Smart Latfan Can Be Done By TONIGHT PLZ,, just one paragraph

GOAL ….

INTRODUCTION

The phenomenon of the Internet has created a new platform for businesses to emerge and execute their product lines, allowing consumers to partake in a whole new shopping experience.  These businesses range in various industries including the Apparel and Textiles sector (Ho, Au, & Newton, 2003). First Research Industry Profiles boasts in their Internet & mail-order retail quarterly report (2015) an enormous annual revenue in e-commerce sales alone, which is approximately $1.5 trillion; and by 2018, it is slated to incline to about $2.5 trillion in global retail sales (First Research Industry Profiles, 2015). As of 2014, China and the U.S. markets have taken the role as leaders of the e-commerce sector, making up for more than 55% of the worldwide online retail sales. Other countries that followed in ranking were the UK, Japan, and Germany (First Research Industry Profiles, 2015).

Many shoppers have picked up the trend of online retailing; a recent online survey has indicated that about 81% of Internet users bought a product via online services. The future outlook of online retailing is prosperous and predictions have been made that retail sales will constitute about 15-20% of general retail profits (Yoh, Damhorst, Sapp, & Laczniak, 2003). It has also been noted that the recent advancements in technology have created a new method for handling transactions with consumers as well as conducting businesses with suppliers; resulting in new ways to manage the supply chain as well (Ho et al., 2003).

Mail order sales and catalog ordering have also paved the way for new forms of online retailing (Yoh et al., 2003). Mail order and catalog retailers tend to target a specific demographic market for their products; they send out their merchandise catalogs to a list of customers who have shown past purchase behavioral attributes. Existing retail brands and newly formed retail companies have transitioned into mail-order retailing since the advent of the Internet, including Victoria’s Secret catalogues and Amazon.com (First Research Industry Profiles, 2015).

Studies based upon the Theory of Reasoned Action by Fishbein and Ajzen have shown that prior experience and knowledge with an innovation can ultimately contribute to the consumers’ outlook and beliefs for further adoption of other innovative trends (Yoh et al., 2003). This idea expounds upon how consumers who have utilized mail order catalogs and other in-home shopping experiences have also ventured into other avenues such as Internet retail purchasing (Yoh et al., 2003).

        For the purpose of deepening knowledge of the apparel industry’s involvement in e-commerce and traditional brick and mortar strategies, we will explore these two broad avenues by focusing on how the apparel industry has been affected as well as how consumers play a significant role by the adoption of innovative commerce strategies. Although many businesses are adopting technological advancements to reach their target market, certain retail companies have remained true to tradition by maintaining their success through procurement of brick and mortar shops. We will further elaborate through this document the advantages and disadvantages of conducting retail businesses via e-commerce, brick and mortar stores, and omni-channels; as well as explore the strategies of distinctive global retailers who have not adopted online retailing, yet have remained prosperous.

THINGS TO HIGHLIGHT:

Statistics on apparel retail in e-commerce, in brick stores

The textile and apparel industry

Brick and mortar retail shops: history and current developments

Electronic commerce: history and adoption

How is Success obtained in the Global marketplace?

Brick and Mortar Retailing Strategies: Experiences, Current Issues, and Challenges

        The brick and mortar retail experience

        Despite the advent of e-commerce, shopping in a physical store environment is still the preeminent way in which consumers acquire goods, and only 9% of total goods are purchased online (Morse, 2011). Unlike e-commerce, a retail space has the potential to immerse the customer in many diverse aspects of a brand’s image through interactivity with sales associates, sounds, textures, and even scents (Rigby, 2011). Because of this appeal to customers’ emotional and sensory experiences, brick and mortar still has these and other advantages over e-commerce.      

For example, in a brick and mortar space customers can try on goods, make easy exchanges and returns, and experience instant visual, tactile, and interpersonal gratification in an immersive environment (Morse, 2011). Consumers still shop at brick and mortar stores because of their desire to purchase tangible goods in an environment they perceive as reliable and convenient (Rajamma, Paswan, & Ganesh, 2007). Those who prefer shopping in brick and mortar stores attach value to the enjoyment of shopping and the confidence they perceive in the quality of goods sold in a store, where they can inspect and evaluate the merchandise (Rajamma, Paswan, & Ganesh, 2007).

        In addition to the actual goods sold, the role of customer service continues to be vital to brick and mortar retailing, especially in the forms of customer loyalty, customer satisfaction, and price guarantees (Grewal & Levy, 2009). If a retailer provides a positive experience for the customer, then the retailer is more likely to be successful (Grewal & Levy, 2009). Although customers can still feel deceived by products through overzealous marketing and pushy salespeople, consumers still feel that online shopping is riskier (Riquelme & Román, 2014). Therefore, if traditional retailers invest in the expertise patience, and ongoing training of salespeople, shoppers will return because they perceive less of a risk in the brick and mortar environment (Riquelme & Román, 2014).

