Revised Final-Research Paper PDF
Revised Final-Research Paper PDF
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ABSTRACT
Introduction: With the increasing internet penetration and proliferation of smartphones, more and more
consumers are choosing to purchase products online year-on-year. Today online shopping continues to
grow with growing behaviour of “Showrooming” wherein a shopper browses through a physical store but
ends up with buying online for various reasons. The increasing customer behaviour of “Showrooming” is
attributed to innovative and engaging shopping experience provided by the mainstream and niche online
fashion retailers. The increasing tendency shoppers of “browsing offline but buying online” naturally leads
to the loss of brick-and-mortar players because of which many times a question is put on the future of brick-
and-mortar retail.
Purpose: The study seeks to establish that brick-and-mortar retail specifically the fashion category remains
not only relevant, but indispensable by virtue of its touch-feel-try experience. The origin of this conjecture is
the idea of integrating the various channels and synergizing its overall impact across the touch-points. This
integrative approach between various channels is based on the notion that online and brick-and-mortar
operations are not competing forces but complementary components of contemporary fashion retailing.
Methodology: The study is based on the secondary research wherein various latest corporate and academic
research works is reviewed to obtain the insights.
Results: In this study it is observed that brick-and-mortar fashion retailing has started to transform with the
emergence of the Omnichannel retail, which is essentially characterized by the integration of the various
channels to support cross-channel consumer interaction. This eventually leads to enhanced shopping
experience across the touch-points like in-store, online, mobile app, loyalty programme and social media
etc.
Originality: This study categorically focuses on understanding the need for brick-and-mortar fashion
retailers to embrace Omnichannel way of business in the context of growing competition from mainstream
and niche online fashion players.
Keywords- augmented reality, E-retailing, Omnichannel retail, showrooming, and Social media, Mobile,
Analytics, and Cloud computing (SMAC)
fashion retailers to adopt the emerging and expect the brands market to double in
“Omnichannel” philosophy of retailing, size by 2021 to US$30 billion from the
which enables the customers to interact current $15 billion. The branded apparel
and transact with a store via all possible segment is gaining considerable traction
channels like – in-store, through mobile in an otherwise fragmented market. This
applications, social media networking is reflected in the top 15 brands
sites or online - and experience the same registering a 24 per cent CAGR over
message and level of service across the all 2011-15 versus 6.5% CAGR for the
the touch-points. industry; and the organised value-retail
segment as opposed to unorganised retail
According to a study conducted by or independent stores is gaining
Nasdaq-listed CA Technologies, India is considerable traction.
one of the best performers when it comes
to the digital transformation business CLSA further states that, the growth rate
impact scorecard (BIS). India is standing of branded apparel sector is likely to
high with a score of 79, which is mainly outpace (overtake) the growth rate of
driven by Social, Mobile, Analytics and entire industry (apparel sector) by 1.5
Cloud (SMAC). The impact brought by times by 2020-21. CLSA attributes this
digital programmes, policies and attractive growth rate of branded apparel
initiatives in India is higher than the Asia sector to the factors like, entry of foreign
Pacific and Japan (APJ) score of 56 and players and the implementation of GST
global BIS average score of 53 (CA regime, which is expected to further shift
Technologies, 2016). the tide in favour of branded apparel
market.
When discussed in the context of fashion
retailing, it is very much evident from the Here E-commerce is essentially playing
growth projections given by Google-AT the role of a growth catalyst for fashion
Kearney report. According to the Google- brands (by improving distribution) and
AT Kearney report India's online fashion also as a challenge for offline department
retail market is on its way to emerge as stores dealing in fashion category. The
one of the most-shopped digital category entry of foreign brands like GAP, Zara
by 2020. This is expected to be and H&M is accelerating footfalls in
accounting for about $21 billion (Rs 1.4 shopping malls and also providing
lakh crore) of the country's total E- lucrative strategic partnership
commerce spending by then. (Google- opportunities for Indian entities. The
A.T.Kearney, 2016). presence of a sizeable local textile
industry is also providing a
Now, researcher would like to attract the accommodating ecosystem for branded
attention towards the growth estimates of apparel.(Shah, 2016)
branded apparel market. According to a
report by CLSA (2016), with a shift in It is observed that, as the online shopper
consumer tastes towards branded apparel in India is evolving swiftly and has
providing strong investment opportunities emerged as an astute buyer. This customer
ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT
evolution has provided opportunity for the TopShop has adopted the Omnichannel
niche players such as Koovs, Voonik, strategy for its international expansion by
Limeroad and Yepme Etc. to contain the seamlessly integrating its brick-and-
challenge and hegemony of leading mortar stores, online store and mobile. For
marketplace players like Flipkart and instance, in United States the company
Amazon. For instance, Voonik makes uses its flagship store in the major cities
recommendations based on user profiles like Los Angeles and New York to
that take into account skin tone and other showcase its latest collection and designs.
preferences. This enables the users to buy TopShop brings majority of its revenues
what suited their lifestyle and budget. through online portal or through smaller
boutiques within department stores.
