CHAPTER 3: MULTI CHANNELS RETAILING
1. Definitions
- retail channels: is the way a retailer sells and delivers merchandise and services to its
customers. Eg: internet, mobile, catalogs, direct mail, direct selling, television home
shopping, vending machines, etc.
- multichannel retailing: using more than one channel to sell and deliver merchandise and
services to consumers
- omni-retailing is a coordinated multichannel retail offering that provides a seamless
customer experience when using all of the retailer’s shopping channels
2. Retail channels
2.1. Store channels (Offline)
2.2. Non-store channels (Online + Offline)
2.2.1. Internet, electronics and mobile
2.2.2. Catalog
2.2.3. Direct response TV channel (DRTV)
2.2.4. TV home shopping
2.2.5. Direct selling
2.2.6. Automated (vending machines)
3. Relative benefits of retail channels
3.1. Store channels (Offline)
Advantages
- touching and feeling the products
- personal service
- risk reduction
- immediate gratification
- entertainment and social experience
- browsing
- cash payment
Disadvantages
Depends on location to drive traffic
Costly: hiring location, staff, electronics, and water bill,....
Easy to steal or immitate business strategies from competitors
3.2. none-store (both online and offline)
3.2.1. Internet, electronics and mobile
Advantages
Fast, convenient, open 24/7, flexible and more interaction, fast feedback and better
customer service
More information, wide selection, customize and compare
Disadvantages:
Customers need to wait for days to have products delivered, and no standard for service
provided  may be cheated by wrong Photoshop pictures and feedback
Can not experience the product/ or service waste money on bad items/ service
3.2.2. Catalog
Advantages
Online catalog: Easy to get huge potential customers, save time and money, more updated
and illustration
Safety and convenient, anywhere and anytime, more illustration and immagination
Disadvantages:
Offline printed catalog: wastes huge money, can not be updated immediately
Low-response rate
3.2.3. Direct response TV channel (DRTV)
3.2.4. TV home shopping
3.2.5. Automated (vending machines)
Advantage
Fast, convenient, save money and time (no staff and small space)
Disadvantage
Disable, easy to be stolen, can not be used, no one in charge to solve the solution if machine
does not work, depend on location where putting this machine
4. Challenges facing multichannel retailers
- how to make a consistent shopping experience through multi-channels --> if not -->
lose customer’s trust and loyalty
- need to have good management methods through multi-channels to avoid: product
loss, inventories, operation, staff, delivery, after-sale service …. --> to save time and
money
- maintain interaction through multi-channels
4.1. Multichannel supply chains and information systems
--> Struggle to provide an integrated shopping experience
Because various channels demand various skills and unique resources
4.2. Centralized vs decentralized multichannel retailing
-centralized: selling the same products at the same prices through the same
distribution system for all channels (the same target market and customers)
- decentralized: different organization manages each channel so that are tailored to
different target markets
4.3. Consistent Brand Image across Channels
--> Provide consistent brand image and private - label merchandise across all
channels
4.4. Merchandise Assortment
Different assortments are often appropriate for each of the channels
Store: taste of foods, touch and feel
Online: see and color
4.5. Pricing
Online < offline (save operation costs, electricity or staff,…)
Low online costs can compete well with competitors to attract customers
4.6. Reduction of Channel Migration
Showrooming occurs when a consumer knows about the products and brands and
searches for the same product at the lower price
To avoid showrooming:
- better customer services
- unique relevant information
- promote private-label merchandise that can be purchased only from this retailer
- reputation and trust
5. Multichannel shopping in the future
6. Other selling channels
- live stream on the Internet
- newspaper/ magazine (printed/ digital)
- cold call (gọi điện thoại chào hàng/ telesale)
- consignment (ký gửi hàng hóa)
- auction (bán đấu giá)
- trade exhibition (triển lãm thương mại)
- flea market/ festival