        Current issues in brick and mortar retailing

        Current issues in brick and mortar retailing focus on serving diverse markets, providing excellent customer service, and considering the emergence of omnichannel retailing. As retailing globalizes, retailers have innovated in developing, emerging, and developed markets. Each of these markets faces diverse challenges from consumer, industry, legal, and supply chain perspectives (Reinartz et al., 2011). For example, in developed markets, retailers have innovated through promoting customization options and excellent customer service, while in emerging markets retailers have encouraged small business development through increased distribution and strategic partnerships (Reinartz et al., 2011).

        Even though there are many innovations in brick and mortar retailing, traditional retailers must consider “omnichannel” strategies and turning the physical shopping experience into an “entertaining, exciting, and emotionally-engaging experience” through various strategies (Rigby, 2011, Retrieved from https://hbr.org/2011/12/the-future-of-shopping/ar/pr%3E ). With the rise in popularity of omnichannel retailing, adding brick and mortar stores to existing frameworks such as websites or catalogs increases brand revenues in a global setting (Pauwels & Neslin, 2015). Basically, retailers should be enhancing and amplifying the shopping experience along with integrating online platforms (Demko-Rihter & Halle, 2015). As these platforms integrate, retailers are shifting towards a “concierge model” that enhances the existing benefits of traditional brick and mortar shopping as well as edited merchandise assortment and personalized customer service (Brynjolfsson, Yu, & Rahman, 2013, p. 24).

        Challenges to brick and mortar retailing

        While traditional brick and mortar retailers are responding to the rise in popularity of e-commerce, price comparison, ease, product selection, product reviews and ratings are more effective online (Morse, 2011). Also, brick and mortar retailers have limits in the merchandise assortment and volume they have in stock, unlike online retailers. While traditional brick and mortar retailing relies heavily on daily engagement to promote customer loyalty, this is not necessarily the case for online or omnichannel retailers (Grewal, Levy, & Kumar, 2009). Finally, it is difficult to start a new business model incorporating online sales and retaining focus on a company’s image and bottom line (Chan & Pollard, 2003).

References (NOTE: the indent must be hanging)

Brynjolfsson, E., Hu, Y., & Rahman, M. (2013). Competing in the age of omnichannel retailing. Mit Sloan Management Review, 54(4), 23-29.

Chan, P., & Pollard, D. (2003). Succeeding in the dotcom economy: Challenges for brick & mortar companies. International Journal of Management,20(1), 11.

Demko-Rihter, J., & Halle, I. (2015). Revival of high street retailing – the added value of shopping apps. Amfiteatru Economic, 17(39), 632-645.

First Research Industry Profiles. (2015). Internet & mail-order retail - quarterly update 8/10/2015. Austin: Hoover’s Inc. Retrieved from http://libproxy.csun.edu/login?url=http://search.proquest.com.libproxy.csun.edu/docview/1702890458?accountid=7285

Grewal, D., & Levy, M. (2009). Emerging issues in retailing research. Journal of Retailing, 85(4), 522-526.

Grewal, D., Levy, M., & Kumar, V. (2009). Customer experience management in retailing: An organizing framework. Journal of Retailing, 85(1), 1-14.

Ho, D. C. K., Au, K. F., & Newton, E. (2003). The process and consequences of supply side virtualization. Industrial Management & Data Systems, 103(5), 423. Retrieved from http://search.proquest.com/docview/234920497?accountid=7285

Morse, G. (2011). Retail Isn't Broken. Stores Are. Harvard Business Review, 89(12), 78-82.

Pauwels, K., & Neslin, S. (2015). Building with bricks and mortar: The revenue impact of opening physical stores in a multichannel environment. Journal of Retailing, 91(2), 182-197.

Pendle, F., & Stiles, R. (2008). Global market review of online apparel retailing - forecasts to 2014: 2008 edition: Market trends, 2006-2014. (). Bromsgrove: Aroq Limited. Retrieved from http://search.proquest.com/docview/212386914?accountid=7285

Rajamma, R., Paswan, A., & Ganesh, G. (2007). Services purchased at brick and mortar versus online stores, and shopping motivation. Journal of Services Marketing, 21(3), 200-212.

Reinartz, W., Dellaert, B., Krafft, M., Kumar, V., & Varadarajan, R. (2011). Retailing innovations in a globalizing retail market environment. Journal of Retailing, 87, S53-S66.

Rigby, D., 2011. The Future of Shopping. Harvard Business Review, [online] Available at:<http://hbr.org/2011/12/the-future-of-shopping/ar/pr>

Riquelme, I , & Román, S. (2014). The influence of consumers’ cognitive and psychographic traits on perceived deception: A comparison between online and offline retailing contexts. Journal of Business Ethics, 119(3), 405-422.

Yoh, E., Damhorst, M. L., Sapp, S., & Laczniak, R. (2003). Consumer adoption of the internet: The case of apparel shopping. Psychology & Marketing, 20(12), 1095-1118.