Sujayath Ali (2016) in an interview stated TopShop has leveraged the technologies
that, Voonik aspires to be the "personal like integrated apps for mobile devices
stylist of every woman". With the help of and the virtual fitting rooms to ensure a
sophisticated technical platform, Voonik comprehensive shopping experience for
allows users to choose clothes that would its customers. Yepme uses Omni Catalyst
best suit them. It takes into account to ensure seamless customer experience
various factors, such as their body type, by providing same prices, offers and
lifestyle and budget. The interviewee return policies across channels. The
further added that, Voonik has created a software provides integrated front-end and
visually rich fashion app that is aimed at back-end solutions through a single
providing compelling shopping database for Omnichannel models.
experience to the mass buyer. According
to Sujayal Ali, Voonik specifically aims at According to the Google-AT Kearney
striking a balance between customer’s report, the main differentiators in terms of
budget and priorities. The app takes into design, pricing, target customers,
account the recommendation of a stylist personalised recommendations and
and the preference of the customer. The services have given the niche players an
interviewee also states that, Voonik has opportunity to fill the “gap” left by
massive following in Tier-II and Tire-III mainstream online players and offline
cities, as almost 65 % of their users are fashion retailers. This approach ensures a
reportedly from small towns. small but committed and growing set of
customers for them. (Google-
Western wear brand Koovs targets young A.T.Kearney, 2016)
urban fashion connoisseurs in India by
bringing the selection designed by a team However, in the context of fashion
from Miss Selfridge, a high-street British retailing it was not easy to translate the in-
women's wear label, and TopShop, to store experience (touch-feel-try
name a few. TopShop is a British brand experience) to the online environment.
that mainly targets women in the age This challenge was one of the major
group of 15 to 30 years and those seek for reasons why the fashion industry has been
“Catwalk Inspired Designs” at high-street slower than other sectors to adopt digital
prices. technologies or online retailing.
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Recently, however, new digital and how the brick-and-mortar stores are
technologies like 3D virtual models, evolving to adapt to new circumstances?
augmented reality, and artificial
Intelligence etc. have enabled the online Need for study
retailers to display the fashion products in In order to attain the problem statement,
a better way, creating an interactive and the undertaken research study adopts a
exciting shopping experience. As a result, managerial perspective in order to get
fashion and clothing has become the insights on current scenario in fashion
fastest-growing online category of retailing. It essentially delves into the
products bought in the India. This coupled major challenges that the brick-and-
with other benefits of online shopping like mortar retailers are facing in the context
convenience of shopping with last mile of growing online and niche fashion
delivery, COD (cash on delivery) and easy retailers. The need of the study here is to
return policies have significant find the ways by which a brick-and-
consequences on brick-and-mortar mortar fashion retailer can “fill” the
retailing. Here, what really matters is “Expectation gap regarding shopping
reaching the customer wherever they may experience” that has been created after the
be. Hence, the Omnichannel strategies growth of online fashion retailers and
revolve around the “connected shopper”, arrival of niche fashion players in the
which is referred as the Omnichannel terrain of fashion retailing. This research
shopper. Meanwhile, the physical channel is aimed at obtaining insights pertaining to
does not entirely set aside the adoption of Omnichannel retailing. It also helps to
the cutting-age-technologies for attracting understand how the Omnichannel fashion-
and retaining customers, enhancing shopping experience is bringing paradigm
customer loyalty and providing improved transformation in the business of vogue.
shopping experience.
Research Methodology-
Statement of problems-
In this research that is based on secondary
The literature review shows that there data, the Researchers take into account the
exists a “research gap” in understanding insights derived from relevant studies
the degree to which integrated offline- undertaken and survey conducted by
online-social experiences fulfil various researchers and institutions in the
consumers’ expectations towards fashion subject area. This research is essentially
shopping experiences. In light of this, two aimed at studying various factors that are
basic research questions are proposed. playing crucial role for creating
First, the “Strategic assets – the touch, feel Omnichannel shopping experience, with
and try set up” of the brick-and-mortar special reference to fashion retailers.
fashion retailers can be leveraged?
