CHAPTER:2

MULTI CHANNEL RETAILOR.

What is multi channel retailers.

Multi channel retailer are those retailer that sell merchandise or services through more than one channel. These are store base method and non store base method its mean electronic method .

(1) Store base method

Store channel is a physical location of the business which customer direct inter to the shop and purchase the product. In store base method his many benefits that customer can taken it, these are

I. Searching: when a customer want a product they go to a store to see what is available before they decide what to buy.

(b) Touching and feeling product.The greatest benefits of offering by store is the

opportunity to customer to use their sense. it mean they touching it ,smelling the product, tasting the product and seeing the product and after this according to our choices they select a product.

(c) Personal services.

• The next benefits of the store base method is the personal services, when a customer inter the store ,sales representation still have the capability to providing meaningful information. For example if a suit look good for you, they suggest a tie with a dress shirt.

(d) Entertainment and social experience

Store providing entertainment for different customer because it is a market place which different friend and different retailer meet together, so in these market place they can take experience about the product and about the one retailer services and the next retailer services.

(e) Immediate gratification(fulfillment)

• Store have the advantage of allowing customer to get the merchandise immediately after they buy it, for example if a person is fever, you are not going to wait for a day or two days, you can purchase quickly the medicine on the spot.

(f) Risk reduction.

• When customer purchase product in store the physical presence of the store assure them that if any problem with the product so these store will be there to receive defective product and issue it the customer credit. So risk chance will be minimize in store base method.

(2) Internet channel.

Shopping over the internet provide convenience and shopping types of product ,internet channel his the potential to offer a greater selection of product and more information available about the product and services. There are some benefits in the internet channel these are,

(a) Broader selection.

One benefits of the internet channel, compare with the other channel is the large number of product available to consumer .By shopping on the internet customer can visit to the internet and select merchandise.

(2) More information to evaluate merchandise.

An important services offer by internet retailer is to provide a provision of information to our customer for the purpose of helping customer to make better purchase decision. Those customer which they purchase product electronically they search different web pages until they have taken a complete information before the decision.

Analysis toward multichannel retailer

Multi channel retailer method can be used and evaluate for the purpose of this reason.

(1) Overcoming limitation of an existing format. One of the greatest constrain(limit,restrict) facing store base retailer is the size of their store, by blending store with internet retailer can dramatically expand the assortment offer to the customer .for this purpose many retailer focus to multi channel method.

(2) Expending market share.

Adding an electronic channel retailer particularly

attract customer because they target many market and a lot of customer can search it and take decision for the purpose of product.

Different assortment available different information available so both parties can take benefits.

(3) Increasing share of wallet

Although offering an electronic channel retailer increase share of wallet( the merchandise of total purchase made by the customer) it show the total purchasing of the customer and total visit time.

(4) Checking customer shopping behavior.

An electronic channel can provide valuable and quick information about the customer satisfaction and dissatisfaction. Although in this method retailer can also take quick

information about the product,price,colour ,and about the size of the product.

Capabilities needed for multichannel retailer.

Until the turn of the past time there ware no internet facilities for this purpose many retailer use store base method. but now the time is change. today retailer focus to operate our business activities through multi channel method. to effectively operate and realize the benefits of multi channel retailing firms needed to have skills in the following area.

(a) Developing assortment.(b) Managing employees in different location

Con..

(c) Distributing merchandising in different location.

(d) Needed of web sites(e) Processing order electronically(f) Operating communication and information

system which connect customer and different channel member.