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TF2023201- Dissertation

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TF2023201- Dissertation

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nisha.surgeped
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Dissertation

Topic: Future of Retail stores with the given rise in E-Commerce


(Specifically the Apparel, Fashion & Luxury Industry)

1
A. Abstract
This study looks at how traditional retail establishments are adjusting to e-commerce's
growing influence in the apparel, fashion, and luxury sectors. A thorough theoretical
framework that incorporates the Coexistence Theory, the Porter Five Forces, and the
Technology Acceptance Model serves as the foundation for the research. In light of the
digital revolution, the study investigates the tactics used by retailers to stay competitive and
relevant.

The main goal is to comprehend how traditional retail companies are adapting to the growth
of e-commerce by utilizing technology, improving customer experiences, maintaining
premium brand appeal, and incorporating social responsibility. The study also aims to
pinpoint knowledge gaps and offer suggestions for new lines of inquiry and commercial
plans.

Key themes are discovered through qualitative analysis of interviews with 15 people. Virtual
reality and interactive displays are key components of experiential shop design, which
promotes immersive in-store encounters. The temporary online collections and virtual
presentations that make up the Online Luxury Experience emphasize the efforts made by
luxury brands to strike a balance between accessibility and exclusivity. The emphasis on
catering to various consumer bases while maintaining brand exclusivity is emphasized by the
concept "Balancing Accessibility and Exclusivity". The importance of tailored guidance and
technological integration in boosting customer happiness is highlighted through personalized
experiences. To appeal to morally conscientious consumers, social responsibility and
sustainability emphasize ethical sourcing and sustainable operations. The relevance of
technology in constructing seamless omnichannel experiences is highlighted by technology
integration.

According to the interviews, conventional retailers are using a variety of ways to deal with
the problems brought on by the dominance of e-commerce. Retailers may improve consumer
experiences and competitiveness by fusing experiential design, technology, personalization,
luxury branding, and social responsibility. Businesses may want to think about developing
immersive in-store experiences, implementing individualized technologies, and adhering to
morally and environmentally sound business practices. The report suggests more research be
done on how customers react to experiential shop designs and how technology integration
affects consumer loyalty.

2
Contents
A. Abstract.................................................................................................................................2

B. Introduction...........................................................................................................................6

Context and Relevance...........................................................................................................6

Target Audience.....................................................................................................................6

Structure of the Report...........................................................................................................6

Research Question and Objectives.........................................................................................7

C. Literature review...................................................................................................................9

Consumer Behavior Shifts and E-Commerce Impact............................................................9

Enhancing In-Store Experiences: The Role of Technology...................................................9

Maintaining Luxury and Exclusivity Online........................................................................10

Personalization, Social Responsibility, and Self-Expression...............................................10

Innovative Technological Solutions: Augmented Reality and Beyond...............................11

Evolving Trends in Cross-Channel Integration....................................................................11

Cultivating Brand Loyalty through Omni-Experience.........................................................11

Identified Gaps and Areas for Further Exploration..............................................................12

D. Theoretical framework........................................................................................................14

Porter's Five Forces..............................................................................................................14

Technology Acceptance Model............................................................................................14

Coexistence Theory..............................................................................................................14

Research Contextualization..................................................................................................15

E. Research design & methodology.........................................................................................16

Research Question Integration.............................................................................................16

Research Approach and Methods.........................................................................................16

Sampling and Participants....................................................................................................17

Data Collection.....................................................................................................................17

3
Data Analysis and NVivo Coding........................................................................................17

Validity and Reliability........................................................................................................18

Ethical Considerations.........................................................................................................18

F. Findings & analysis..............................................................................................................19

Introduction..........................................................................................................................19

Theme 1: Timing and ways of digitalization.......................................................................19

Theme 2: Impact of Digitalization.......................................................................................21

Theme 3: Consumer Perception of Physical Retail..............................................................22

Theme 4: Consumer trust in digitalization...........................................................................23

Theme 5: Striking Balance Between Exclusivity and Accessibility....................................24

Theme 6: Omnichannel Marketing......................................................................................24

Theme 7: Exploring profitability.........................................................................................25

Theme 8: Enriching retail experience trough technological innovations.............................25

G. Conclusions & recommendations........................................................................................27

Recommendations for Shaping Future Research and Business Strategies..........................28

Limitations: Addressing Research Constraints....................................................................28

H. References...........................................................................................................................30

I. Appendices.......................................................................................................................33

Codebook from Nvivo..........................................................................................................33

4
B. Introduction
The domain of retail, in particular within the clothing, fashion, and luxury industries, has
undergone a dramatic upheaval as a direct result of the rapid expansion of e-commerce in the
ever-changing face of business. This change has been spurred by the advent of online
shopping. Because of the profound changes that the digital age has brought about in the way
in which customers experience and interact with retail, it is imperative that traditional retail
shop tactics be thoroughly reexamined. This research goes deep into the complexities of this
paradigm change, analyzing the delicate relationships between traditional and virtual
shopping experiences, while concentrating on the strategic moves of the industry's most
important actors.

Context and Relevance


This study's historical context is the enormous upheavals brought about by the rapid
expansion of e-commerce platforms. Traditional retail businesses have been forced to
reevaluate their value propositions and navigate this era of digital domination as a result of
the ease and variety that internet shopping offers (Goyal et al., 2022). Brick-and-mortar
businesses' adaption methods are a crucial area of investigation as they work to stay
competitive and relevant. Understanding how merchants react to this transformation is crucial
for businesses, researchers, industry analysts, and legislators in an age where technology
permeates every aspect of life.