Second, why are the brick-and-mortar Researchers have also considered the
fashion retailers need to implement an views/ opinions expressed and
Omnichannel strategy? And third, why experiences shared by the leaders and
experts in the retail industry, pertaining
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fashion retailing and Omnichannel retailing. In this thesis, the researcher has
strategy. suggested the fashion brands to
reconfigure their existing business and
Literature Review- information technology (IT) resources.
Wojciech Piotrowicz and Richard The researcher recommends aligning
Cuthbertson (2014) have defined the these resources with a new digital strategy
concept of Omnichannel retailing as an in order to deliver an integrated and
emerging concept where all sales and coherent shopping experience across
interaction channels are merged and it is channels and markets. The researcher
designed to deliver a seamless customer refers this approach as the Omnichannel
experience regardless of the channel. Here way of retailing. Here the researcher has
the researchers opined that, the growing summarised that, with the advancement of
use of mobile devices and social media digital channels, the consumer
networks has made the traditional online- expectations has also increased to a new
offline channel dichotomy obsolete, as the level. In this kind of scenario, businesses
lines between channels have blurred. need to engage with the customers
From these transformations a new whenever, wherever and however. So the
business model has emerged which is motivation for strategically executed
referred as the Omnichannel. Omnichannel strategy will be become
ever more compelling.
Rina Hansen (2015) in the research thesis
titled- Towards a digital strategy for However this study is limited by featuring
Omnichannel retailing- has argued that, a single case that is pertaining to fashion
the emergence of web technologies, retailer Hummel’s. Hence it can be argued
mobile devices and social media that, one cannot generalise from a single
networking channels has revolutionized case. The second major limitation of this
the retail customer experience. The study is its focus on e-commerce only and
researchers found that customers are inclination towards the technicalities of
increasingly using multiple channels to the Omnichannel transformation process.
maximise their shopping experience. The However, it is observed that, digital
researcher here illustrates the Hummel’s marketing and social media marketing are
case study and examined the transition of the inevitable components of
a B2B company to becoming a multi- Omnichannel retailing at Hummel and in
channel retailer (B2C E-commerce) by re- general as well.
aligning its inherent digital technologies A study undertaken by Deloitte delves
for developing the Omnichannel retailing into the new system of retailing
model. connecting the various channels like
This study concluded that, after the offline stores, Web based stores, mobile
proliferation of these technologies apps and social media networks is referred
consumer expectation has increased, to as the Omnichannel retailing. By virtue
categorically in the category of fashion of integration all these channels,
Omnichannel retailing offers a flexible
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business model, value is derived mutually feedback. However, being only online can
between the users who benefit from have certain limitations, as customers
socially interacting with other users and can’t touch and feel of products which
organizations that maintain a captive increase the chances of returns, while
audience for advertising and business logistical issues persist at a customer
intelligence. The researchers concluded level.
that this competitive advantage is
maintained for an organization as long as Vivek Prabhakar further added that,
users continue to co-create with the selling through these two channels
organization and at a higher level than its (Facebook and company website) was
competitors. cost-friendly and helped us garner mass
appeal. Based out of Bengaluru and with
Virginia Sharma (2016), director, limited resources, going online was the
marketing solutions at LinkedIn India says best way for us to reach people across the
that, today the customer is actively country by using AdWords and other
seeking information and is finding it in digital marketing methods. They also kept
assorted ways. As multiple touch-point their Facebook page fun and shared
opportunities become available to content that would interest a young
customers, new media communication audience, getting them to interact with us
tools are becoming an integral part of the and giving product information.
