ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349 … · 2017-12-06 · emergence of the Omnichannel retail, which is essentially characterized by the integration of the various

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 8 Issue 4 (2017)

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www.elkjournals.com

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TRANSFORMING THE BRICK-AND-MORTAR FASHION RETAILING-

THE OMNI-CHANNEL WAY

Dr. Sarita Karangutkar

[email protected]

Assistant Professor

VMV Commerce, JMT Arts & JJP Science

College, Nagpur

Prashant Chaudhary

[email protected]

Assistant Professor

Sinhgad Institute of Management &

Computer Application (SIMCA), Pune

ABSTRACT

Introduction: With the increasing internet penetration and proliferation of smartphones, more and more

consumers are choosing to purchase products online year-on-year. Today online shopping continues to

grow with growing behaviour of “Showrooming” wherein a shopper browses through a physical store but

ends up with buying online for various reasons. The increasing customer behaviour of “Showrooming” is

attributed to innovative and engaging shopping experience provided by the mainstream and niche online

fashion retailers. The increasing tendency shoppers of “browsing offline but buying online” naturally leads

to the loss of brick-and-mortar players because of which many times a question is put on the future of brick-

and-mortar retail. Purpose: The study seeks to establish that brick-and-mortar retail specifically the fashion category remains

not only relevant, but indispensable by virtue of its touch-feel-try experience. The origin of this conjecture is

the idea of integrating the various channels and synergizing its overall impact across the touch-points. This

integrative approach between various channels is based on the notion that online and brick-and-mortar

operations are not competing forces but complementary components of contemporary fashion retailing.

Methodology: The study is based on the secondary research wherein various latest corporate and academic

research works is reviewed to obtain the insights. Results: In this study it is observed that brick-and-mortar fashion retailing has started to transform with the

emergence of the Omnichannel retail, which is essentially characterized by the integration of the various

channels to support cross-channel consumer interaction. This eventually leads to enhanced shopping

experience across the touch-points like in-store, online, mobile app, loyalty programme and social media

etc. Originality: This study categorically focuses on understanding the need for brick-and-mortar fashion

retailers to embrace Omnichannel way of business in the context of growing competition from mainstream

and niche online fashion players.

Keywords- augmented reality, E-retailing, Omnichannel retail, showrooming, and Social media, Mobile,

Analytics, and Cloud computing (SMAC)

Introduction-

The fashion retail environment is going

through a multitude of transformations

over the last decade. The transformation

began with the evolution of E-commerce

to social media and mobile applications

Etc. there are now many more variables

that need to be considered beyond merely

bricks-and-mortar setup. The changed

business scenario coupled with increased

customer expectation is driving the

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fashion retailers to adopt the emerging

“Omnichannel” philosophy of retailing,

which enables the customers to interact

and transact with a store via all possible

channels like – in-store, through mobile

applications, social media networking

sites or online - and experience the same

message and level of service across the all

the touch-points.

According to a study conducted by

Nasdaq-listed CA Technologies, India is

one of the best performers when it comes

to the digital transformation business

impact scorecard (BIS). India is standing

high with a score of 79, which is mainly

driven by Social, Mobile, Analytics and

Cloud (SMAC). The impact brought by

digital programmes, policies and

initiatives in India is higher than the Asia

Pacific and Japan (APJ) score of 56 and

global BIS average score of 53 (CA

Technologies, 2016).

When discussed in the context of fashion

retailing, it is very much evident from the

growth projections given by Google-AT

Kearney report. According to the Google-

AT Kearney report India's online fashion

retail market is on its way to emerge as

one of the most-shopped digital category

by 2020. This is expected to be

accounting for about $21 billion (Rs 1.4

lakh crore) of the country's total E-

commerce spending by then. (Google-

A.T.Kearney, 2016).

Now, researcher would like to attract the

attention towards the growth estimates of

branded apparel market. According to a

report by CLSA (2016), with a shift in

consumer tastes towards branded apparel

providing strong investment opportunities

and expect the brands market to double in

size by 2021 to US$30 billion from the

current $15 billion. The branded apparel

segment is gaining considerable traction

in an otherwise fragmented market. This

is reflected in the top 15 brands

registering a 24 per cent CAGR over

2011-15 versus 6.5% CAGR for the

industry; and the organised value-retail

segment as opposed to unorganised retail

or independent stores is gaining

considerable traction.

