Revised Final-research Paper.pdf

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)

………………………………………………………………………………………………………………………………

www.elkjournals.com

……………………………………………………………………………………………………………………………… TRANSFORMING THE BRICK-AND-MORTAR FASHION RETAILINGTHE OMNI-CHANNEL WAY

Dr. Sarita Karangutkar [email protected] Assistant Professor VMV Commerce, JMT Arts & JJP Science College, Nagpur

Prashant Chaudhary [email protected] Assistant Professor Sinhgad Institute of Management & 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 brickand-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)

IntroductionThe fashion retail environment is going through a multitude of transformations over the last decade. The transformation began with the evolution of E-commerce

to social media and mobile applications Etc. there are now many more variables that need to be considered beyond merely bricks-and-mortar setup. The changed business scenario coupled with increased 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)

………………………………………………………………………………………………………………………………

fashion retailers to adopt the emerging “Omnichannel” philosophy of retailing, which enables the customers to interact and transact with a store via all possible channels like – in-store, through mobile applications, social media networking sites or online - and experience the same message and level of service across the all the touch-points. According to a study conducted by Nasdaq-listed CA Technologies, India is one of the best performers when it comes to the digital transformation business impact scorecard (BIS). India is standing high with a score of 79, which is mainly driven by Social, Mobile, Analytics and Cloud (SMAC). The impact brought by digital programmes, policies and initiatives in India is higher than the Asia Pacific and Japan (APJ) score of 56 and global BIS average score of 53 (CA Technologies, 2016). When discussed in the context of fashion retailing, it is very much evident from the growth projections given by Google-AT Kearney report. According to the GoogleAT Kearney report India's online fashion retail market is on its way to emerge as one of the most-shopped digital category by 2020. This is expected to be accounting for about $21 billion (Rs 1.4 lakh crore) of the country's total Ecommerce spending by then. (GoogleA.T.Kearney, 2016). Now, researcher would like to attract the attention towards the growth estimates of branded apparel market. According to a report by CLSA (2016), with a shift in consumer tastes towards branded apparel providing strong investment opportunities

and expect the brands market to double in size by 2021 to US$30 billion from the current $15 billion. The branded apparel segment is gaining considerable traction in an otherwise fragmented market. This is reflected in the top 15 brands registering a 24 per cent CAGR over 2011-15 versus 6.5% CAGR for the industry; and the organised value-retail segment as opposed to unorganised retail or independent stores is gaining considerable traction. CLSA further states that, the growth rate of branded apparel sector is likely to outpace (overtake) the growth rate of entire industry (apparel sector) by 1.5 times by 2020-21. CLSA attributes this attractive growth rate of branded apparel sector to the factors like, entry of foreign players and the implementation of GST regime, which is expected to further shift the tide in favour of branded apparel market. Here E-commerce is essentially playing the role of a growth catalyst for fashion brands (by improving distribution) and also as a challenge for offline department stores dealing in fashion category. The entry of foreign brands like GAP, Zara and H&M is accelerating footfalls in shopping malls and also providing lucrative strategic partnership opportunities for Indian entities. The presence of a sizeable local textile industry is also providing a accommodating ecosystem for branded apparel.(Shah, 2016) It is observed that, as the online shopper in India is evolving swiftly and has emerged as an astute buyer. This customer

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)

………………………………………………………………………………………………………………………………

evolution has provided opportunity for the niche players such as Koovs, Voonik, Limeroad and Yepme Etc. to contain the challenge and hegemony of leading marketplace players like Flipkart and Amazon. For instance, Voonik makes recommendations based on user profiles that take into account skin tone and other preferences. This enables the users to buy what suited their lifestyle and budget. Sujayath Ali (2016) in an interview stated that, Voonik aspires to be the "personal stylist of every woman". With the help of sophisticated technical platform, Voonik allows users to choose clothes that would best suit them. It takes into account various factors, such as their body type, lifestyle and budget. The interviewee further added that, Voonik has created a visually rich fashion app that is aimed at providing compelling shopping experience to the mass buyer. According to Sujayal Ali, Voonik specifically aims at striking a balance between customer’s budget and priorities. The app takes into account the recommendation of a stylist and the preference of the customer. The interviewee also states that, Voonik has massive following in Tier-II and Tire-III cities, as almost 65 % of their users are reportedly from small towns. Western wear brand Koovs targets young urban fashion connoisseurs in India by bringing the selection designed by a team from Miss Selfridge, a high-street British women's wear label, and TopShop, to name a few. TopShop is a British brand that mainly targets women in the age group of 15 to 30 years and those seek for “Catwalk Inspired Designs” at high-street prices.