Target Audience
A wide range of people, including academics, business professionals, industry executives,
and policymakers, are served by this study paper. It provides information about the practical
effects of e-commerce's rise and its implications for retail shop strategy for academic
researchers. Actionable insights for shaping decision-making processes and directing
reactions to customer preferences will be found by industry practitioners. A thorough
understanding of the dynamics that are changing can help regulators and stakeholders in the
retail sector develop regulatory frameworks and industry standards.

Structure of the Report


The study is designed to give readers a comprehensive understanding of the interactions
between traditional brick-and-mortar stores and e-commerce in the apparel, fashion, and
luxury sectors. It is divided into several parts that combine to create a convincing story:

5
1. Introduction: The topic is introduced, the study is contextualized, and its relevance,
intended audience, and general structure are described in this section.
2. Literature Review: This section looks at the research and studies that are now known
on how retail has evolved in the digital age. This research provides a critical analysis
of how consumer behavior, technical improvements, and corporate reactions have
changed through time.
3. Research Methodology: In this section, the research approach is described in depth,
along with the methods utilized for data collection, participant selection, and NVivo
coding.
4. Findings and Discussion: The empirical data gathered from the interviews is
condensed in a manner that is consistent with the inquiries of the study. Each research
topic is examined while taking into consideration the opinions of the participants,
highlighting significant themes, patterns, and perceptive insights.
5. Implications and Recommendations: The implications of our findings for
conventional retail outlets, luxury enterprises, and the industry at large are discussed
in this section. It offers beneficial guidance for managing the competitive retail
industry successfully.
6. Conclusion: The final section summarizes the key findings and contributions of the
research, discussing its implications for academia, industry, and future research
directions.

Research Question and Objectives


This study's key research question is: How are traditional retail outlets responding to e-
commerce's growing dominance, particularly in the apparel, fashion, and luxury
industries, in order to stay competitive and relevant?

To address this question, the primary objectives of this research are as follows:

• To thoroughly examine the methods used by conventional retail businesses to develop


individualized, engaging in-store experiences that appeal to modern customers.

• To critically analyze how luxury brands strategically use technology and online platforms to
maintain their reputation for exclusivity and grandeur in the e-commerce space.

• To examine the complex linkages between retailers' initiatives to improve in-store


experiences and adjust to the development of e-commerce while taking into account the

6
changing consumer demands for individualized interactions, social responsibility, and self-
expression.

This study aims to offer a nuanced and thorough understanding of the complex interaction
between traditional retail and e-commerce within the garment, fashion, and luxury industries
by methodically addressing these refined research objectives.

7
C. Literature review
In recent years, there has been a significant amount of discourse surrounding the convergence
of the Apparel, Fashion, and Luxury Industry with the internet domain. The ongoing
expansion of e-commerce has led both researchers and industry experts to focus on
understanding the changing dynamics, difficulties, and opportunities that emerge when
traditional retail establishments intersect with the digital domain.

Consumer Behavior Shifts and E-Commerce Impact


The advent and widespread adoption of electronic commerce platforms have had a significant
influence on consumer behavior, fundamentally transforming the manner in which
individuals engage in shopping activities and connect with various products. Purwanto's
research from 2022 indicates that consumers' preferences have changed noticeably as a result
of the ease, accessibility, and diversity of goods made available through online shopping. The
aforementioned change is especially apparent in the clothing, fashion, and luxury industries
since digital touchpoints enable customers to compare a variety of options and make wise
decisions without having to leave their homes (Gerster et al., 2021). The rise of e-commerce
has forced traditional retail outlets to reevaluate their goals, leading to a variety of adaptive
techniques intended to enhance the experience at the store and lessen the allure of online
shopping.

Enhancing In-Store Experiences: The Role of Technology


To address the issues caused by e-commerce, traditional retail businesses have started to
reevaluate their value proposition. Using technology to create immersive in-store
environments is one noteworthy strategy. Interactive displays, in accordance with the
academic work of Mele and Russo-Spena (2022), serves as dynamic touchpoints that
efficiently engage clients by offering them product information, stylistic suggestions, and
interactive experiences. These displays successfully straddle the physical and digital worlds..
Retailers are increasingly employing virtual reality (VR) as a revolutionary tool to facilitate
various customer experiences, such as virtual product trials, outfit visualization, and
assessment of product fit and attractiveness (Berberović et al., 2022). These technology
interventions serve to not only enhance the shopping experience but also facilitate customer
participation and interaction.

8
Maintaining Luxury and Exclusivity Online
The complexities associated with preserving exclusivity in the internet era provide significant
hurdles for premium brands and fashion shops. The advent of e-commerce has significantly
broadened the geographical scope of business operations, enabling companies to cater to a
global customer base. However, it is worth noting that the luxury industry, which feeds on the
principles of scarcity and exclusivity, has managed to maintain its appeal and desirability
despite the increased accessibility provided by e-commerce platforms. Luxury brands
strategically negotiate their e-commerce strategies within the framework of this complex
equilibrium. According to Seo et al. (2022), the utilization of limited-time online collections
enables luxury brands to uphold their image of exclusivity through the creation of a
perception of urgency and scarcity. Concurrently, virtual displays offer a novel venue for
luxury businesses to present their expertise, artistic skills, and brand legacy to a worldwide
audience (Batat, 2019). These techniques highlight the crucial significance of e-commerce in
both facilitating broader accessibility and preserving the perception of exclusivity.

Personalization, Social Responsibility, and Self-Expression


The growing demands of modern customers for personalized experiences, ethical awareness,
and individuality expression are tightly entwined with the blending of e-commerce and brick-
and-mortar retail outlets. Retailers are using technology to adapt to changing consumer needs,
who are looking for more individualized experiences and goods. Retailers are now using a
variety of techniques, like individualized advice and specialized goods, to meet the specific
tastes of their clients as a result of this shift toward individualization. Li et al. (2020) looked
at the prevalence of tailored product recommendations. Due to their capacity to increase
customer satisfaction and engagement by showing goods that are pertinent to the customer's
browsing history and interests, these suggestions have grown in popularity.