CLSA further states that, the growth rate

of branded apparel sector is likely to

outpace (overtake) the growth rate of

entire industry (apparel sector) by 1.5

times by 2020-21. CLSA attributes this

attractive growth rate of branded apparel

sector to the factors like, entry of foreign

players and the implementation of GST

regime, which is expected to further shift

the tide in favour of branded apparel

market.

Here E-commerce is essentially playing

the role of a growth catalyst for fashion

brands (by improving distribution) and

also as a challenge for offline department

stores dealing in fashion category. The

entry of foreign brands like GAP, Zara

and H&M is accelerating footfalls in

shopping malls and also providing

lucrative strategic partnership

opportunities for Indian entities. The

presence of a sizeable local textile

industry is also providing a

accommodating ecosystem for branded

apparel.(Shah, 2016)

It is observed that, as the online shopper

in India is evolving swiftly and has

emerged as an astute buyer. This customer



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evolution has provided opportunity for the

niche players such as Koovs, Voonik,

Limeroad and Yepme Etc. to contain the

challenge and hegemony of leading

marketplace players like Flipkart and

Amazon. For instance, Voonik makes

recommendations based on user profiles

that take into account skin tone and other

preferences. This enables the users to buy

what suited their lifestyle and budget.

Sujayath Ali (2016) in an interview stated

that, Voonik aspires to be the "personal

stylist of every woman". With the help of

sophisticated technical platform, Voonik

allows users to choose clothes that would

best suit them. It takes into account

various factors, such as their body type,

lifestyle and budget. The interviewee

further added that, Voonik has created a

visually rich fashion app that is aimed at

providing compelling shopping

experience to the mass buyer. According

to Sujayal Ali, Voonik specifically aims at

striking a balance between customer’s

budget and priorities. The app takes into

account the recommendation of a stylist

and the preference of the customer. The

interviewee also states that, Voonik has

massive following in Tier-II and Tire-III

cities, as almost 65 % of their users are

reportedly from small towns.

Western wear brand Koovs targets young

urban fashion connoisseurs in India by

bringing the selection designed by a team

from Miss Selfridge, a high-street British

women's wear label, and TopShop, to

name a few. TopShop is a British brand

that mainly targets women in the age

group of 15 to 30 years and those seek for

“Catwalk Inspired Designs” at high-street

prices.

TopShop has adopted the Omnichannel

strategy for its international expansion by

seamlessly integrating its brick-and-

mortar stores, online store and mobile. For

instance, in United States the company

uses its flagship store in the major cities

like Los Angeles and New York to

showcase its latest collection and designs.

TopShop brings majority of its revenues

through online portal or through smaller

boutiques within department stores.

TopShop has leveraged the technologies

like integrated apps for mobile devices

and the virtual fitting rooms to ensure a

comprehensive shopping experience for

its customers. Yepme uses Omni Catalyst

to ensure seamless customer experience

by providing same prices, offers and

return policies across channels. The

software provides integrated front-end and

back-end solutions through a single

database for Omnichannel models.

According to the Google-AT Kearney

report, the main differentiators in terms of

design, pricing, target customers,

personalised recommendations and

services have given the niche players an

opportunity to fill the “gap” left by

mainstream online players and offline

fashion retailers. This approach ensures a

small but committed and growing set of

customers for them. (Google-

A.T.Kearney, 2016)

However, in the context of fashion

retailing it was not easy to translate the in-

store experience (touch-feel-try

experience) to the online environment.

This challenge was one of the major

reasons why the fashion industry has been

slower than other sectors to adopt digital

technologies or online retailing.



