multi channel retailing
TRANSCRIPT
Multichannel Retailing
Retail Channels for Interacting with Customers
Store
Non-store
However, most retailers are are now using more than one channel to reach their customers
Multichannel Retailers are those retailers that sell their merchandise or services through more than one channel
Q. Which is the largest multi-channel retailer in the country??
Store Channel
Stores offer a number of benefits to customers that they cannot get when shopping through catalogues or the internet
Comprehensive BrowsingTouch & FeelPersonal ServiceCash PaymentEntertainment & Social ExperienceImmediate GratificationRisk Reduction
Catalogue Channel
Catalogue channel provides some benefits to customers that are not available from the store or the internet channel
ConvenienceSafetyQuality of visual presentations
Catalogue Channel
Catalogue Channel
Internet ChannelShopping over the internet provides the convenience and
safety benefits offered by catalogs and other home-based non-store formats. However, the internet channel has the following advantages over store and catalogue channels:
Broader SelectionMore information to evaluate merchandisePersonalization
Personalised Customer Service Personalised Offering
Selling merchandise with “touch & feel” attributes
Perceived Risks in Electronic Shopping
The two critical perceived risks in electronic shopping are:
Security of card transactions Potential privacy violations
Evolution towards Multichannel Retailing
Overcoming limitations of an existing format
Stores ----- Internet enabled kiosks ------ Better service, better sales
Expanding Market Presence
Increasing share of wallet
Insight into customer shopping behaviour
Capabilities needed for Multichannel Retailing
Capabilities Store based retailers Non-store retailers
Develop assortments and manage inventory
High High
Manage People in remote locations
High Low
Efficiently distribute merchandise to stores
High Low
Present merchandise effectively in a printed format and distribute catalogues
Medium High
Present merchandise effectively on a website
Medium High
Process orders from individual customers, electronically
Medium High
Efficiently distribute merchandise to homes and accept returns
Medium High
Integrate information systems to provide a seamless customer experience
Low High
Issues in Multichannel Retailing
Integrated shopping experience
Brand image
Merchandise assortment
Pricing