Moreover, contemporary consumers possess a heightened awareness of ethical and


sustainability factors, leading businesses to include social responsibility into their business
strategy. The use of ethical sourcing and sustainable practices, as proposed by Venkatesh et
al. (2020), not only aligns with the values of environmentally conscious consumers but also
enhances brand authenticity and differentiation. According to McGrath et al. (2021), retailers
are actively improving transparency by effectively conveying information regarding their
supply chain, so promoting trust and responsibility in a time when consumers are increasingly
conscious and informed. Within the realm of luxury fashion, the implementation of
community participation and philanthropic endeavors serves to cultivate a sense of purpose

9
and foster emotional bonds, thereby forging a connection between businesses and socially
aware consumers, while concurrently developing a unique brand identity (Danielsen et al.,
2023).

Innovative Technological Solutions: Augmented Reality and Beyond


The incorporation of technology within the retail sector beyond the mere utilization of
interactive displays and virtual reality. The utilization of augmented reality (AR) has emerged
as a novel and inventive method to enhance the in-store experience by effectively integrating
the physical and digital domains. According to Romano et al. (2021), augmented reality (AR)
applications provide clients with the opportunity to engage in virtual apparel try-ons, explore
various styles, and see the appearance of things on themselves, all within the physical store
environment. The immersive engagement offered by this experience not only contributes to
the overall pleasure of customers, but also cultivates a sense of enjoyment and novelty, hence
promoting the likelihood of customers returning and recommending the experience to others
through word-of-mouth. The investigation of the efficacy and consumer perspectives about
augmented reality (AR) as a revolutionary technology inside physical retail settings presents
a promising area for further study.

Evolving Trends in Cross-Channel Integration


The dynamic between online and physical retail channels is in a constant state of evolution,
with cross-channel integration being recognized as a crucial strategic necessity. In the
contemporary age of interconnected purchasing encounters, consumers frequently interact
with various touchpoints prior to finalizing a buy determination. The concept of
"webrooming" and "showrooming" highlights this phenomenon, wherein individuals engage
in online research prior to making a purchase in a physical store or vice versa. The
comprehensive examination of cross-channel behavior, encompassing the various elements
that shape the choice of channels and the consequences for purchasing choices, yields a
sophisticated comprehension of the contemporary retail environment (Iyer and Soni, 2023).
Furthermore, the examination of how retailers strategically manage these channels in order to
boost client engagement, loyalty, and conversion rates is an intriguing area for additional
scholarly investigation.

Cultivating Brand Loyalty through Omni-Experience


In a contemporary period characterized by customers' expectations for uniform and engaging
encounters across many platforms, the notion of a "omni-experience" arises as a pivotal

10
factor to be taken into account. The concept surpasses the limitations of simple multi-channel
approaches and instead emphasizes the development of a cohesive and uninterrupted
consumer experience across many points of interaction. Companies who demonstrate
exceptional proficiency in providing a seamless and integrated customer experience across
many channels, sometimes referred to as an omni-experience, are able to cultivate stronger
emotional bonds with their customers, resulting in increased brand loyalty and a higher
likelihood of repeat purchases. The investigation of methods, difficulties, and consequences
pertaining to the successful application of omni-experience in retail leads to a thorough
comprehension of how merchants can effectively engage customers and differentiate
themselves in a highly competitive marketplace (Ahmad et al., 2022).

Identified Gaps and Areas for Further Exploration


The extant body of literature provides useful insights into the evolving dynamics of retail
outlets in response to the expansion of e-commerce. However, it is important to note that
there are various gaps and avenues for future research that warrant exploration. The advent of
technology has facilitated the creation of immersive in-store experiences. However, there is
still a necessity to thoroughly investigate consumer reactions to these methods and their
influence on purchasing behavior. Furthermore, it is imperative to conduct comprehensive
research on the problems and opportunities associated with integrating online and physical
retail channels, especially within the realm of premium goods.

Furthermore, it is worth delving deeper into the complex relationship between social
responsibility, sustainability, and the purchasing decisions made by consumers, as these
concerns have become increasingly significant. Further examination is needed to thoroughly
analyze the impact of virtual interaction tools, including social media platforms, on
promoting self-expression and establishing a sense of community inside the framework of
conventional retail establishments.

The ongoing discussion over the interdependent connection between traditional retail and e-
commerce within the Apparel, Fashion, and Luxury Industry is always developing, driven by
advancements in technology, changing customer desires, and strategic adjustments. This
study aims to make a significant contribution to the existing conversation by examining the
methods and adaptations utilized by traditional merchants. This research endeavors to reveal
the complex relationship between traditional retail tactics and the growing influence of e-
commerce by analyzing the viewpoints of industry actors. The strategies and innovations

11
used by retailers in the current period of transformative change are influenced by the dynamic
interplay among technology, luxury branding, consumer experiences, and social
responsibility.

12
D. Theoretical framework
A comprehensive theoretical framework that draws on Porter's Five Forces, the Technology
Acceptance Model (TAM), and the Coexistence Theory provides the study's foundation.
These theoretical frameworks provide a strong foundation for investigating how traditional
retail outlets in the apparel, fashion, and luxury sectors are evolving as a result of the growth
of e-commerce.

Porter's Five Forces


The Porter's Five Forces, first put forth by Michael Porter in 1980, offer a framework for
comprehending how businesses compete in their markets (Alves et al., 2020). This method
makes it simpler to comprehend how outside factors impact the retail industry's profitability
and appeal. Porter's Five Forces, which include the threat of new entrants (e-commerce
players), consumer and supplier negotiating power, the threat of substitutes (online
shopping), and the intensity of competition among present competitors, will be utilized in this
study to assess the degree of industry competition. It is possible to evaluate the bigger
industrial backdrop with the aid of this framework in order to understand how traditional
retailers are altering in order to remain competitive and relevant in the digital age.