TopShop has adopted the Omnichannel strategy for its international expansion by seamlessly integrating its brick-andmortar stores, online store and mobile. For instance, in United States the company uses its flagship store in the major cities like Los Angeles and New York to showcase its latest collection and designs. TopShop brings majority of its revenues through online portal or through smaller boutiques within department stores. TopShop has leveraged the technologies like integrated apps for mobile devices and the virtual fitting rooms to ensure a comprehensive shopping experience for its customers. Yepme uses Omni Catalyst to ensure seamless customer experience by providing same prices, offers and return policies across channels. The software provides integrated front-end and back-end solutions through a single database for Omnichannel models. According to the Google-AT Kearney report, the main differentiators in terms of design, pricing, target customers, personalised recommendations and services have given the niche players an opportunity to fill the “gap” left by mainstream online players and offline fashion retailers. This approach ensures a small but committed and growing set of customers for them. (GoogleA.T.Kearney, 2016) However, in the context of fashion retailing it was not easy to translate the instore experience (touch-feel-try experience) to the online environment. This challenge was one of the major reasons why the fashion industry has been slower than other sectors to adopt digital technologies or online retailing.

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)

………………………………………………………………………………………………………………………………

Recently, however, new digital technologies like 3D virtual models, augmented reality, and artificial Intelligence etc. have enabled the online retailers to display the fashion products in a better way, creating an interactive and exciting shopping experience. As a result, fashion and clothing has become the fastest-growing online category of products bought in the India. This coupled with other benefits of online shopping like convenience of shopping with last mile delivery, COD (cash on delivery) and easy return policies have significant consequences on brick-and-mortar retailing. Here, what really matters is reaching the customer wherever they may be. Hence, the Omnichannel strategies revolve around the “connected shopper”, which is referred as the Omnichannel shopper. Meanwhile, the physical channel does not entirely set aside the adoption of the cutting-age-technologies for attracting and retaining customers, enhancing customer loyalty and providing improved shopping experience.

and how the brick-and-mortar stores are evolving to adapt to new circumstances? Need for study In order to attain the problem statement, the undertaken research study adopts a managerial perspective in order to get insights on current scenario in fashion retailing. It essentially delves into the major challenges that the brick-andmortar retailers are facing in the context of growing online and niche fashion retailers. The need of the study here is to find the ways by which a brick-andmortar fashion retailer can “fill” the “Expectation gap regarding shopping experience” that has been created after the growth of online fashion retailers and arrival of niche fashion players in the terrain of fashion retailing. This research is aimed at obtaining insights pertaining to Omnichannel retailing. It also helps to understand how the Omnichannel fashionshopping experience is bringing paradigm transformation in the business of vogue. Research Methodology-

Statement of problemsThe literature review shows that there exists a “research gap” in understanding the degree to which integrated offlineonline-social experiences fulfil consumers’ expectations towards fashion shopping experiences. In light of this, two basic research questions are proposed. First, the “Strategic assets – the touch, feel and try set up” of the brick-and-mortar fashion retailers can be leveraged? Second, why are the brick-and-mortar fashion retailers need to implement an Omnichannel strategy? And third, why

In this research that is based on secondary data, the Researchers take into account the insights derived from relevant studies undertaken and survey conducted by various researchers and institutions in the subject area. This research is essentially aimed at studying various factors that are playing crucial role for creating Omnichannel shopping experience, with special reference to fashion retailers. Researchers have also considered the views/ opinions expressed and experiences shared by the leaders and experts in the retail industry, pertaining

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)

………………………………………………………………………………………………………………………………

fashion retailing strategy.

and

Omnichannel

Literature ReviewWojciech Piotrowicz and Richard Cuthbertson (2014) have defined the concept of Omnichannel retailing as an emerging concept where all sales and interaction channels are merged and it is designed to deliver a seamless customer experience regardless of the channel. Here the researchers opined that, the growing use of mobile devices and social media networks has made the traditional onlineoffline channel dichotomy obsolete, as the lines between channels have blurred. From these transformations a new business model has emerged which is referred as the Omnichannel. Rina Hansen (2015) in the research thesis titled- Towards a digital strategy for Omnichannel retailing- has argued that, the emergence of web technologies, mobile devices and social media networking channels has revolutionized the retail customer experience. The researchers found that customers are increasingly using multiple channels to maximise their shopping experience. The researcher here illustrates the Hummel’s case study and examined the transition of a B2B company to becoming a multichannel retailer (B2C E-commerce) by realigning its inherent digital technologies for developing the Omnichannel retailing model. This study concluded that, after the proliferation of these technologies consumer expectation has increased, categorically in the category of fashion

