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Revised Final-Research Paper PDF

This document discusses how brick-and-mortar fashion retailers are transforming to adopt an omnichannel model in response to growing online competition. It notes that omnichannel retailing integrates both online and physical store operations to provide a seamless customer experience across channels. Top fashion retailers like TopShop are highlighted as examples of companies that have successfully implemented omnichannel strategies through technologies like mobile apps and virtual fitting rooms. The growth of India's online fashion market and branded apparel sector indicates opportunities for both online and physical retailers to adopt new approaches like omnichannel in order to remain relevant in the changing retail environment.

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0% found this document useful (0 votes)
97 views18 pages

Revised Final-Research Paper PDF

This document discusses how brick-and-mortar fashion retailers are transforming to adopt an omnichannel model in response to growing online competition. It notes that omnichannel retailing integrates both online and physical store operations to provide a seamless customer experience across channels. Top fashion retailers like TopShop are highlighted as examples of companies that have successfully implemented omnichannel strategies through technologies like mobile apps and virtual fitting rooms. The growth of India's online fashion market and branded apparel sector indicates opportunities for both online and physical retailers to adopt new approaches like omnichannel in order to remain relevant in the changing retail environment.

Uploaded by

Nishant Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 8 Issue 4 (2017)


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www.elkjournals.com

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TRANSFORMING THE BRICK-AND-MORTAR FASHION RETAILING-

THE OMNI-CHANNEL WAY

Dr. Sarita Karangutkar Prashant Chaudhary


raj7670@rediffmail.com prashant.vchaudhary@gmail.com
Assistant Professor Assistant Professor
VMV Commerce, JMT Arts & JJP Science Sinhgad Institute of Management &
College, Nagpur Computer Application (SIMCA), Pune

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)

Introduction- to social media and mobile applications


Etc. there are now many more variables
The fashion retail environment is going that need to be considered beyond merely
through a multitude of transformations bricks-and-mortar setup. The changed
over the last decade. The transformation business scenario coupled with increased
began with the evolution of E-commerce customer expectation is driving the
ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 8 Issue 4 (2017)


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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
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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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ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 8 Issue 4 (2017)


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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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and seamless shopping experience to channel-optimized loyalty programs “right


consumers, regardless of whether the timed” to deliver engagement at each and
customer walks into a store, browses on a every touch-point that meet the
website or orders via mobile devices. So expectations of each customer.
by being broadly present across channels
and enabling each channel to serve the Mark Glazer (2012) VP of Brand Loyalty
customer at any point through the at Kobie Marketing Inc said that,
purchase journey, retailers can increase successful Omnichannel loyalty is about
the brand awareness, enhance loyalty and delivering loyalty from the very beginning
ultimately drive the value. It is also of the customer lifecycle, across all
observed that, by integrating store and channels in seamless manner. True
non-store presence leading retailers have connection begins even before
been able to lure new customers and also consideration; I'm talking about that
to appeal to distinct markets. In doing so inkling that makes someone engage in the
they not only increase their level of non- first place and say “yes please” or “more
store sales, but they achieve this at very please,” sparking an instant got-to-have-it
low cost of their existing sales. (Deloitte, moment. That inception signifies success.
2014) In a research titled- Social Media
Hence Omnichannel retailing is basically Engagement Theory- the researchers Paul
the model of retailing that offers a M. Di Gangi and Molly Wasko (2016)
seamless shopping experience to have refined the definition of user “social
consumers across all possible media engagement”. They explicitly
mediums/channels. It involves engaging distinguish engagement as a mental state
consumers with the right message at the separate from the user experience and
right time on the right channel. actual behaviour. Fundamentally, user
experience (composed of social
Michael Hemsey (2012) in the whitepaper interactions and the technical features of a
titled- Omnichannel Loyalty- Designing social media platform) is an assessment of
the Ultimate Customer Experience- stated the actual interactions that occur through a
that, the term Omnichannel is an social media platform, which is an
outgrowth of multi-channel and cross- antecedent of user engagement that is the
channel retailing. Omnichannel system resulting psychological state resulting
when implemented with proper from the experience. User engagement
management expertise and technology differentiates the mental state of being
solutions can be upgraded to offer an engaged from the actual act of engaging,
Omnichannel experience. The researcher influencing a user’s behavior.
further argued that, marketers want to sell
products to consumers while loyalty In this study the researchers found that,
experts strive to engage, retain and grow the future of business is increasingly
these new customers and drive them to reliant on User Generated Content (UGC)
advocacy. However, the only way to to create new forms of value and
accomplish both effectively is by offering competitive advantage. In the co-created
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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
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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.