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Recently, however, new digital

technologies like 3D virtual models,

augmented reality, and artificial

Intelligence etc. have enabled the online

retailers to display the fashion products in

a better way, creating an interactive and

exciting shopping experience. As a result,

fashion and clothing has become the

fastest-growing online category of

products bought in the India. This coupled

with other benefits of online shopping like

convenience of shopping with last mile

delivery, COD (cash on delivery) and easy

return policies have significant

consequences on brick-and-mortar

retailing. Here, what really matters is

reaching the customer wherever they may

be. Hence, the Omnichannel strategies

revolve around the “connected shopper”,

which is referred as the Omnichannel

shopper. Meanwhile, the physical channel

does not entirely set aside the adoption of

the cutting-age-technologies for attracting

and retaining customers, enhancing

customer loyalty and providing improved

shopping experience.

Statement of problems-

The literature review shows that there

exists a “research gap” in understanding

the degree to which integrated offline-

online-social experiences fulfil

consumers’ expectations towards fashion

shopping experiences. In light of this, two

basic research questions are proposed.

First, the “Strategic assets – the touch, feel

and try set up” of the brick-and-mortar

fashion retailers can be leveraged?

Second, why are the brick-and-mortar

fashion retailers need to implement an

Omnichannel strategy? And third, why

and how the brick-and-mortar stores are

evolving to adapt to new circumstances?

Need for study

In order to attain the problem statement,

the undertaken research study adopts a

managerial perspective in order to get

insights on current scenario in fashion

retailing. It essentially delves into the

major challenges that the brick-and-

mortar retailers are facing in the context

of growing online and niche fashion

retailers. The need of the study here is to

find the ways by which a brick-and-

mortar fashion retailer can “fill” the

“Expectation gap regarding shopping

experience” that has been created after the

growth of online fashion retailers and

arrival of niche fashion players in the

terrain of fashion retailing. This research

is aimed at obtaining insights pertaining to

Omnichannel retailing. It also helps to

understand how the Omnichannel fashion-

shopping experience is bringing paradigm

transformation in the business of vogue.

Research Methodology-

In this research that is based on secondary

data, the Researchers take into account the

insights derived from relevant studies

undertaken and survey conducted by

various researchers and institutions in the

subject area. This research is essentially

aimed at studying various factors that are

playing crucial role for creating

Omnichannel shopping experience, with

special reference to fashion retailers.

Researchers have also considered the

views/ opinions expressed and

experiences shared by the leaders and

experts in the retail industry, pertaining



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fashion retailing and Omnichannel

strategy.

Literature Review-

Wojciech Piotrowicz and Richard

Cuthbertson (2014) have defined the

concept of Omnichannel retailing as an

emerging concept where all sales and

interaction channels are merged and it is

designed to deliver a seamless customer

experience regardless of the channel. Here

the researchers opined that, the growing

use of mobile devices and social media

networks has made the traditional online-

offline channel dichotomy obsolete, as the

lines between channels have blurred.

From these transformations a new

business model has emerged which is

referred as the Omnichannel.

Rina Hansen (2015) in the research thesis

titled- Towards a digital strategy for

Omnichannel retailing- has argued that,

the emergence of web technologies,

mobile devices and social media

networking channels has revolutionized

the retail customer experience. The

researchers found that customers are

increasingly using multiple channels to

maximise their shopping experience. The

researcher here illustrates the Hummel’s

case study and examined the transition of

a B2B company to becoming a multi-

channel retailer (B2C E-commerce) by re-

aligning its inherent digital technologies

for developing the Omnichannel retailing

model.

This study concluded that, after the

proliferation of these technologies

consumer expectation has increased,

categorically in the category of fashion

retailing. In this thesis, the researcher has

suggested the fashion brands to

reconfigure their existing business and

information technology (IT) resources.

The researcher recommends aligning

these resources with a new digital strategy

in order to deliver an integrated and

coherent shopping experience across

channels and markets. The researcher

refers this approach as the Omnichannel

way of retailing. Here the researcher has

summarised that, with the advancement of

digital channels, the consumer

expectations has also increased to a new

level. In this kind of scenario, businesses

need to engage with the customers

whenever, wherever and however. So the

motivation for strategically executed

Omnichannel strategy will be become

ever more compelling.

However this study is limited by featuring

a single case that is pertaining to fashion

retailer Hummel’s. Hence it can be argued

that, one cannot generalise from a single

case. The second major limitation of this

study is its focus on e-commerce only and

inclination towards the technicalities of

the Omnichannel transformation process.