retailing. In this thesis, the researcher has suggested the fashion brands to reconfigure their existing business and information technology (IT) resources. The researcher recommends aligning these resources with a new digital strategy in order to deliver an integrated and coherent shopping experience across channels and markets. The researcher refers this approach as the Omnichannel way of retailing. Here the researcher has summarised that, with the advancement of digital channels, the consumer expectations has also increased to a new level. In this kind of scenario, businesses need to engage with the customers whenever, wherever and however. So the motivation for strategically executed Omnichannel strategy will be become ever more compelling. However this study is limited by featuring a single case that is pertaining to fashion retailer Hummel’s. Hence it can be argued that, one cannot generalise from a single case. The second major limitation of this study is its focus on e-commerce only and inclination towards the technicalities of the Omnichannel transformation process. However, it is observed that, digital marketing and social media marketing are the inevitable components of Omnichannel retailing at Hummel and in general as well. A study undertaken by Deloitte delves into the new system of retailing connecting the various channels like offline stores, Web based stores, mobile apps and social media networks is referred to as the Omnichannel retailing. By virtue of integration all these channels, Omnichannel retailing offers a flexible

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)

………………………………………………………………………………………………………………………………

and seamless shopping experience to consumers, regardless of whether the customer walks into a store, browses on a website or orders via mobile devices. So by being broadly present across channels and enabling each channel to serve the customer at any point through the purchase journey, retailers can increase the brand awareness, enhance loyalty and ultimately drive the value. It is also observed that, by integrating store and non-store presence leading retailers have been able to lure new customers and also to appeal to distinct markets. In doing so they not only increase their level of nonstore sales, but they achieve this at very low cost of their existing sales. (Deloitte, 2014) Hence Omnichannel retailing is basically the model of retailing that offers a seamless shopping experience to consumers across all possible mediums/channels. It involves engaging consumers with the right message at the right time on the right channel. Michael Hemsey (2012) in the whitepaper titled- Omnichannel Loyalty- Designing the Ultimate Customer Experience- stated that, the term Omnichannel is an outgrowth of multi-channel and crosschannel retailing. Omnichannel system when implemented with proper management expertise and technology solutions can be upgraded to offer an Omnichannel experience. The researcher further argued that, marketers want to sell products to consumers while loyalty experts strive to engage, retain and grow these new customers and drive them to advocacy. However, the only way to accomplish both effectively is by offering

channel-optimized loyalty programs “right timed” to deliver engagement at each and every touch-point that meet the expectations of each customer. Mark Glazer (2012) VP of Brand Loyalty at Kobie Marketing Inc said that, successful Omnichannel loyalty is about delivering loyalty from the very beginning of the customer lifecycle, across all channels in seamless manner. True connection begins even before consideration; I'm talking about that inkling that makes someone engage in the first place and say “yes please” or “more please,” sparking an instant got-to-have-it moment. That inception signifies success. In a research titled- Social Media Engagement Theory- the researchers Paul M. Di Gangi and Molly Wasko (2016) have refined the definition of user “social media engagement”. They explicitly distinguish engagement as a mental state separate from the user experience and actual behaviour. Fundamentally, user experience (composed of social interactions and the technical features of a social media platform) is an assessment of the actual interactions that occur through a social media platform, which is an antecedent of user engagement that is the resulting psychological state resulting from the experience. User engagement differentiates the mental state of being engaged from the actual act of engaging, influencing a user’s behavior. In this study the researchers found that, the future of business is increasingly reliant on User Generated Content (UGC) to create new forms of value and competitive advantage. In the co-created

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)

………………………………………………………………………………………………………………………………

business model, value is derived mutually between the users who benefit from socially interacting with other users and organizations that maintain a captive audience for advertising and business intelligence. The researchers concluded that this competitive advantage is maintained for an organization as long as users continue to co-create with the organization and at a higher level than its competitors. Virginia Sharma (2016), director, marketing solutions at LinkedIn India says that, today the customer is actively seeking information and is finding it in assorted ways. As multiple touch-point opportunities become available to customers, new media communication tools are becoming an integral part of the customer’s buying-journey. This makes the brands essential to track and analyse customer behaviour to deliver content that customers really want to read. The author further added that when it comes to content marketing, there is no one-sizefits-all formula. A potent mix of both science (insights and analytics) and art (messaging, tone and architecture) is necessary to enable brands with all the elements needed to create an interesting narrative. Vivek Prabhakar (2016), chief Executive at Lifestyle brand Chumbak which have started following the cross-channel format (retailing through offline-online-social media) opines that, being online has many advantages for a start-up, such as the ability to target an exact audience, measure return on investment, display and share content to engage current and potential customers and get instant