customer’s buying-journey. This makes
the brands essential to track and analyse According to DigitasLBi's Connected
customer behaviour to deliver content that Commerce study of the latest retail trends,
customers really want to read. The author shoppers around the world now expect
further added that when it comes to Omnichannel, multi-screen experiences
content marketing, there is no one-size- from brands and retailers, with the
fits-all formula. A potent mix of both average consumer using a total of five
science (insights and analytics) and art devices when making a purchase. This
(messaging, tone and architecture) is study—which was done across 17
necessary to enable brands with all the countries including India, Australia,
elements needed to create an interesting Japan, China, the UK and the USA—also
narrative. suggests that consumers found that
shoppers are increasingly using the
Vivek Prabhakar (2016), chief Executive devices like, desktop, laptop,
at Lifestyle brand Chumbak which have smartphones, tablets and connected TV
started following the cross-channel format for shopping. They are rapidly embracing
(retailing through offline-online-social wearable technologies as well. The report
media) opines that, being online has many further reveals that, social shopping is also
advantages for a start-up, such as the a rapidly growing phenomenon, with 28%
ability to target an exact audience, of social network users around the world
measure return on investment, display and claiming to have purchased an item
share content to engage current and directly via a social media platform. India
potential customers and get instant ranks second in terms of social shopping
ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT
with 55% of respondents now buying mobile phones and mobile Apps. They are
through social sites. Other social elements increasingly using social media for
such as online reviews are also gaining sharing the looks and soliciting peer
importance in the purchasing process: feedback. They are also expecting the
74% of shoppers read them when buying store sales representatives capable of
online and 35% when shopping in-store. providing personalised product
(DigitasLBi, 2015) recommendations.
Commenting on the findings of annual which eventually led the brand to a CAGR
report jointly published by RAI (Retailer’s of 20-25 % for the last five years, for its
Association of India) & Octane Marketing apparel portfolio.
which is titled as-2016 India Retail e-
Marketing Study: A Path to Revolution, Alec J. Dorman (2013) has research found
Kumar Rajagopalan (Retailers that brick-and-mortar retail is highly
Association of India (RAI) and Octane relevant in the Omnichannel retail
Marketing, 2016) , CEO of RAI, said that, revolution. The positive relationship
retail is one of the few sectors in India between brick-and-mortar investment and
which has been showing promising signs web traffic indicates that physical stores
of digital innovation. Here one of the key play crucial role in attracting consumers.
driving factors is the new & evolving The researcher argued that the retailers
digitally savvy consumers. While Punit which actively invest in their physical
Modhgil (Retailers Association of India locations are rewarded with greater web
(RAI) and Octane Marketing, 2016), traffic, which this study establishes as a
Director & Co-Founder-Octane Marketing prerequisite for generating internet
opined that, retailers will have rethink revenues. A larger amount of purchases
shopper loyalty to create reasons for online is also shown to correlate
shoppers to come to their stores. And this positively with gross profit margins,
is where digital marketing is helping to which shows that a strong online and
create sustained engagement with like- physical presence strengthens the retail
minded consumers who either buy online brand.
or find a reason to visit a retail store. In Qi Yong-zhi (2014) argues that,
addition, it helps generate qualified leads traditional retailers should consider
and is equipped with smart analytics that breadth of channel choice, content
helps retailers track the ROI of their consistency and process consistency. For
digital investments. breadth of channel choice, customers are
According to Gaurav Mahajan (2016), increasingly switching to other channels at
President (apparel business) at Raymond, any stage of the buying and enjoy the
the consumer today moves seamlessly expected shopping experience. For
between the digital and physical world instance, customers can put the order
and technology will further intensify this online and receive the deliver offline. The
trend in a disruptive manner. All brands purchase can be made online and
and retailers have realised that they need merchandise can be returned or exchanged
to find a way not only to respond to this offline. Or customers may touch-feel-try
but also to treat this is an opportunity for the merchandise in the offline store but
positive disruptive progress. Gaurav buy online. For content consistency,
Mahajan further added that, digital and retailers should maintain consistency of
Omnichannel coupled with exclusive merchandise information, price,
business outlets (EBOs) have been at the promotion and stock across the various
forefront of Raymond’s strategic agenda, channels. For process consistency,
different channels should provide the
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same service quality and quick service to like Lifestyle and Max) launched its
customers. flagship E-Commerce initiative,
LandmarkShops.in, in India, aimed at
Prashant Chaudhary (2016) in his book making shopping household Landmark
titled-Retail Marketing in the Modern Age Group brands simpler, easier and more
has opined that, smart Omnichannel convenient. Commenting on this
marketing is about understanding your initiative, Kabir Lumba (2016), Managing
consumers’ tastes-preferences and Director, Lifestyle International Private
matching the products and overall Limited said that, the department based
shopping experience to their expectations retailer are extremely delighted to launch
and convenience. This enables the LandmarkShops.in. Kabir Lumba stated
consumers to shop seamlessly, online and that, both Max and Lifestyle have a strong
off-line. The author stated that, the stores loyal customer base by the virtues of the
are getting digitized and consumers will customer experience, product offering and
just key-in the size and design that they brand equity the company have
want, and an app will help them to get established over the years. The MD of
exactly what they are looking for. Here Lifestyle International further added that,
the author further argues that, brick-and- with “LandmarkShops.in” the group is
mortar retailers need to invest in looking forward to increase the market
technology for making their physical reach of these brands by making them
outlets more vibrant by providing accessible to customers across the
enhanced shopping experience and brand country, including the cities where these
engagement. Here, they can leverage the brands have not yet established a physical
technology and strategically bridge the presence. It also increases the
gap between the online and offline convenience of shopping, as the
channels. customers can buy the products at the
For instance in January 2016 Dubai based click of a button.