Technology Acceptance Model


The framework includes the Technology Acceptance Model (TAM), which was proposed by
Lee et al. in 2003. A thorough knowledge of the numerous factors influencing users'
acceptance and adoption of novel technology is provided by the Technology Acceptance
Model (TAM). This method makes it easier to comprehend how customers interact with
technological features like interactive displays and augmented reality in traditional retail
settings. According to the Technology Acceptance Model (TAM), the perceived value and
simplicity of a technology are key determinants of its acceptance. This theory provides a
framework for investigating how consumers react to technological advancements in the retail
sector.

Coexistence Theory
The Coexistence Theory, which is based on research by Barabás et al. (2018), serves as a
conceptual framework for understanding the beneficial relationship between traditional brick-
and-mortar retail outlets and e-commerce. This theoretical framework puts out the idea that
instead of competing directly, the two channels could actually strengthen one another's

13
performance by utilizing the distinct benefits that each platform has to offer. The Coexistence
Theory is relevant to the current research because it provides information on how traditional
retail businesses might use e-commerce to increase their reach and engagement. This strategy
enables them to take use of online platforms' benefits while still offering clients the tangible
and experiential elements that may be lacking in the digital world.

Research Contextualization
The chosen theoretical framework offers an organized method to direct research design,
analysis, and conclusion interpretation. It provides a lens through which the conclusions and
suggestions can be combined. TAM and the Coexistence Theory offer insights into the micro-
level dynamics of customer behavior and technology adoption within the growing retail
sector, whilst Porter's Five Forces framework offers a macroscopic picture of the industrial
landscape. These three frameworks operate in concert to provide a comprehensive knowledge
of how traditional retail establishments are handling the benefits and problems brought on by
e-commerce's growing dominance in the apparel, fashion, and luxury industries.

This theoretical framework will be used as a compass as the study develops to locate themes,
code interview answers, and derive significant conclusions. The incorporation of these
theoretical viewpoints aims to increase our knowledge of the strategic adjustments needed by
established traditional retail businesses in response to the industry-reshaping digital
transformation.

14
E. Research design & methodology
Research Question Integration
The central focus of this study revolves around a crucial research inquiry: "How are
traditional retail establishments adapting their tactics to maintain their competitiveness and
relevance in light of the increasingly dominant presence of e-commerce, particularly within
the dynamic context of the Apparel, Fashion, and Luxury Industry?" The fundamental
question at the heart of this study forms the foundation upon which the investigation is built,
and it is easily integrated into the chosen theoretical framework, which includes Porter's Five
Forces, the Technology Acceptance Model, and the Coexistence Theory. The methodology
employed in this study incorporates various dimensions, including Consumer Behavior,
Technology Adoption, Experiential Marketing, Luxury Branding, Social Responsibility, Self-
Expression, and Coexistence. This comprehensive approach enhances the study's design and
analysis by providing a greater level of richness and depth.

Research Approach and Methods


This study uses a qualitative research methodology, which was picked to carefully examine
the complex tactics used by traditional retail businesses. The sophisticated interpretation-
based qualitative methodology is most adapted to navigating the challenging landscape of
participant perspectives, unique experiences, and profound insights. For a project of this kind
that is exploratory in character, the qualitative technique is especially appropriate (Casula et
al., 2021). As a result, semi-structured interviews, which provide participants the opportunity
to openly express and elaborate on their thoughts on e-commerce integration, adaptive tactics,
and the constantly changing retail market, are the primary method for gathering data.

This study creates a strong framework to lead the research by fusing the theoretical
underpinnings of Porter's Five Forces, the Technology Acceptance Model, and the
Coexistence Theory. This framework gives the study the flexibility and depth needed to
unearth the complexities and intricacies of the retail industry's response to the rise of internet
commerce while adhering to the three chosen theoretical views.

15
The basis for a qualitative investigation of the strategic adaptations of conventional retail
outlets within the context of the apparel, fashion, and luxury industries is provided by this
comprehensive approach, which is based on the chosen theoretical frameworks.

Sampling and Participants


Utilizing a deliberate and well executed intentional sample approach, this research endeavor
meticulously selects individuals who possess extensive experience and nuanced perspectives
in the field of the Apparel, Fashion, and Luxury Industry. The diversified composition of this
group includes retail managers, industry experts, and consumers from various backgrounds,
resulting in a comprehensive perspective that closely engages with the study issue. The
sample size of 15 participants is carefully chosen based on the idea of data saturation. This
ensures that each subsequent interview contributes valuable themes and insights to the
existing body of knowledge, while avoiding the introduction of redundant information.

Data Collection
The efficacy of the data gathering process relies heavily on the careful design of semi-
structured interviews. These interviews serve as a medium through which participants are
able to navigate their responses smoothly and elaborate on complex perspectives. In order to
maintain a high level of accuracy in capturing participants' perspectives, the interviews are
carefully recorded using audio technology and transcribed in an exact manner. This rigorous
approach guarantees the truthfulness and genuineness of the participants' statements. The
interview guide has been carefully customized to align with both the primary research
question and the theoretical framework. It effectively covers various subjects, including the
underlying strategies of adaptation, the integration of technological advancements, the
fluctuations in consumer behaviors, and the significant changes occurring within the industry.