feedback. However, being only online can have certain limitations, as customers can’t touch and feel of products which increase the chances of returns, while logistical issues persist at a customer level. Vivek Prabhakar further added that, selling through these two channels (Facebook and company website) was cost-friendly and helped us garner mass appeal. Based out of Bengaluru and with limited resources, going online was the best way for us to reach people across the country by using AdWords and other digital marketing methods. They also kept their Facebook page fun and shared content that would interest a young audience, getting them to interact with us and giving product information. According to DigitasLBi's Connected Commerce study of the latest retail trends, shoppers around the world now expect Omnichannel, multi-screen experiences from brands and retailers, with the average consumer using a total of five devices when making a purchase. This study—which was done across 17 countries including India, Australia, Japan, China, the UK and the USA—also suggests that consumers found that shoppers are increasingly using the devices like, desktop, laptop, smartphones, tablets and connected TV for shopping. They are rapidly embracing wearable technologies as well. The report further reveals that, social shopping is also a rapidly growing phenomenon, with 28% of social network users around the world claiming to have purchased an item directly via a social media platform. India ranks second in terms of social shopping

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)

………………………………………………………………………………………………………………………………

with 55% of respondents now buying through social sites. Other social elements such as online reviews are also gaining importance in the purchasing process: 74% of shoppers read them when buying online and 35% when shopping in-store. (DigitasLBi, 2015)

mobile phones and mobile Apps. They are increasingly using social media for sharing the looks and soliciting peer feedback. They are also expecting the store sales representatives capable of providing personalised product recommendations.

According to PwC’s (PwC, 2016) annual retail survey 2016, titled-They say they want a revolution-India’s hyper-connected consumers are rapidly entering an era where they expect retailers to provide consistent and unparalleled service across all touch-points. From choosing between various channels to being channel agnostic, the Indian consumer has come a long way and is now fast moving towards the Omnichannel way of life. In this survey which was conducted globally (across 5 continents and 25 territories), found that there is significant rise in the number of online shoppers purchasing directly via a social media channel. Sixteen percent of our survey sample said that they purchase products this way, an increase of 9% since the 2014 survey. As far as India is concerned, 32% of respondents said that purchasing directly via a social media channel was part of their shopping behaviour. In India, 66% said that reading reviews, comments and feedback influences their online shopping behaviour. The report states that, global consumers are pushing the boundaries of what a good shopping experience means.

According to the Deloitte Report (Deloitte, 2015) titled-Omni-channel retail A Deloitte Point of View, modern day consumers expect to be able to shop anywhere, at any time, and from any location. Above all, consumers are thorough in searching for the right price and expect multiple, flexible delivery options. That means they may browse the merchandise in-store in order to touchfeel-try the product, buy it online, make the payment online and ask for the delivery while leaving the store. On top of that, savvy consumers are becoming increasingly choosy and expect a tailored, personal shopping experience. On account of this, retailers are expected to meet these demands, regardless of the channel the consumer is using. The report further argues that, this is changing the shopping scene that people are accustomed to. Consumers, offline retailers and online retailers are all playing their role in the move towards Omnichannel retail. While mobile shoppers are not excluding the instore experience, the bricks-and-mortar customers are also not avoiding using their tablet or mobile device to compare prices, product offerings, and purchasing terms. Hence if consumers are moving around and across various channels, so should retailers. Because of all these developments a single-channel retailing is no more relevant.

The consumers are clearly showcasing identifiable desires and increasingly subscribing to specialized retail communities. They are openly endorsing the brands they like. Today customers are browsing and buying more on their

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)

………………………………………………………………………………………………………………………………

Commenting on the findings of annual report jointly published by RAI (Retailer’s Association of India) & Octane Marketing which is titled as-2016 India Retail eMarketing Study: A Path to Revolution, Kumar Rajagopalan (Retailers Association of India (RAI) and Octane Marketing, 2016) , CEO of RAI, said that, retail is one of the few sectors in India which has been showing promising signs of digital innovation. Here one of the key driving factors is the new & evolving digitally savvy consumers. While Punit Modhgil (Retailers Association of India (RAI) and Octane Marketing, 2016), Director & Co-Founder-Octane Marketing opined that, retailers will have rethink shopper loyalty to create reasons for shoppers to come to their stores. And this is where digital marketing is helping to create sustained engagement with likeminded consumers who either buy online or find a reason to visit a retail store. In addition, it helps generate qualified leads and is equipped with smart analytics that helps retailers track the ROI of their digital investments. According to Gaurav Mahajan (2016), President (apparel business) at Raymond, the consumer today moves seamlessly between the digital and physical world and technology will further intensify this trend in a disruptive manner. All brands and retailers have realised that they need to find a way not only to respond to this but also to treat this is an opportunity for positive disruptive progress. Gaurav Mahajan further added that, digital and Omnichannel coupled with exclusive business outlets (EBOs) have been at the forefront of Raymond’s strategic agenda,