Landmark Group (home to leading brands
Gap Analysis-
Gap analysis
Author/institution
Sr. and title of the
No. study Year Main areas of study Gap
Here the researcher has
Michael Hemsey
focused on one variable that The researcher has not
(Omnichannel
is, optimized loyalty taken other influencing
Loyalty- Designing
1 2012 programs and its impact on factors like social media,
the Ultimate
the engagement at each and mobile app, and Point-of-
Customer
every touch-point that meet sale etc.
Experience)
the expectations of each
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customer.
brand awareness. While on the other side, offer them a relevant proposition.
the online fashion retailers, both Technology enabled infrastructure helps
mainstream and niche players, has also in integration of channels and gives new
raised expectations when it comes to the relevance to brick-and-mortar stores.
shopping experience by exposing However the most important thing is that
customers to the latest technology and technology is not be an end, but a medium
services. So to benefit from the growing to enhance high-quality customer
customer demand for fashion, traditional experience.
brick-and-mortar retailers have therefore
have to change the way they run their The importance of the hedonic elements
business. in the fashion shopping experience has to
be established, in congruence with
Today retailers are serving to the different technologies that lead to creation
“connected customers” whose mobile of an enjoyable fashion shopping
device has become their new personal experience. So the online channel should
shopping assistant, even when they are promote use of interactive and new
inside the store. On the other side, technologies. Mobile connectivity via
researcher observed that a significant smartphones, tablets and wearable devices
number of these customers still prefer to enables consumers to browse and shop
touch, feel and try products before anytime, anywhere, and mobile commerce
buying. This clearly implies that an is expanding rapidly. It is believed that, as
online-only model or offline-only model consumers become more experienced in
is not enough to generate the desired shopping online, specifically from the
customer engagement and shopping portals of niche fashion retailers; they will
experience. expect a similar experience in stores. As a
result, the store experience must be
So, in the age of this digital era “bricks” redefined and its role should evolve, as it
need to get integrated with “clicks”. The is becoming one part of a larger and more
barriers between the online and offline are connected customer experience.
beginning to disappear. The factors that
are catalysing this paradigm shift are As the shoppers are now used to a much
digital technologies like web, mobile, wider range of purchasing options, it is
Analytics, and Cloud computing and more crucial than ever for the fashion
Artificial Intelligence Etc. Hence the retailers to guide purchase decisions by
Omnichannel model of retailing is the virtue of integration of various channels.
future-present of retail. Here they need to offer value beyond the
label price of the merchandise they are
Managerial implications- selling. If a customer perceives an excess
In the burgeoning competitive fashion of value in a transaction, they will be
retailing scenario, the brick-and-mortar more likely to share their shopping
fashion retailers need to find innovative experiences with the fashion brand,
ways to connect with their audience and among other like-minded prospects. This
is very necessary to convert customers
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into brand advocates and thereby insights it brings to the table. These
achieving patronage loyalty. insights are based on pragmatic aspects of
contemporary brick-and-mortar store
Conclusion- based fashion retailing. On accounts of
Hence the study suggests the retailers to findings, the researchers suggest the
review their Omnichannel strategies to brick-and-mortar fashion retailers is
stay relevant. Technological leverage the physical nature of the store in
advancements are becoming key order to provide touch-feel-try experience
components to win new customers so and simultaneously maximise the value by
retailers should review their Omnichannel integrating various touch-points and
strategy to stay ahead. As the communication channels.
Omnichannel shopping becomes By this approach the retailers can enhance
pervasive, embracing these new business the “Overall shopping experience” by
formats and adapting to the technology- providing personalized products and
enabled changes in consumer behaviour services. This approach of marketing will
can enhance the competitive edge of equip them to nullify the challenges posed
brick-and-mortar fashion retailers. These by online fashion retailers and niche
competitive advantages have the right fashion players. Findings of this study
potential to enable them to face the delve into optimal role of brick-and-
competition from mainstream and niche mortar stores on various fronts and
online fashion retailers in a sustainable dimensions of fashion retailing.
way.