Data Analysis and NVivo Coding


The effective analysis of transcribed interview data requires a rigorous analytical
methodology, and in this regard, the qualitative data analysis program NVivo proves to be an
indispensable resource. The coding process, which is an inherent component of this phase,
plays a crucial role in extracting relevant patterns, themes, and insights from the data. The
coding process effectively aligns with the codes and subcodes that have been produced from
the theoretical framework, therefore fostering an analytical framework that is firmly
grounded in the theoretical foundation (Howard, 2023). This alignment guarantees that the

16
analysis remains firmly rooted in the conceptual framework and research goals, fostering a
mutually beneficial connection between the empirical data and the theoretical foundations.

Validity and Reliability


Ensuring the strength and reliability of the research outcomes requires a dedicated adherence
to both internal and external validity. Member checking is utilized as a robust technique in
this undertaking, facilitating participants' entry into the domain of validation, where they
actively engage with and confirm the interpretations of their responses. Moreover, the
rigorous process of peer debriefing, together with the valuable insights obtained from
academic advisers, enhances the validity of the interpretations. In order to strengthen the
underpinnings of dependability, a trio of strategies arises. The dependability of the study is
enhanced by the implementation of systematic data collection processes, rigorous
transcription procedures, and consistent coding practices. The utilization of NVivo serves as a
means of promoting transparency by diligently recording the coding procedure and
facilitating the methodical arrangement of data (Chandra and Shang, 2019). This, in turn,
helps to minimize any potential bias on the part of the researcher and enhances the ability to
replicate the analysis.

Ethical Considerations
The ethical foundation of this research is a fundamental principle. The research is carried out
in accordance with the ethical concept of informed consent, which aims to protect the
independence of participants by providing them with clear information about the goal of the
study, the voluntary nature of their involvement, and the strict confidentiality measures in
place. The utilization of pseudonyms serves to protect the confidentiality of individuals
during every phase of the study procedure. Stringent data security protocols are implemented,
encompassing encrypted storage, password-protected devices, and regulated access to the
interview materials (Pocock et al., 2021). This study aims to adhere to the tenets of ethical
research by conscientiously navigating the research terrain with a commitment to integrity
and the safeguarding of the rights and welfare of its participants.

17
F. Findings & analysis
Introduction
The emergence of e-commerce has had a huge impact on the changing retail landscape,
notably in the areas of apparel, fashion, and luxury. Traditional retail businesses have had to
review their strategies in order to stay competitive and relevant as a result of this dramatic
shift. This study dives into the information obtained from interviews with important industry
stakeholders in order to understand the complex dynamics of this shift. These interviews have
uncovered a range of themes and codes that shed light on the complex techniques used by
retail enterprises to negotiate the coexistence of physical locations and online marketplaces.
This introduction provides a foundation for the subsequent analysis that covers consumer
perceptions, the impact of digitalization, strategies for maintaining exclusivity, omnichannel
marketing, profitability exploration, and innovative retail experiences. It provides a glimpse
into the depth of insights obtained through these interviews. The combination of these ideas
not only makes it easier to understand how the sector is doing right now, but it also prepares
the way for important business recommendations and directions for future research.

Theme 1: Timing and ways of digitalization


The rapid growth of e-commerce has had a significant impact on how the retail environment
has changed within the apparel, fashion, and luxury industries.

1. Established between 2000-10

Several participants admitted that they started their online presence in the first ten years of
the twenty-first century. Notably, in 2009 (Participant 02), TK Max increased its business
through online platforms, while in 2010 (Participant 11), Zara embraced e-commerce. These
examples indicate early adoption of the possibilities of online markets and the aggressive
steps these businesses took to gain a presence online.

2. Established between 2010-20

Participants emphasized the importance of the 2010–2020-time frame, during which the
sector saw a spike in the creation of online presence. For instance, H&M began selling its
products online in 2010 (Participant 05), and Zara also expanded its online presence around
this time (Participant 12). These incidents demonstrate how internet channels are becoming
increasingly important, and how large businesses are incorporating these platforms into their
retail strategy.

18
3. Established after Covid

Some retailers entered the online market in response to the pandemic's effects on consumer
behavior. Primark had a notable online debut in November 2022 (Participant 09),
highlighting the importance of outside forces in advancing digitization.

5. Website Only

Many participants emphasized that their retail enterprises had specific online websites. The
only means of operation for Lovisa (Participant 07), Primark (Participant 09), and H&M in
the UK (Participant 10) are their respective websites. These examples support theoretical
frameworks, in particular the Coexistence Theory, because they show how online platforms
can coexist with physical and digital channels without being in direct conflict with one
another.

6. Application Also

Retail businesses like Zara (Participant 02), H&M (Participant 03), and Lovisa (Participant
05) are utilizing the Technology Acceptance Model by incorporating mobile applications into
their strategies. In line with the framework's emphasis on perceived usefulness and simplicity
of use in promoting technology adoption, these applications promote user-friendly
experiences.

7. Social Media Presence

Participant 09 Primark and Participant 14 Zara are two examples of how social media is used
in contemporary retail strategy. In accordance with Porter's Five Forces and the Coexistence
Theory, Primark's Instagram marketing (Participant 09) indicates efforts to engage clients
through diverse online channels, while Zara (Participant 14) makes use of partnerships with
fashion-specific online platforms.

8. Marketplaces & Multi-brand Apps

Participant 01's example of retail outlets in marketplaces and multi-brand apps supports the
Coexistence Theory. These businesses are aware of the potential for these platforms to
increase their audience without necessarily replacing their physical locations.

The results highlight the diverse strategies used by retail companies to incorporate digital
platforms, taking into account various timeframes and digitalization techniques. These tactics
echo the theoretical frameworks that place an emphasis on adaptability and cohabitation and

19
show how the business has responded to changing consumer demands and technology
improvements. The study that follows will shed more light on how these findings may be
interpreted in the context of the retail industry as a whole.

Theme 2: Impact of Digitalization


The apparel, fashion, and luxury industries have seen a dramatic reconfiguration as a result of
the infusion of digitalization, which has brought with it both new opportunities and
significant difficulties.