which eventually led the brand to a CAGR of 20-25 % for the last five years, for its apparel portfolio. Alec J. Dorman (2013) has research found that brick-and-mortar retail is highly relevant in the Omnichannel retail revolution. The positive relationship between brick-and-mortar investment and web traffic indicates that physical stores play crucial role in attracting consumers. The researcher argued that the retailers which actively invest in their physical locations are rewarded with greater web traffic, which this study establishes as a prerequisite for generating internet revenues. A larger amount of purchases online is also shown to correlate positively with gross profit margins, which shows that a strong online and physical presence strengthens the retail brand. Qi Yong-zhi (2014) argues that, traditional retailers should consider breadth of channel choice, content consistency and process consistency. For breadth of channel choice, customers are increasingly switching to other channels at any stage of the buying and enjoy the expected shopping experience. For instance, customers can put the order online and receive the deliver offline. The purchase can be made online and merchandise can be returned or exchanged offline. Or customers may touch-feel-try the merchandise in the offline store but buy online. For content consistency, retailers should maintain consistency of merchandise information, price, promotion and stock across the various channels. For process consistency, different channels should provide 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)

………………………………………………………………………………………………………………………………

same service quality and quick service to customers. Prashant Chaudhary (2016) in his book titled-Retail Marketing in the Modern Age has opined that, smart Omnichannel marketing is about understanding your consumers’ tastes-preferences and matching the products and overall shopping experience to their expectations and convenience. This enables the consumers to shop seamlessly, online and off-line. The author stated that, the stores are getting digitized and consumers will just key-in the size and design that they want, and an app will help them to get exactly what they are looking for. Here the author further argues that, brick-andmortar retailers need to invest in technology for making their physical outlets more vibrant by providing enhanced shopping experience and brand engagement. Here, they can leverage the technology and strategically bridge the gap between the online and offline channels. For instance in January 2016 Dubai based Landmark Group (home to leading brands

like Lifestyle and Max) launched its flagship E-Commerce initiative, LandmarkShops.in, in India, aimed at making shopping household Landmark Group brands simpler, easier and more convenient. Commenting on this initiative, Kabir Lumba (2016), Managing Director, Lifestyle International Private Limited said that, the department based retailer are extremely delighted to launch LandmarkShops.in. Kabir Lumba stated that, both Max and Lifestyle have a strong loyal customer base by the virtues of the customer experience, product offering and brand equity the company have established over the years. The MD of Lifestyle International further added that, with “LandmarkShops.in” the group is looking forward to increase the market reach of these brands by making them accessible to customers across the country, including the cities where these brands have not yet established a physical presence. It also increases the convenience of shopping, as the customers can buy the products at the click of a button.

Gap Analysis-

Gap analysis Sr. No.

1

Author/institution and title of the study Michael Hemsey (Omnichannel Loyalty- Designing the Ultimate Customer Experience)

Year

2012

Main areas of study Here the researcher has focused on one variable that is, optimized loyalty programs and its impact on the engagement at each and every touch-point that meet the expectations of each

Gap The researcher has not taken other influencing factors like social media, mobile app, and Point-ofsale etc.

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)

………………………………………………………………………………………………………………………………

customer.

2

Alec J. Dorman (Omni-Channel Retail and the New Age Consumer: An Empirical Analysis of Direct-toConsumer Channel Interaction in the Retail Industry)

3

Deloitte (The Omni-channel opportunityUnlocking the power of the connected consumers)

4

Rina Hansen

However the other variables are not taken into consideration. This Here the researcher lefts with the opportunity establishes positive to research on how the relationship between brickother parameters like 2013 and-mortar investment and social media, mobile app web traffic indicates that and point-of-sale etc physical stores play crucial when integrated with role in attracting consumers. each other influence the consumer engagement and resultant loyalty behaviour This is more of study on consumer behaviour and This study deals with impact generalised in its of integration of various a approach. Also there is channels on the purchase 2014 no specific focus on the journey, brand awareness, fashion category and the loyalty behaviour and the context (that is overall value. 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 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.

