procurement of medicines, medical devices, and consumables, as well as reforming the hospital-side payment model such as DRG and DIP, driving the transformation of enterprises across the healthcare industry value chain. From healthcare services perspective, efforts will be made to build a high-quality and efficient integrated healthcare system by promoting the development of public hospitals and advancing the establishment of medical consortia, city medical groups, and regional medical centres. From healthcare industry perspective, a comprehensive and optimised health industry system will be established, creating new opportunities for innovative and internationally competitive healthcare enterprises.  

KPMG Transformation Healthcare team possesses extensive expertise in the healthcare industry. Our track record includes the publication of numerous industry reports and the provision of comprehensive support to a diverse range of clients including health commissions, healthcare security administrations, public hospitals, state-owned healthcare platforms and private healthcare groups. With a rich portfolio of service cases, we offer integrated healthcare industry solutions that span from strategy to execution.

How can we help?

• For state-owned healthcare platforms and private healthcare groups:
  • Strategy planning​
  • Optimisation of organisational governance and control​
  • Integration of business and finance​
  • Performance system optimisation​
  • Process optimisation​
  • Risk management and internal control​
  • Information technology planning
• For public hospitals:
  • Strategy planning ​
  • Establishment of operational systems​
  • Comprehensive budget management​
  • Cost optimisation ​
  • Specialty planning
  • Improvement of national performance ranking​
  • Performance optimisation​
  • Process optimisation​
  • Risk management and internal control
• For Health Commissions:
  • Development planning for the "155" initiative​
  • Regional healthcare system redesign​
  • Benchmarking of domestic and international healthcare systems​
  • Assessment of healthcare reform models
• For Healthcare Security Administrations:
  • Optimisation of healthcare funding and treatment policies​
  • Financial planning and risk management of healthcare fund​
  • Design of healthcare payment method​
  • Price management of medical service items​
  • Improvement of healthcare fund supervision and credit system