Multi-Channel Retailing Case Study

714 Words3 Pages
Chapter 4: Multi-channel retailing
In the previous chapters physical and online shopping were discussed as independent shopping methods. But what are the possibilities with combining these shopping methods to a successful multi-channel retailing formula? In this chapter some of the benefits of a combination are discussed, as well as the possible threats.

4.1 Channel integration
Another name for multi-channel retailing, maybe even more applicable, is omnichannel retailing. Piotrowicz and Cuthbertson (2014) describes the name omnichannel as an evolution of the multi-channel, were the division of physical and online retail has been lifted and customers can switch freely between online and physical retailing in a single transaction. Because of
…show more content…
An important factor for customers is consistency, they expect the same service and experience, independent of the used channel. Furthermore the switching possibilities should be limitless so their preferences at that specific moment can be fulfilled. Retailers are often not able to totally integrate factors like price, marketing, brand image and the supply chain. One of the reasons is that often the different channels are still treated separately and managed by different departments, leading in the extremest situation to competition between physical and online retailing inside the retailer itself. A successful integration drives the customers from the online and mobile solutions to the stores for personal advice, supported by the transparent pricing between the…show more content…
The supply chain should be adjusted depending on the chosen way to integrate the activities (Piotrowicz and Cuthbertson, 2014). Factors like product availability and assortment for both the physical and online store, service and returns and the inventory balance between the channels should be kept in mind. It is crucial that the information flows will be integrated. In case the physical store is seen as one of the main selling channels, the onsite product availability should be higher and the assortment wider. Physical stores can also be seen as an experience store where the focus is on the experience, looks and usability of the products which changes the supply chain setup. In that case it is more important that customers can order the products and get them delivered later on, requiring a lower quantity of products and product variants in of stock at the physical store itself, enabling the retailer to use a separate storage on a cheaper
Open Document