According to PwC’s (PwC, 2016) annual According to the Deloitte Report


retail survey 2016, titled-They say they (Deloitte, 2015) titled-Omni-channel retail
want a revolution-India’s hyper-connected A Deloitte Point of View, modern day
consumers are rapidly entering an era consumers expect to be able to shop
where they expect retailers to provide anywhere, at any time, and from any
consistent and unparalleled service across location. Above all, consumers are
all touch-points. From choosing between thorough in searching for the right price
various channels to being channel and expect multiple, flexible delivery
agnostic, the Indian consumer has come a options. That means they may browse the
long way and is now fast moving towards merchandise in-store in order to touch-
the Omnichannel way of life. In this feel-try the product, buy it online, make
survey which was conducted globally the payment online and ask for the
(across 5 continents and 25 territories), delivery while leaving the store. On top of
found that there is significant rise in the that, savvy consumers are becoming
number of online shoppers purchasing increasingly choosy and expect a tailored,
directly via a social media channel. personal shopping experience. On account
Sixteen percent of our survey sample said of this, retailers are expected to meet these
that they purchase products this way, an demands, regardless of the channel the
increase of 9% since the 2014 survey. As consumer is using. The report further
far as India is concerned, 32% of argues that, this is changing the shopping
respondents said that purchasing directly scene that people are accustomed to.
via a social media channel was part of Consumers, offline retailers and online
their shopping behaviour. In India, 66% retailers are all playing their role in the
said that reading reviews, comments and move towards Omnichannel retail. While
feedback influences their online shopping mobile shoppers are not excluding the in-
behaviour. The report states that, global store experience, the bricks-and-mortar
consumers are pushing the boundaries of customers are also not avoiding using
what a good shopping experience means. their tablet or mobile device to compare
prices, product offerings, and purchasing
The consumers are clearly showcasing terms. Hence if consumers are moving
identifiable desires and increasingly around and across various channels, so
subscribing to specialized retail should retailers. Because of all these
communities. They are openly endorsing developments a single-channel retailing is
the brands they like. Today customers are no more relevant.
browsing and buying more on their
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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.

However the other


variables are not taken
Alec J. Dorman into consideration. This
(Omni-Channel Here the researcher lefts with the opportunity
Retail and the New establishes positive to research on how the
Age Consumer: An relationship between brick- other parameters like
2 Empirical Analysis 2013 and-mortar investment and social media, mobile app
of Direct-to- web traffic indicates that and point-of-sale etc
Consumer Channel physical stores play crucial when integrated with
Interaction in the role in attracting consumers. each other influence the
Retail Industry) consumer engagement
and resultant loyalty
behaviour
This is more of study on
Deloitte (The consumer behaviour and
This study deals with impact
Omni-channel generalised in its
of integration of various a
opportunity- approach. Also there is
channels on the purchase
3 Unlocking the 2014 no specific focus on the
journey, brand awareness,
power of the fashion category and the
loyalty behaviour and the
connected context (that is
overall value.
consumers) burgeoning online and
niche fashion players)
This study is limited by
featuring a single case,
This study examines and
which is of Hummel’s.
illustrates the findings four
Hence it can be argued
scientific papers where each
that, one cannot
paper reports on the outcomes
generalise the finding of
of an action research cycle.
this research. Though the
Here the researcher has
study is related to the
examined the fashion brand
business of fashion
Hummel's journey towards
4 Rina Hansen 2015 retailing, it has not
omni-channel retailing.
considered the other
Hence, primarily it illustrates
crucial components of
the technicalities, structure
digital marketing. Also
and process of transition of a
the researcher has not
traditional B2B company to a
investigated the
multi-channel B2C retailer
importance of these
with omni-channel model of
factors in the context of
retailing
growing online and niche
fashion retailers.
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………………………………………………………………………………………………………………………………

This is more of study on


consumer behaviour and
generalised in its
DigitasLBi's This research studies the
approach. Also there is
(Connected latest retail trends and
5 2015 no specific focus on the
Commerce Survey shopper's expectations around
fashion category and the
2015) the world.
context (that is
burgeoning online and
niche fashion players)
Again, this report lacks
in the explanation of
This survey has taken the
impact of integration of
factors like personalization
Deloitte (Omni- these channels on
and its impact, into
channel retail A customer engagement
6 2015 consideration. It also explains
Deloitte Point of and loyalty. Also, this
how the consumers are using
View) study is generalised and
all the possible channels for
leaves further scope for
shopping
research for the fashion
as a category
Other factors are not
This survey has been focused
covered in this study, that
on the role of social media
influence consumers
portals in the customer’s
PwC (They say buying behaviour in the
journey of shopping and
they want a context of fashion
7 2016 buying. It also discusses
revolution-Total products and the
about how the Omnichannel
Retail 2016) innovative services that
approach of retailing is
are being provided by the
shaping the new consumer
online and niche fashion
behaviour
players
Paul M. Di Gangi
The researchers has not
and Molly Wasko
This study delves into the role incorporated the other
(Social Media
of User Generated Content communication channels
Engagement
(UGC) through social media and impact of the
8 Theory: Exploring 2016
and how it creates the new integration of all these
the Influence of
forms of value and channels on consumer
User Engagement
competitive advantage. engagement and
on Social Media
competitive advantage
Usage)
Though this is
Here the researcher comparatively well
Qi Yong-zhi Omnichannel retailing is comprehensive study and
(Empirical study on affecting the traditional incorporates almost all
multi-channel retailers brick-and-mortar and the variables, but it
9 2016
service quality and why they should consider leaves the scope for
customer loyalty of breadth of channel choice, further investigation
retailers) content consistency and about how these factors
process consistency in an integrative way can
enhance the shopping
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………………………………………………………………………………………………………………………………