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)

………………………………………………………………………………………………………………………………

5

DigitasLBi's (Connected Commerce Survey 2015)

6

Deloitte (Omnichannel retail A Deloitte Point of View)

7

PwC (They say they want a revolution-Total Retail 2016)

This is more of study on consumer behaviour and generalised in its This research studies the approach. Also there is latest retail trends and 2015 no specific focus on the shopper's expectations around fashion category and the 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 these channels on and its impact, into customer engagement 2015 consideration. It also explains and loyalty. Also, this how the consumers are using 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 buying behaviour in the journey of shopping and context of fashion 2016 buying. It also discusses products and the about how the Omnichannel innovative services that approach of retailing is are being provided by the shaping the new consumer online and niche fashion behaviour players

8

Paul M. Di Gangi and Molly Wasko (Social Media Engagement Theory: Exploring the Influence of User Engagement on Social Media Usage)

This study delves into the role of User Generated Content (UGC) through social media 2016 and how it creates the new forms of value and competitive advantage.

The researchers has not incorporated the other communication channels and impact of the integration of all these channels on consumer engagement and competitive advantage

9

Here the researcher Qi Yong-zhi Omnichannel retailing is (Empirical study on affecting the traditional multi-channel retailers brick-and-mortar and 2016 service quality and why they should consider customer loyalty of breadth of channel choice, retailers) content consistency and process consistency

Though this is comparatively well comprehensive study and incorporates almost all the variables, but it leaves the scope for further investigation about how these factors in an integrative way can enhance the shopping

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)

………………………………………………………………………………………………………………………………

experience for the brickand-mortar fashion retailers

Identification and Selection of Variables: This literature review identifies a major gap in the research regarding the impact of Omnichannel retailing (integration of various communication channels and customer touch-points) in the context of fashion retailing. Also there exist an opportunity (hence a research gap) to investigate, the importance of this approach for traditional brick-and-mortar fashion retailers, in the context of increasing online shopping and rising expectation of customers after the entry 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 touchpoints 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

are chosen. All these variables have a positive impact on the customer engagement when deployed in an integrated way. Theoretical frameworkThere is significant impact of “integration of various communication channels/ touch-points” [like- In-store touch points, online channels like Website, shopping portal/ marketplace, Point of Sale (POS), Social Media networks, and mobile Apps] on the “customer engagement

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)

………………………………………………………………………………………………………………………………

Engaging shopping experience through Integration of-

Acquire the customers

In-store touch points, online channels like company Website, shopping portal/ marketplace presence, Point of Sale (POS) experience, Social Media networks, and mobile Apps

Growing

Customer Engagement

Integrated Loyalty Programmes Retaining

Figure 1- Theoretical framework - The Omni-channel way of marketing in retail Objective of the studyThe literature review and the resultant gap analysis shows that, though many research and survey has happened on how the Omnichannel way of retailing is transforming the retail industry; there exists an opportunity to re-visit this subject matter in the current scenario of fashion retailing. Today, it can be observed that, the online fashion retailers and niche fashion players have increased the customer expectations towards a fashion retailer. Customers today are more demanding and in this scenario, the loyalty is at stakes. Hence the challenge in-front of brick-and-mortar fashion retailers is not only to meet the increased customer expectations but also to exceed this “new normal” by engaging them through the channels of their choice. So, the objective of this study is to understand the impact of integration of

chosen variables on the customer engagement and resultant shopping experience. Here the researchers essentially investigates into the influence of integration of various touch-points and communication channels like- In-store touch-points, online channels like company Website, shopping portal/ marketplace presence, Point of Sale experience(POS), Social Media networks, and mobile Apps- on the customer engagement and the resultant customer loyalty. HypothesisThis is a secondary research essentially based on the literature of review, so hypothesis has not been formulated. Findings – It is observed that, traditional retail has been helped by the growth of digital marketplaces as they have heightened

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)

