Exploring Omnichannel Retailing (eBook)

Dr Wojciech Piotrowicz (PhD Brunel, MA Gdańsk, PGDipLATHE Oxon) is Associate Professor in Sustainable Supply Chains and Social Responsibility, at Hanken School of Economics and HUMLOG Insitute, Helsinki, Finland. In addition he was elected as International Research Fellow at the University of Oxford, Saїd Business School and is a member of the Wolfson College.  His research is related to information systems, logistics, supply chain management, performance measurement and evaluation, with focus on transitional countries and retail contexts.  Wojciech has considerable experience as member of large international research projects within both the public and private sectors, working with organisations such as Intel, BAE Systems, the European Commission and Polish government. He is recipient of Outstanding and Highly Commended paper awards from Emerald Literati Network for Excellence.Dr Richard Cuthbertson is a Senior Research Fellow and Research Director at the Oxford Institute of Retail Management at Saïd Business School, University of Oxford and Vice-Principal of Green Templeton College, University of Oxford.His research interest lies in understanding and assessing the challenges of the increasingly digital world on retail, particularly through technology innovation and the use of customer data. His work is international in scope, in particular looking at how retail practice and policy are developing in countries like India and China, and he regularly acts as a consultant to retailers and governments. He is author of over 100 published articles and has worked with many companies, including Tesco, Sainsbury’s, P&G, Casino, T-Mobile, BP, Abbey, IBM, KPMG and BCG. Richard is a Board member of the Charity Retail Association. He was awarded the Emerald Literati Network Award for Excellence (twice) and the Pegasus Prize for eBusiness Future Insights (2006).

Preface 5
Contents 6
Editors and Contributors 8
List of Abbreviations 11
Exploring Omnichannel Retailing: Common Expectations and Diverse Reality 13
1 Introduction 13
2 Reality, Limitations in Implementation of Omnichannel Retailing 14
3 Chapters in This Book 15
3.1 Crafting and Implementing Omnichannel Strategy 17
3.2 Country Level Studies 18
3.3 Omnichannel and Service Quality 18
3.4 Communication with Customers, Print vs Online 19
3.5 Technologies in Omnichannel 19
3.6 Delivery and Fulfilment in Omnichannel 19
4 Conclusions 20
References 21
Crafting an Omnichannel Strategy: Identifying Sources of Competitive Advantage and Implementation Barriers 23
1 Introduction 23
2 Constructs and Definitions 25
3 Methodology 27
4 Analysis: Five Retail Problems Concerning Omnichannel Retailing 30
4.1 Contextualization Problem: Societal Contribution 31
4.2 Integration Problem: Crafting a Seamless Customer Experience 33
4.3 Resource Management Problem: Internal Sources of Sustainable Competitive Advantage 38
4.4 Competitiveness Problem: External Sources of Sustainable Competitive Advantage 42
4.5 Coordination Problem: Implementation Barriers of an Omnichannel Strategy 45
5 Synthesis: The Omnichannel Strategy Triangle 48
6 Conclusions, Implications for Academia and Practice 53
6.1 Implications for Academics 54
6.2 Implications for Practitioners 54
References 55
Implementation of Omnichannel Strategy in the US Retail: Evolutionary Approach 59
1 Introduction 59
2 Literature Review 60
2.1 Implementation of Omnichannel Strategy: Retail Business-Model Innovation 61
3 Methodology 63
3.1 Sample Selection and Justification 63
3.2 Data Analysis Procedure 63
3.3 Research Limitations 65
4 Findings 65
5 Discussion 74
6 Conclusions 76
References 79
Does Service Quality Perception in Omnichannel Retailing Matter? A Systematic Review and Agenda for Future Research 82
1 Introduction 83
2 Literature Review 84
2.1 Defining Omnichannel Retailing 84
3 The Importance of Quality in Omnichannel Retailing 86
4 Research Approach 88
5 Findings 89
5.1 In-Store Quality Dimensions 89
5.2 Digital Quality Dimensions 91
5.3 Integration Quality Dimensions 98
6 Future Research, Challenges and Opportunities 99
7 Conclusion 101
7.1 Recommendations for Practice 101
7.2 Recommendation for Future Research 102
References 103
Drivers for Channel Integration and Omnichannel Strategy: Evidence from the Leading Grocery Retailer in Turkey 109
1 Introduction 109
2 Literature Review on Channel Integration and Omnichannel Strategy 110
3 Turkish Retail Sector 112
4 Methodology 113
4.1 Data Analysis 114
5 Findings 114
5.1 Drivers for Channel Integration 115
5.1.1 Changing Dynamics in Retailing Industry 115
5.1.2 Changing Shopping Habits 115
5.1.3 Increasing Need for Productivity in Logistics and Supply Chain Processes 116
5.2 Implementation of Omnichannel Strategy 116
5.2.1 From Multichannel Strategy to Omnichannel Strategy 117
5.2.2 Advanced IT Solutions and Data Integration 117
5.2.3 Integration of Business Processes 118
5.2.4 Customer Perception 119
6 Discussion 119
7 Conclusions 121
Appendix: Questions for Focus Group Study 122
References 122
Development of Omnichannel in India: Retail Landscape, Drivers and Challenges 125
1 Introduction 125
2 Retail Landscape in India 126
3 Market Penetration: Percentage of Traditional, Organized and Online to Total Trade 127
4 Online Retailing 127
5 From Multi-Channel to Omnichannel Retailing 127
6 Online Retail in India 129