However, it is observed that, digital

marketing and social media marketing are

the inevitable components of

Omnichannel retailing at Hummel and in

general as well.

A study undertaken by Deloitte delves

into the new system of retailing

connecting the various channels like

offline stores, Web based stores, mobile

apps and social media networks is referred

to as the Omnichannel retailing. By virtue

of integration all these channels,

Omnichannel retailing offers a flexible



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and seamless shopping experience to

consumers, regardless of whether the

customer walks into a store, browses on a

website or orders via mobile devices. So

by being broadly present across channels

and enabling each channel to serve the

customer at any point through the

purchase journey, retailers can increase

the brand awareness, enhance loyalty and

ultimately drive the value. It is also

observed that, by integrating store and

non-store presence leading retailers have

been able to lure new customers and also

to appeal to distinct markets. In doing so

they not only increase their level of non-

store sales, but they achieve this at very

low cost of their existing sales. (Deloitte,

2014)

Hence Omnichannel retailing is basically

the model of retailing that offers a

seamless shopping experience to

consumers across all possible

mediums/channels. It involves engaging

consumers with the right message at the

right time on the right channel.

Michael Hemsey (2012) in the whitepaper

titled- Omnichannel Loyalty- Designing

the Ultimate Customer Experience- stated

that, the term Omnichannel is an

outgrowth of multi-channel and cross-

channel retailing. Omnichannel system

when implemented with proper

management expertise and technology

solutions can be upgraded to offer an

Omnichannel experience. The researcher

further argued that, marketers want to sell

products to consumers while loyalty

experts strive to engage, retain and grow

these new customers and drive them to

advocacy. However, the only way to

accomplish both effectively is by offering

channel-optimized loyalty programs “right

timed” to deliver engagement at each and

every touch-point that meet the

expectations of each customer.

Mark Glazer (2012) VP of Brand Loyalty

at Kobie Marketing Inc said that,

successful Omnichannel loyalty is about

delivering loyalty from the very beginning

of the customer lifecycle, across all

channels in seamless manner. True

connection begins even before

consideration; I'm talking about that

inkling that makes someone engage in the

first place and say “yes please” or “more

please,” sparking an instant got-to-have-it

moment. That inception signifies success.

In a research titled- Social Media

Engagement Theory- the researchers Paul

M. Di Gangi and Molly Wasko (2016)

have refined the definition of user “social

media engagement”. They explicitly

distinguish engagement as a mental state

separate from the user experience and

actual behaviour. Fundamentally, user

experience (composed of social

interactions and the technical features of a

social media platform) is an assessment of

the actual interactions that occur through a

social media platform, which is an

antecedent of user engagement that is the

resulting psychological state resulting

from the experience. User engagement

differentiates the mental state of being

engaged from the actual act of engaging,

influencing a user’s behavior.

In this study the researchers found that,

the future of business is increasingly

reliant on User Generated Content (UGC)

to create new forms of value and

competitive advantage. In the co-created



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business model, value is derived mutually

between the users who benefit from

socially interacting with other users and

organizations that maintain a captive

audience for advertising and business

intelligence. The researchers concluded

that this competitive advantage is

maintained for an organization as long as

users continue to co-create with the

organization and at a higher level than its

competitors.

Virginia Sharma (2016), director,

marketing solutions at LinkedIn India says

that, today the customer is actively

seeking information and is finding it in

assorted ways. As multiple touch-point

opportunities become available to

customers, new media communication

tools are becoming an integral part of the

customer’s buying-journey. This makes

the brands essential to track and analyse

customer behaviour to deliver content that

customers really want to read. The author

further added that when it comes to

content marketing, there is no one-size-

fits-all formula. A potent mix of both

science (insights and analytics) and art

(messaging, tone and architecture) is

necessary to enable brands with all the

elements needed to create an interesting

narrative.