experience for the brick-


and-mortar fashion
retailers

Identification and Selection of are chosen. All these variables have a


Variables: positive impact on the customer
engagement when deployed in an
This literature review identifies a major integrated way.
gap in the research regarding the impact
of Omnichannel retailing (integration of Theoretical framework-
various communication channels and
customer touch-points) in the context of There is significant impact of
fashion retailing. Also there exist an “integration of various communication
opportunity (hence a research gap) to channels/ touch-points” [like- In-store
investigate, the importance of this touch points, online channels like
approach for traditional brick-and-mortar Website, shopping portal/ marketplace,
fashion retailers, in the context of Point of Sale (POS), Social Media
increasing online shopping and rising networks, and mobile Apps] on the
expectation of customers after the entry “customer engagement
of niche fashion players. While the
mainstream online fashion players are
offering huge discounts and convenience
of shopping; the niche fashion players are
providing augmented shopping
experience by incorporating various
innovative services in the shopping
journey.

In order to examine the impact of


integration of various customer touch-
points on the customer engagement in the
context of fashion retailing, appropriate
variables like In-store touch-points,
online channels like Website, shopping
portal/ marketplace, Point of Sale (POS),
Social Media networks, and mobile Apps
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Engaging shopping Acquire


the Growing
experience through
Integration of- customers

In-store touch points,


online channels like
company Website, Customer Engagement
shopping portal/
marketplace presence,
Point of Sale (POS) Integrated
experience, Social Loyalty
Media networks, and Programmes
mobile Apps
Retaining

Figure 1- Theoretical framework - The Omni-channel way of marketing in retail


Objective of the study- chosen variables on the customer
engagement and resultant shopping
The literature review and the resultant gap experience. Here the researchers
analysis shows that, though many essentially investigates into the influence
research and survey has happened on how of integration of various touch-points and
the Omnichannel way of retailing is communication channels like- In-store
transforming the retail industry; there touch-points, online channels like
exists an opportunity to re-visit this company Website, shopping portal/
subject matter in the current scenario of marketplace presence, Point of Sale
fashion retailing. Today, it can be experience(POS), Social Media networks,
observed that, the online fashion retailers and mobile Apps- on the customer
and niche fashion players have increased engagement and the resultant customer
the customer expectations towards a loyalty.
fashion retailer. Customers today are
more demanding and in this scenario, the Hypothesis-
loyalty is at stakes. Hence the challenge
in-front of brick-and-mortar fashion This is a secondary research essentially
retailers is not only to meet the increased based on the literature of review, so
customer expectations but also to exceed hypothesis has not been formulated.
this “new normal” by engaging them Findings –
through the channels of their choice.
It is observed that, traditional retail has
So, the objective of this study is to been helped by the growth of digital
understand the impact of integration of marketplaces as they have heightened
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………………………………………………………………………………………………………………………………

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.

It can be concluded that, in order to


achieve this competitive advantage the
brick-and-mortar fashion retailers need to
embrace a two pronged strategy. While on Limitations-
one side they need to leverage their This study is essentially based on the
physical setup to offer an attractive review of existing literature that is
shopping experience; on the other they available on the subject under
need to embrace the Omnichannel model consideration. The literature incorporated
of retailing. This is essentially to offer an research articles/ books chapters/
integrated shopping experience across newspaper articles and interviews with the
various channels, preferred by the industry leaders/ experts. Because of time
customer. The Omnichannel model of and other constraints the primary research
retailing enhances the customer in this area is not done by the researchers.
engagement and eventually leads to There is one more major limitation which
increased customer loyalty. is nothing but the sufficient market
Contribution- evolution and awareness about the
innovative products that are being
This study contributes to the existing provided by niche fashion players.
body of knowledge by virtue of the
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Scope for future research- Retrieved from


https://www2.deloitte.com/content/dam/Deloi
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