multichannel retailing
DESCRIPTION
Multichannel Retailing. Chelsea Kjerstad. Multichannel retailers sell merchandise or services through more than one channel. Stores Catalogs Internet. Stores. Browse Touch & feel Pay cash Instant gratification Personal service Entertainment & interaction Reduction in risk. Catalogs. - PowerPoint PPT PresentationTRANSCRIPT
Multichannel RetailingChelsea Kjerstad
•Stores
•Catalogs
•Internet
Multichannel retailers sell merchandise or services through more than one
channel.
Stores• Browse
• Touch & feel
• Pay cash
• Instant gratification
• Personal service
• Entertainment & interaction
• Reduction in risk
Catalogs•Convenient• “magalogs”
•Safe
•Portable
Internet•Convenient
•Safe
•Personalization
•Multiple assortment
•Consumer reviews• Virtual
communities
• Brand consistency
• 3D imagery
• Providing services▫ www.rei.com/adventures
Increasing Conversion Rates A
conversion rate is the percentage
of consumers who buy a product
after viewing it
online.
Multichannel Retailing1. Offers opportunity to
overcome limitations of existing retail format
2. Reaches new markets3. Builds “share of wallet”4. Enables insight into
consumers’ shopping behavior
Overcoming Existing Format•Size of store & assortments
offered
•Inconsistent execution
•Catalog limitations
Increasing Share of Wallet
Share of wallet is the percentage
of total purchases made by a customer from that retailer.
Store
Web site
Catalog
5%19% 43
%
16%
11%
6%
Percentage indicates proportion of customers browsing in one channel and purchasing in another.
Effective Operation1. Develop assortments & manage inventory
2. Manage store operations & employees
3. Distribute merchandise & accept returns effectively
4. Undertake nonstore retail activities
5. Process orders electronically
6. Provide seamless customer experience across channels
DisintermediationManufacturer selling directly to
consumers
Manufacturer
Consumer
Retailer
Multichannel Issues•Technology upgrades
•Brand image
•Pricing
•Shopping experience
•Assortment & consumer expectations