………………………………………………………………………………………………………………………………

brand awareness. While on the other side, the online fashion retailers, both mainstream and niche players, has also raised expectations when it comes to the shopping experience by exposing customers to the latest technology and services. So to benefit from the growing customer demand for fashion, traditional brick-and-mortar retailers have therefore have to change the way they run their business. Today retailers are serving to the “connected customers” whose mobile device has become their new personal shopping assistant, even when they are inside the store. On the other side, researcher observed that a significant number of these customers still prefer to touch, feel and try products before buying. This clearly implies that an online-only model or offline-only model is not enough to generate the desired customer engagement and shopping experience. So, in the age of this digital era “bricks” need to get integrated with “clicks”. The barriers between the online and offline are beginning to disappear. The factors that are catalysing this paradigm shift are digital technologies like web, mobile, Analytics, and Cloud computing and Artificial Intelligence Etc. Hence the Omnichannel model of retailing is the future-present of retail. Managerial implicationsIn the burgeoning competitive fashion retailing scenario, the brick-and-mortar fashion retailers need to find innovative ways to connect with their audience and

offer them a relevant proposition. Technology enabled infrastructure helps in integration of channels and gives new relevance to brick-and-mortar stores. However the most important thing is that technology is not be an end, but a medium to enhance high-quality customer experience. The importance of the hedonic elements in the fashion shopping experience has to be established, in congruence with different technologies that lead to creation of an enjoyable fashion shopping experience. So the online channel should promote use of interactive and new technologies. Mobile connectivity via smartphones, tablets and wearable devices enables consumers to browse and shop anytime, anywhere, and mobile commerce is expanding rapidly. It is believed that, as consumers become more experienced in shopping online, specifically from the portals of niche fashion retailers; they will expect a similar experience in stores. As a result, the store experience must be redefined and its role should evolve, as it is becoming one part of a larger and more connected customer experience. As the shoppers are now used to a much wider range of purchasing options, it is more crucial than ever for the fashion retailers to guide purchase decisions by virtue of integration of various channels. Here they need to offer value beyond the label price of the merchandise they are selling. If a customer perceives an excess of value in a transaction, they will be more likely to share their shopping experiences with the fashion brand, among other like-minded prospects. This is very necessary to convert customers

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)

………………………………………………………………………………………………………………………………

into brand advocates and achieving patronage loyalty.

thereby

ConclusionHence the study suggests the retailers to review their Omnichannel strategies to stay relevant. Technological advancements are becoming key components to win new customers so retailers should review their Omnichannel strategy to stay ahead. As the Omnichannel shopping becomes pervasive, embracing these new business formats and adapting to the technologyenabled changes in consumer behaviour can enhance the competitive edge of brick-and-mortar fashion retailers. These competitive advantages have the right potential to enable them to face the competition from mainstream and niche online fashion retailers in a sustainable 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 one side they need to leverage their physical setup to offer an attractive shopping experience; on the other they need to embrace the Omnichannel model of retailing. This is essentially to offer an integrated shopping experience across various channels, preferred by the customer. The Omnichannel model of retailing enhances the customer engagement and eventually leads to increased customer loyalty. ContributionThis study contributes to the existing body of knowledge by virtue of the

insights it brings to the table. These insights are based on pragmatic aspects of contemporary brick-and-mortar store based fashion retailing. On accounts of findings, the researchers suggest the brick-and-mortar fashion retailers is leverage the physical nature of the store in order to provide touch-feel-try experience and simultaneously maximise the value by integrating various touch-points and communication channels. By this approach the retailers can enhance the “Overall shopping experience” by providing personalized products and services. This approach of marketing will equip them to nullify the challenges posed by online fashion retailers and niche fashion players. Findings of this study delve into optimal role of brick-andmortar stores on various fronts and dimensions of fashion retailing.

LimitationsThis study is essentially based on the review of existing literature that is available on the subject under consideration. The literature incorporated research articles/ books chapters/ newspaper articles and interviews with the industry leaders/ experts. Because of time and other constraints the primary research in this area is not done by the researchers. There is one more major limitation which is nothing but the sufficient market evolution and awareness about the innovative products that are being provided by niche fashion players.

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)

………………………………………………………………………………………………………………………………

Scope for future researchThis study takes the context of burgeoning online fashion retailing and entry of niche fashion retailers in order to prove the importance of integrated shopping experience. The theoretical construct introduced in this research article provides a natural guide to future research. It is typically, a new domain for researchers wherein they can undertake an empirical research in order to support or challenge the findings of this study. After this, the further research in the domain will gradually move to deeper levels. Much research also remains to be done on topics like impact of niche fashion players on the expectations of shoppers from brick-and-mortar fashion retailers. BibliographyAli, S. (2016, October 8). Voonik: A fashion app, for every woman [Business Standard]. CA Technologies. (2016). Keeping Score: Why Digital Transformation Matters Report (Corporate Report). Retrieved from https://www.ca.com/us/rewrite/articles/digital -transformation/keeping-score-why-digitaltransformation-matters-report.register.html Chaudhary, P. (2016). Retail Marketing in the Modern Age (1st ed.). SAGE Publication Inc. Deloitte. (2014). The Omni-channel opportunity- Unlocking the power of the connected consumers (Corporate Report- A report for ebay). Retrieved from https://www2.deloitte.com/content/dam/Deloi tte/uk/Documents/consumerbusiness/unlocking-the-power-of-theconnected-consumer.pdf Deloitte. (2015). Omni-channel retail A Deloitte Point of View (Corporate Report).

