Drivers and barriers of omni-channel retailing in China

Abstract

Purpose The purpose of this paper is to explore the drivers and barriers to omni-channel retailing in China, and attempts to understand how companies formulate their business strategies during their transformations to omni-channel retailing. Design/methodology/approach This study adopts an exploratory case study approach to investigate the omni-channel retailing transformations of two well-established Chinese fashion apparel retailers. The study draws on multiple sources of evidence, comprising: interviews with eight business executives from three major operational departments; on-site observations in firm’s retail stores, factories and distribution centres; and secondary data review of firm business reports, news, whitepapers and archival records. The findings are established through a consistent within-case data analysis and cross-case comparison. Findings The study reveals that the two retailers formulated different strategies in developing their omni-channels, and exhibited different degrees of success. The similarities and differences in the drivers, as well as the barriers, were analyzed and compared in this study. Operational variations (i.e. enablers and inhibitors) due to the unique context of the Chinese market were also explored. The findings reveal that coherent leveraging firm resources and capabilities from the three perspectives – marketing, logistics and supply chain, and organizational management – is critical to the full implementation of omni-channel retailing. They provide relevant managerial insights that can assist firms in formulating appropriate strategic action plans during the transformations. Originality/value As a theoretical contribution, this paper identifies a set of drivers and barriers for omni-channel retailing in the developed market, and classifies them into three categories: marketing; logistics and supply chain; and organizational management. The empirical-based qualitative analysis reveals the key factors impacting on omni-channel retailing within the Chinese market, and suggests a series of practical implications for local retailers planning to embark on omni-channel retailing.

How Does Channel Integration Affect Consumers’ Selection of Omni-Channel Shopping Methods? An Empirical Study of U.S. Consumers

“…Channel integration is one of the key success factors of omni-channel retailing implementation. For retailers being able to effectively apply the omni-channel strategy, they should integrate all channels seamlessly, and the integration needs to be implemented at all levels of logistics and marketing, and even internal business operations [57][58][59][60]. When online and offline channels are successfully integrated, businesses are able to maxmize the benefits of each channel, reduce cannibalization, and promote synergy, and as a result, businesses would reach better performance [61,62].…”

Unravelling Consumer Responses to Omni-Channel Approach

“…MC is if two or more channel participants are used, but the interaction between channels is low while CC is a mix between MC and OC [3]. According to Ye et al [47], MC is usually identified as the non-integrated business, while OC requires concrete and absolute integration. OC takes a broader perspective on the level of channel integration, considering not only the number of channels but the interactions between consumers and retailers [9].…”

“…The retailers use the order information to place the actual product to the place that This OC feature can also benefit consumers. OC consumers can acquire accurate information about product quality, terms and price, and availability that supports them to make a better purchase decision [6], [47]. Previous studies in this area aim mainly at understanding the drivers of consumers' channel choice by describing variables affecting consumers' different behavior in the presence of OC.…”

A moderated mediating mechanism of omnichannel customer experiences

“…With multiple channels and interactive touchpoints during customer shopping journeys, it is crucial for retailers to apply omnichannel strategies to serve customers with seamless switching among all available channels and across every touchpoint (Ieva and Ziliani, 2018; Keyser et al , 2020; Savastano et al , 2019; Shen et al , 2018). According to Lee et al (2019), the ultimate goal of omnichannel retailers is to create a well-integrated and unified customer experience at any time, any place and through any channel (Kuppelwieser and Klaus, 2020; Lynch and Barnes, 2020; Jocevski et al , 2019; Picot-Coupey et al , 2016; Ye et al , 2018). Historically, the concept of the customer experience has been studied in different contexts of retailing, from physical-store retailing (Mohd-Ramly and Omar, 2017; Terblanche, 2018) to e-retailing (Izogo and Jayawardhena, 2018; Pandey and Chawla, 2018; Rose et al , 2012), m-retailing (McLean et al , 2018) and even multichannel retailing (Lemon and Verhoef, 2016).…”