The discussion frequently brought up the idea of increased sales. A TK Max participant
(Participant 02) said that increased sales had been directly correlated with their internet
presence. According to Porter's Five Forces, digitization can increase market share and
strengthen competitiveness, and this is consistent with those forces.

As a strategy for drawing in time-pressed customers, the alignment of digitization with the
fast-paced lifestyle of the modern world was highlighted. The participant (Participant 11)
stated that digital platforms cater to people looking for streamlined purchase experiences,
which is consistent with the idea put out by the Technology Acceptance Model that perceived
simplicity of use encourages technology adoption.

The ability to sell things that are unpopular or unavailable has become a noteworthy
opportunity. In line with the Coexistence Theory's idea of digital channels complementing
existing routes without direct competition, businesses can present products that might not
succeed in conventional storefronts by leveraging online platforms.

Several attendees acknowledged the wide-ranging reach and visibility brought about by
digitization. (Participants 04 and 12) They emphasized cutting-edge features like the "buy"
button and social media networks like Instagram. These developments align with the
Coexistence Theory's (Barabás et al., 2018) suggestion that offline and online presence
should combine for greater market penetration.

Quick shopping has become a possibility, made possible by online platforms. (Participant 06
and Participant 07) Participants attested to the usefulness of visual references for desired
products. According to the Technology Acceptance Model, which emphasizes user efficiency
as a key factor in driving technology adoption, this affinity is in line with that model.

The disadvantages of digital convenience were highlighted by challenges in the form of more
returns and exchanges (Participant 02 and Participant 05). These complications are consistent

20
with Porter's Five Forces because they increase consumer power and have an impact on
competitive dynamics (Alves et al., 2020).

Digitalization's integration resulted in complex management problems with regard to


inventory, supplies, and floor operations (Participant 01 and Participant 04). Due to their
impact on a retailer's competitive advantage through supply chain efficiencies, these
operational nuances are consistent with Porter's Five Forces.

Higher delivery times were mentioned by some participants as an unforeseen effect of


digitization (Participant 3). This supports the Technology Acceptance Model by highlighting
the fact that when timely expectations are not satisfied, the perceived utility of technology
may decline (Lee et al., 2003).

In conclusion, the integration of digitalization into the apparel, fashion, and luxury industries
creates an environment that is full of opportunities and difficulties. Our knowledge of how
the sector navigates this transforming terrain is enriched by the interaction of theoretical
frameworks, which emphasize the underlying dynamics.

Theme 3: Consumer Perception of Physical Retail


The idea that completely eliminating physical stores is impractical fits with the idea of
entrance barriers in Porter's Five Forces. It can be difficult for new competitors to reproduce
the distinctive experience due to the physical presence of stores (Alves et al., 2020).

The Coexistence Theory, which contends that online and physical channels may coexist by
offering different value, is consistent with the emphasis on the overall experience rather than
just the shopping aspect. Shopping online is convenient, but trying things on in real stores
delivers a sensory experience that goes well with it (Barabás et al. (2018).

The preference for physical stores, particularly for luxury items, lends credence to Porter's
Five Forces' claim that a physical presence can increase brand loyalty and trust. Physical
stores' exclusivity and customization align with the Technology Acceptance Model's
emphasis on individual demands and perceived utility (Lee et al., 2003).

The Technology Acceptance Model can be used to examine the trade-off between
convenience and the value of in-person shopping time. The participants' talks about striking a
balance between the convenience of online buying and the experiential value of physical
stores are made clear by the model's notion of perceived ease of use against effort
anticipation.

21
In conclusion, different theoretical frameworks and the participants' perspectives on physical
retail are in agreement. In the context of the apparel, fashion, and luxury industries, the
interaction of Porter's Five Forces, the Technology Acceptance Model, and the Coexistence
Theory offers a thorough knowledge of the complexity within the consumer perceptions of
physical retail. Together, these frameworks highlight how online and offline channels coexist,
each with unique benefits that influence consumer choices and business strategy.

Theme 4: Consumer trust in digitalization


Consumer trust in digitalization is now a key determinant of internet enterprises' success.
Although digital platforms provide accessibility and convenience, a number of issues have
surfaced that affect consumer trust and confidence in the online shopping process.

Conflict between customers' expectations and their actual experiences after obtaining the
product is a common problem. This difference may cause resentment and damage trust. This
behavior is consistent with the Technology Acceptance Model, which holds that a consumer's
decision to embrace and use a technology is influenced by the technology's perceived
usefulness and simplicity of use (Rini and Khasanah, 2021). Online firms must work to close
the gap between what customers see online and what they receive if they are to gain and keep
customers' trust.

Concerns about sizing and quality have also become apparent as problems involving trust.
Customers frequently have questions regarding how online-purchased things will fit and feel.
The lack of physical connection with items can affect buyers' capacity to effectively judge
quality, which links into the Coexistence theory. These worries can be allayed and confidence
cultivated by providing accurate product descriptions, sizing charts, and open consumer
feedback.

Deliveries that are delayed seriously endanger consumer confidence in digitization.


Customers may have doubts about the trustworthiness of internet retailers when delivery
times stated are not met. This ties to Porter's Five Forces theory since effective and
dependable logistics can give an organization a competitive edge. Maintaining confidence
requires making sure that deliveries are made on schedule and that shipment updates are
communicated clearly.

The problem of money becoming locked in is another concern pertaining to trusts. Customers
who purchase things that fall short of their expectations may have trouble getting refunds or
returns. This issue is especially pertinent to the Coexistence theory since it emphasizes how
22
important it is to match customers' offline expectations with online activities. To establish
and maintain trust, refund and return procedures must be transparent and accommodating to
customers.