Vivek Prabhakar (2016), chief Executive

at Lifestyle brand Chumbak which have

started following the cross-channel format

(retailing through offline-online-social

media) opines that, being online has many

advantages for a start-up, such as the

ability to target an exact audience,

measure return on investment, display and

share content to engage current and

potential customers and get instant

feedback. However, being only online can

have certain limitations, as customers

can’t touch and feel of products which

increase the chances of returns, while

logistical issues persist at a customer

level.

Vivek Prabhakar further added that,

selling through these two channels

(Facebook and company website) was

cost-friendly and helped us garner mass

appeal. Based out of Bengaluru and with

limited resources, going online was the

best way for us to reach people across the

country by using AdWords and other

digital marketing methods. They also kept

their Facebook page fun and shared

content that would interest a young

audience, getting them to interact with us

and giving product information.

According to DigitasLBi's Connected

Commerce study of the latest retail trends,

shoppers around the world now expect

Omnichannel, multi-screen experiences

from brands and retailers, with the

average consumer using a total of five

devices when making a purchase. This

study—which was done across 17

countries including India, Australia,

Japan, China, the UK and the USA—also

suggests that consumers found that

shoppers are increasingly using the

devices like, desktop, laptop,

smartphones, tablets and connected TV

for shopping. They are rapidly embracing

wearable technologies as well. The report

further reveals that, social shopping is also

a rapidly growing phenomenon, with 28%

of social network users around the world

claiming to have purchased an item

directly via a social media platform. India

ranks second in terms of social shopping



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with 55% of respondents now buying

through social sites. Other social elements

such as online reviews are also gaining

importance in the purchasing process:

74% of shoppers read them when buying

online and 35% when shopping in-store.

(DigitasLBi, 2015)

According to PwC’s (PwC, 2016) annual

retail survey 2016, titled-They say they

want a revolution-India’s hyper-connected

consumers are rapidly entering an era

where they expect retailers to provide

consistent and unparalleled service across

all touch-points. From choosing between

various channels to being channel

agnostic, the Indian consumer has come a

long way and is now fast moving towards

the Omnichannel way of life. In this

survey which was conducted globally

(across 5 continents and 25 territories),

found that there is significant rise in the

number of online shoppers purchasing

directly via a social media channel.

Sixteen percent of our survey sample said

that they purchase products this way, an

increase of 9% since the 2014 survey. As

far as India is concerned, 32% of

respondents said that purchasing directly

via a social media channel was part of

their shopping behaviour. In India, 66%

said that reading reviews, comments and

feedback influences their online shopping

behaviour. The report states that, global

consumers are pushing the boundaries of

what a good shopping experience means.

The consumers are clearly showcasing

identifiable desires and increasingly

subscribing to specialized retail

communities. They are openly endorsing

the brands they like. Today customers are

browsing and buying more on their

mobile phones and mobile Apps. They are

increasingly using social media for

sharing the looks and soliciting peer

feedback. They are also expecting the

store sales representatives capable of

providing personalised product

recommendations.

According to the Deloitte Report

(Deloitte, 2015) titled-Omni-channel retail

A Deloitte Point of View, modern day

consumers expect to be able to shop

anywhere, at any time, and from any

location. Above all, consumers are

thorough in searching for the right price

and expect multiple, flexible delivery

options. That means they may browse the

merchandise in-store in order to touch-

feel-try the product, buy it online, make

the payment online and ask for the

delivery while leaving the store. On top of

that, savvy consumers are becoming

increasingly choosy and expect a tailored,

personal shopping experience. On account

of this, retailers are expected to meet these

demands, regardless of the channel the

consumer is using. The report further

argues that, this is changing the shopping

scene that people are accustomed to.

Consumers, offline retailers and online

retailers are all playing their role in the

move towards Omnichannel retail. While

mobile shoppers are not excluding the in-

store experience, the bricks-and-mortar

customers are also not avoiding using

their tablet or mobile device to compare

prices, product offerings, and purchasing

terms. Hence if consumers are moving

around and across various channels, so

should retailers. Because of all these

developments a single-channel retailing is

no more relevant.