Retrieved from https://www2.deloitte.com/content/dam/Deloi tte/se/Documents/technology/Omni-channel2015.pdf Di Gangi, P. M., & Wasko, M. (2016). Social Media Engagement Theory: Exploring the Influence of User Engagement on Social Media Usage. Journal of Organizational and End User Computing, 28(2), 53–73. https://doi.org/10.4018/JOEUC.2016040104 DigitasLBi. (2015). Connected Commerce Survey 2015 (Corporate Report). Retrieved from http://www.digitaslbi.com/connectedcommerc e2015/ Dorman, A. J. (2013). Omni-Channel Retail and the New Age Consumer: An Empirical Analysis of Direct-to-Consumer Channel Interaction in the Retail Industry (Theses paper- CMC Senior Theses). Claremont McKenna College, Claremont Colleges. Retrieved from Paper 590. Ganguly, P., & Gooptu, B. (2016, October 9). Niche online fashion retailers take on the big boys of e-commerce. The Economic Times. Retrieved from http://retail.economictimes.indiatimes.com/ne ws/e-commerce/e-tailing/niche-onlinefashion-retailers-take-on-the-big-boys-of-ecommerce/54475486 Google-A.T.Kearney. (2016). Digital Retail in 2020: Rewriting the Rules (Corporate Report). Hansen, R. (2015). Towards a digital strategy for omni-channel retailing (PhD Series 13.2015). LIMAC PhD School Copenhagen Business School, Denmark. Retrieved from http://openarchive.cbs.dk/xmlui/bitstream/han dle/10398/9139/Rina_Hansen_2ed.pdf?seque nce=3

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)

……………………………………………………………………………………………………………………………… Hemsey, M. (2012). Omnichannel LoyaltyDesigning the ultimate Customer Experience (Whitepaper). St. Petersburg: Kobie Marketing Inc. Retrieved from http://www.kobie.com/thoughtleadership/omnichannel-loyalty.pdf Lumba, K. (2016). Dubai-based retail conglomerate Landmark Group launches LandmarkShops.in its flagship E-Commerce initiative (Press Release). Mahajan, G. (2016, June 23). Everywhere retailers [Business Standard]. Retrieved from http://www.businessstandard.com/article/management/everywhere -retailers-116062301173_1.html Manglore, S. (2016, November 8). India tops in digital transformation business impact scorecard. The Hindu Business Line. Retrieved from http://www.thehindubusinessline.com/todayspaper/tp-info-tech/india-tops-in-digitaltransformation-business-impactscorecard/article9321292.ece Natarajan, G. (2016, July). Bring in “Digital Culture” to survive: Ganesh Natarajan to businesses [The Hindu Business Line]. Retrieved from http://www.thehindubusinessline.com/infotech/bring-in-digital-culture-to-surviveganesh-natarajan-tobusinesses/article8845093.ece Piotrowicz, W., & Cuthbertson, R. (2014). Introduction to the Special Issue: Information Technology in Retail: Toward Omnichannel

Retailing. International Journal of Electronic Commerce, 18(4), 5–16. Prabhakar, V. (2016, August 8). Ticking the cross-channel box [Business Standard]. Retrieved from http://www.businessstandard.com/article/management/ticking-thecross-channel-box-116080700636_1.html PwC. (2016). They say they want a revolution-Total Retail 2016 (Corporate Report). Retailers Association of India (RAI) and Octane Marketing. (2016). A Path to Revolution- 2016 India Retail e-Marketing Research (Corporate Report No. 4th Annual Study). Retrieved from Report Reference No: RAIOCT201. Shah, C. (2016). Indian branded apparel (Corporate Report). CLSA. Retrieved from https://www.clsa.com/idea/indian-brandedappearl/ Sharma, V. (2016, August 9). Content Strategy: Here’s what can make a brand memorable or forgettable. Financial Express. Retrieved from http://www.financialexpress.com/industry/co mpanies/content-strategy-heres-what-canmake-a-brand-memorable-orforgettable/341731/ Yong-zhi, Q. (2014). Empirical study on multi-channel service quality and customer loyalty of retailers. Journal of Electronic Commerce in Organizations, 12(4), 1. https://doi.org/http://dx.doi.org/10.4018/jeco. 2014100101