6.1 E-Retail Growth Phases 129
6.2 Similarities and Differences with the Chinese Market 130
6.3 Online Consumer Behaviour 131
6.4 Challenges Faced by e-Commerce Companies in India 132
7 Online Retail Terminology: Showrooming, Webrooming, m-Commerce, Apps 135
8 Analysis of e-Retail Sector Using Porter´s Five Forces Framework 136
9 Migration of Business Model from Owned-Inventory to Marketplace Platform for Online Retailers 137
10 Shift from Multichannel Retailing to Omnichannel Retailing 138
10.1 Physical Stores Foraying into Online Retailing 140
10.2 Online Retailers Opening Physical Stores 142
10.3 The Hyperlocal e-Commerce Model 142
11 Logistics Innovations in the e-Commerce Industry 143
12 Recommendations and Conclusion 145
References 147
The Development of Digital Distribution Channels in Poland´s Retail Pharmaceutical Market 148
1 Introduction 148
2 Methodology and Data Collection 150
3 Literature Review 151
4 Poland´s Pharmaceutical Market 152
4.1 Industry Potential and Market Trends 152
4.2 Macro-environmental Factors Analysis 154
5 Distribution Channels in the Polish Pharmaceutical Market 159
5.1 General Characteristics 159
5.2 Wholesaling 160
5.3 Pharmacies 162
5.4 Non-pharmacy Retailing 163
6 Online Pharmacies in Poland 164
6.1 Development of E-pharmacies in 2004-2015 164
6.2 Case Study: DMZ 167
6.3 Consumer Trends and Omnichannel 170
7 Summary and Conclusions 171
References 174
The Use of Mobile Technologies in Physical Stores: The Case of Fashion Retailing 177
1 Introduction 177
2 Omnichannel Retailing 178
3 The Mobile Device in Omnichannel Retail 179
4 Consumer-Facing Mobile Technologies in the Retail Store 182
5 Theoretical Models of Technology Adoption 192
6 Discussion 195
7 Conclusions for Practice 197
8 Conclusions for Academia and Future Research Directions 197
References 198
Futurising the Physical Store in the Omnichannel Retail Environment 204
1 Introduction 204
2 Literature Review 205
2.1 The Role of the Physical Store in the Omnichannel Scenario 205
2.2 The Store Experience 207
2.3 The Use of Technology 208
2.4 The Consumer 211
3 Methodology 212
4 Findings and Discussion 213
4.1 Role of the Physical Store in the Omnichannel Scenario 213
4.2 Evolution of Physical Retail Formats 214
4.3 Current and Future Role of Technology in the Physical Store 215
4.4 Forms of Technology Used in the Physical Store 216
4.5 Presence of Other Channels in the Physical Store and How Are They Integrated 217
4.6 The Future Experience in Physical Stores 218
4.6.1 Customer Service 219
4.6.2 Delivering Experience Through the Design of the Physical Space 219
4.7 Physical Store ROI Measurement Shift 221
4.8 Role of the Consumer in the Physical Store 222
4.9 Best Practice Fashion Physical Stores 223
4.10 Future Change in Fashion Shopping Experience 224
5 Conclusions and Recommendations 224
6 Limitations and Further Research 227
References 227
Retail Promotional Communication: The Comparative Effectiveness of Print Versus Online 231
1 Introduction 231
2 Print Versus Online: The Role of the Medium 233
3 Theoretical Background 234
4 Innovation in Promotion and Store Flyers 237
4.1 Traditional Flyers 237
4.2 Digital Flyers 240
4.3 Flyer Aggregators 241
5 Methodology 242
5.1 Experiment: Research Design 243
5.2 Subgroup Analysis 244
5.3 Research Limitations 245
6 Findings 245
6.1 Preliminary Study: Print Versus Online Flyers in Italy 245
6.2 Results from the Experiment 246
7 Discussion 248
8 Conclusions and Future Research Directions 249
References 251
A Framework for Omnichannel Differentiation Strategy. Integrating the Information Delivery and Product Fulfilment Requirements 256
1 Introduction 257
2 Literature Review 258
2.1 Omnichannel Retail 258
2.2 Information Delivery and Product Fulfilment 258
3 E-commerce and Emergence of Omnichannel in Malaysia 259
4 Research Design 260
5 Findings and Discussion 261
5.1 Company Background 261
5.2 The Omnichannel Strategic Deployment 262
5.3 The Omnichannel Differentiation Strategy 264
5.4 Managing Customer Relationship 264
5.5 Creating and Retaining Customers Trust 265
5.6 Knowledge and Technology Alignment 266
5.7 Ensuring Tight Security and Confidentiality of Customer Data 266
5.8 Issues and Challenges 267
6 Conclusion 267
References 269
Last Mile Framework for Omnichannel Retailing. Delivery from the Customer Perspective 271
1 Introduction 271
2 Omnichannel Grocery Retail Design 272
3 Main Delivery Models 273
3.1 Home Delivery 274
3.2 Click and Collect 275
3.2.1 Click and Collect: In and Near the Store 275
3.2.2 Click and Collect: Automated Collection Points 275
3.2.3 Click and Collect: Solitary Collection Points 276
3.3 Postal, Courier and Other Transport Services 276
3.4 What Else to Consider for Delivery and Collection? 277
3.4.1 Delivery Charges 277
3.4.2 Delivery Time and Slots 277
3.4.3 Back Office Operations 278
3.4.4 Preparation for Delivery: Consolidation 278
3.4.5 Route Planning 278
4 Methodology 279
5 British Experience: From Customer View-Point 279
5.1 British Grocery Retail Market 279
5.2 Delivery Options 280
5.3 Home Delivery 281
5.4 Click and Collect 283
6 Synthesis: Customer-Centric Last Mile Framework for Omnichannel Retailing 286
7 Dealing with Problems and Exceptions 288
8 Conclusions 289
8.1 Conclusions for Academia 289
8.2 Conclusions for Practice 290
8.2.1 Questions for Discussion and Review 290
References 291