Customers show caution when buying for luxury goods online because they are worried
about authenticity, value, and individualized service. Given that luxury brands are frequently
connected to exclusive in-store experiences, this is consistent with the Coexistence idea. To
overcome this reluctance, it is necessary to strategically combine individualized online
experiences with transparent pricing and assurances of product authenticity.

Theme 5: Striking Balance Between Exclusivity and Accessibility


The idea of supplying things that can only be purchased online fits with the Coexistence
Theory's tenet that online and physical channels can coexist by offering distinctive value
propositions. This approach preserves the in-store experience while catering to customers
looking for exclusive online offers.

It is consistent with the Technology Acceptance Model's emphasis on perceived utility to


allow clients to examine the most recent collections online. Customers can more easily stay
current on new collections because to the accessibility of internet platforms, which satisfies
their information needs.

Through the analysis of Porter's Five Forces, it is possible to compare the various discounting
mechanisms that the participants mentioned. The principle of industry competition, where
businesses actively differentiate themselves to keep client loyalty, is supported by
maintaining perceived value through distinctive discounting strategies (Palmatier and
Crecelius, 2019).

The Coexistence Theory's focus on exploiting internet platforms for improved customer
service is shown in strategies that uphold a unique experience, such as home delivery for
quick access to fashion. Such tactics also align with the Technology Acceptance Model,
which holds that customer acceptance of online platforms is influenced by the simplicity of
use and perceived utility (Alves et al., 2020).

Theme 6: Omnichannel Marketing


Omnichannel marketing is a complete strategy used by all kinds of businesses to offer a
seamless consumer experience across numerous media. E-commerce has become a crucial
part of this approach, acting as a crucial point of contact for customer interaction and

23
transactions. Consumer behavior underwent a dramatic change in the post-COVID era, which
hastened the adoption of multichannel strategies.

This technique increases engagement through tailored experiences across numerous platforms
in addition to catering to a larger and more international audience. The growing popularity of
promotions and team-ups in omnichannel marketing exemplifies the sector's efforts to forge
profitable alliances and boost brand recognition.

In conclusion, omnichannel marketing is now a worldwide technique adopted by a variety of


businesses, highlighting the significance of e-commerce and utilizing post-COVID behavioral
shifts. This strategy appeals to a wider audience, takes advantage of individualized
engagement, and promotes teamwork to increase growth and visibility.

Theme 7: Exploring profitability


Increased profitability across numerous enterprises has been greatly boosted by the
incorporation of online businesses. Increased sales as a result of the switch to online
platforms have translated into increased earnings. Participants from many industries
emphasize the benefit of internet sales to the financial success of their organizations.

For instance, a company that rents out luxury clothing has benefited from online sales
because luxury clothing is frequently out of reach for many people due to its high price.
Online rentals of expensive goods have democratized access and increased revenue. Similar
to this, the alliance of well-known brands like Disney and internet marketplaces has
encouraged buyers to make more expensive purchases, increasing profits (Sharma et al.,
2021).

Additionally, the jewelry shop Lovisa emphasizes that the growth of online businesses was a
major factor in its success and that having an online presence was essential to increasing
profitability. These observations support the idea that, when businesses embrace the digital
transition, an increase in online sales directly correlates with increased profitability.

Theme 8: Enriching retail experience trough technological innovations


Enhancing the retail experience through technological advancements has emerged as a key
corporate strategy to boost customer engagement and spur growth. The interaction between
customers and physical establishments has changed as a result of several technological
developments, bridging the gap between online and offline buying.

24
A strong trend has been the incorporation of virtual components into physical establishments.
Virtual reality (VR) and augmented reality (AR) technologies have the potential to
completely transform the in-store shopping experience. Through virtual try-ons, customers
can see how things would seem on them or in their homes, enhancing their decision-making
process. This is in line with the Technology Acceptance Model, which contends that a
technology's perceived utility and simplicity of use have an impact on its acceptance. These
virtual incorporations are expected to become more complex and interesting as AI and other
technologies develop.

A participant noted that interactive displays have been essential in luring clients to learn more
about products. "Click and collect" is a concept that not only unites online and offline buying
but also encourages customers to visit actual establishments. Once inside the store, customers
are exposed to a variety of items that are stocked on racks and mannequins. This is consistent
with the Coexistence idea, which holds that a seamless fusion of online and offline
experiences can have synergistic benefits that encourage customer involvement and
purchases.

Creative checkout experiences have also been made possible by technological advancements.
Even though it hasn't fully materialized, the concept of employing hand gestures to complete
transactions shows the promise for frictionless and interesting interactions. Such innovations
are consistent with Porter's Five Forces theory since they can give companies a competitive
edge and a special selling proposition.

Participants' mention of the emergence of novel concepts highlights the fluidity of retail
technology. New fashion IT startups are investigating creative strategies to let buyers
virtually try on items. This is an example of the Technology Acceptance Model, which holds
that perceived advantages and usability have an impact on people's readiness to adopt new
technology. Fashion technology may reinvent how consumers interact with products as it
develops, changing the face of conventional shopping.

25
G. Conclusions & recommendations
In order to stay competitive in the face of growing e-commerce predominance, the present
study examined the adaption techniques used by traditional retail enterprises in the apparel,
fashion, and luxury industries. The research offered new information in a variety of fields,
including Experiential Store Design, Online Luxury Experience, Balancing Accessibility and
Exclusivity, Personalized Experience, Social Responsibility and Sustainability, and
Technology Integration. The intricate techniques that retailers are using to handle the altering
retail landscape are illustrated by these interconnected themes. The study's ramifications are
wide-ranging for organizations and present opportunities for additional investigation.

Retailers' emphasis on developing comprehensive in-store experiences that go beyond


transactional encounters is shown by the growth of experiential store design. This viewpoint
is consistent with experiential marketing theory since it places an emphasis on building
relationships with clients through emotional engagement. The incorporation of interactive
displays, virtual reality, and events has the ability to build enduring bonds and distinguish
physical stores from online competitors.

From a strategic perspective, the uptake of online luxury experiences offers light on the
subtle interaction between exclusivity and accessibility. Through exclusive online collections
and virtual presentations that encapsulate the essence of the brand, luxury businesses
successfully utilize e-commerce. The Luxury Branding Theory, which emphasizes the
importance of exclusivity and scarcity in building brand identity, is in line with this strategic
balance.

Within luxury branding, striking a balance between accessibility and exclusivity is crucial.
By providing VIP access to online customers and limited-edition products via digital
channels, luxury brands increase their market presence while preserving a sense of
exclusivity. The Coexistence Theory, which contends that online and offline channels
reinforce one another to serve a variety of clients, is in accordance with this strategy.

26
Consumer behavior theory-based personalized experiences become the driving force behind
retail tactics. By bridging the gap between traditional brick-and-mortar and the digital world
and enabling virtual try-ons and customized items, technological innovations can cater to
specific consumer preferences. Including personalization increases consumer happiness and
fosters enduring loyalty.

The retail industry has prioritized ethical behavior and sustainability. Businesses that place a
high emphasis on sustainable development and ethical sourcing build significant ties with
ethical customers. The adoption of ethical principles is in line with the rising need for
ethically responsible business behavior.

The retail sector is being fundamentally transformed by technology integration. Customer


experiences are made seamless by incorporating augmented reality, artificial intelligence, and
omnichannel methods. The Technology Acceptance Model (TAM), which emphasizes
perceived usefulness and simplicity of use in fostering consumer involvement, serves as the
foundation for effective technology adoption.

Recommendations for Shaping Future Research and Business Strategies


This report provides insightful information for businesses hoping to succeed in the
competitive retail environment. Future studies might thoroughly examine consumer reactions
to experiential shop designs, concentrating on their influence on purchasing behavior and
emotional engagement, to further our understanding. Investigating how technology
integration affects customer loyalty and happiness can also provide businesses with useful
information (Taufek et al., 2023).

It is crucial to take a customer-centric stance in the world of business. Customer experiences


can be improved by using experiential components, customization, and technical
developments. Personalization options include individualized recommendations and virtual
try-ons, while enhancing in-store experiences could comprise immersive events and virtual
displays (Pangarkar et al., 2022).

Organizations can also think about incorporating sustainability and moral behavior into their
strategy plans. Consumers that care about the environment may connect with open
communication about ethical sourcing and sustainable methods, supporting brand integrity
and encouraging patronage.

27
Limitations: Addressing Research Constraints
Despite the fact that this study offers interesting findings, some restrictions should be
addressed. The generalizability of the research's findings in different situations can be
constrained by its qualitative nature. The sample size was set with purpose, although it's
possible that it doesn't accurately reflect the range of industry opinions. Participants'
responses could be influenced by social desirability bias, which would undermine the
veracity of their responses.

In conclusion, this study sheds light on the complex interaction between traditional brick-
and-mortar retail and the development of e-commerce. The themes that have been found
show the various tactics that companies use to stay relevant and competitive. Retailers may
successfully traverse the dynamic retail market and improve customer experiences by
integrating experiential design, technology integration, customization, luxury branding, and
social responsibility.

28
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I. Appendices
Codebook from Nvivo

Name Files Referenc


es

Consumer perception of physical retail 0 0

Complete elimination of physical stores is impossible 13 13

Especially for luxury goods 5 5

Geographical presence is necessary for trust 1 1

Longevity of business can reduce the need for e-commerce 0 0

Look and feel of the product is important 0 0

More of an experience than just shopping 1 1

Personalised experience and customisation 3 4

Requires more time & effort 1 1

Visual merchandising 0 0

32
Name Files Referenc
es

Consumer trust in digitalisation 0 0

Clash between what they see & receive 0 0

Delayed deliveries 1 1

Hesitation in luxury online shopping 3 3

Highly accessible 0 0

Lack of technology-adoption 0 0

Money gets locked in 0 0

Sizing & quality issues 3 3

Enriching retail experience through technological innovations 0 0

Checkout with hand gestures 0 0

Emergence of new concepts 2 2

Interactive displays 1 1

Use of AI and technology 1 1

Virtual incorporations in stores 0 0

Exploring profitability 1 1

Higher sales have led to higher profits 9 9

Impact of digitalisation 0 0

Challenges 0 0

Additional costs 0 0

33
Name Files Referenc
es

Damaged products revised 0 0

Higher delivery time 1 1

Higher returns and exchanges 8 8

Management issues of stock, supply and floor 2 2

Opportunities 0 0

Attracts busy customers with less time to shop 2 2

Avenues opened up with online 0 0

Higher reach and visibility 2 2

Sales improved 8 8

Sells unpopular or unavailable products 1 1

Shopping can be quick 2 2

Omnichannel Marketing 0 0

All companies adopting it 2 2

E-Commerce is very important 3 3

Engages wider and cross-border audience 1 1

Increasing promotions & collaborations 7 7

Post covid change in behaviour 1 1

Striking balance between exclusivity 0 0

Can see latest collections 1 1

34
Name Files Referenc
es

Differences in discounting strategies 1 2

Features like home delivery 2 2

Maintaining experience of exclusivity 3 3

Online exclusive products 1 1

Timing and ways of digitalisation 0 0

Application also 3 3

Established after Covid 1 1

Established between 2000-10 5 5

Established between 2010-20 4 5

Marketplace & Multi-brand apps 4 4

Social Media presence 2 2

Website only 6 6

35

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