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Commenting on the findings of annual

report jointly published by RAI (Retailer’s

Association of India) & Octane Marketing

which is titled as-2016 India Retail e-

Marketing Study: A Path to Revolution,

Kumar Rajagopalan (Retailers

Association of India (RAI) and Octane

Marketing, 2016) , CEO of RAI, said that,

retail is one of the few sectors in India

which has been showing promising signs

of digital innovation. Here one of the key

driving factors is the new & evolving

digitally savvy consumers. While Punit

Modhgil (Retailers Association of India

(RAI) and Octane Marketing, 2016),

Director & Co-Founder-Octane Marketing

opined that, retailers will have rethink

shopper loyalty to create reasons for

shoppers to come to their stores. And this

is where digital marketing is helping to

create sustained engagement with like-

minded consumers who either buy online

or find a reason to visit a retail store. In

addition, it helps generate qualified leads

and is equipped with smart analytics that

helps retailers track the ROI of their

digital investments.

According to Gaurav Mahajan (2016),

President (apparel business) at Raymond,

the consumer today moves seamlessly

between the digital and physical world

and technology will further intensify this

trend in a disruptive manner. All brands

and retailers have realised that they need

to find a way not only to respond to this

but also to treat this is an opportunity for

positive disruptive progress. Gaurav

Mahajan further added that, digital and

Omnichannel coupled with exclusive

business outlets (EBOs) have been at the

forefront of Raymond’s strategic agenda,

which eventually led the brand to a CAGR

of 20-25 % for the last five years, for its

apparel portfolio.

Alec J. Dorman (2013) has research found

that brick-and-mortar retail is highly

relevant in the Omnichannel retail

revolution. The positive relationship

between brick-and-mortar investment and

web traffic indicates that physical stores

play crucial role in attracting consumers.

The researcher argued that the retailers

which actively invest in their physical

locations are rewarded with greater web

traffic, which this study establishes as a

prerequisite for generating internet

revenues. A larger amount of purchases

online is also shown to correlate

positively with gross profit margins,

which shows that a strong online and

physical presence strengthens the retail

brand.

Qi Yong-zhi (2014) argues that,

traditional retailers should consider

breadth of channel choice, content

consistency and process consistency. For

breadth of channel choice, customers are

increasingly switching to other channels at

any stage of the buying and enjoy the

expected shopping experience. For

instance, customers can put the order

online and receive the deliver offline. The

purchase can be made online and

merchandise can be returned or exchanged

offline. Or customers may touch-feel-try

the merchandise in the offline store but

buy online. For content consistency,

retailers should maintain consistency of

merchandise information, price,

promotion and stock across the various

channels. For process consistency,

different channels should provide the



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same service quality and quick service to

customers.

Prashant Chaudhary (2016) in his book

titled-Retail Marketing in the Modern Age

has opined that, smart Omnichannel

marketing is about understanding your

consumers’ tastes-preferences and

matching the products and overall

shopping experience to their expectations

and convenience. This enables the

consumers to shop seamlessly, online and

off-line. The author stated that, the stores

are getting digitized and consumers will

just key-in the size and design that they

want, and an app will help them to get

exactly what they are looking for. Here

the author further argues that, brick-and-

mortar retailers need to invest in

technology for making their physical

outlets more vibrant by providing

enhanced shopping experience and brand

engagement. Here, they can leverage the

technology and strategically bridge the

gap between the online and offline

channels.

For instance in January 2016 Dubai based

Landmark Group (home to leading brands

like Lifestyle and Max) launched its

flagship E-Commerce initiative,

LandmarkShops.in, in India, aimed at

making shopping household Landmark

Group brands simpler, easier and more

convenient. Commenting on this

initiative, Kabir Lumba (2016), Managing

Director, Lifestyle International Private

Limited said that, the department based

retailer are extremely delighted to launch

LandmarkShops.in. Kabir Lumba stated

that, both Max and Lifestyle have a strong

loyal customer base by the virtues of the

customer experience, product offering and

brand equity the company have

established over the years. The MD of

Lifestyle International further added that,

with “LandmarkShops.in” the group is

looking forward to increase the market

reach of these brands by making them

accessible to customers across the

country, including the cities where these

brands have not yet established a physical

presence. It also increases the

convenience of shopping, as the

customers can buy the products at the

click of a button.

Gap Analysis-

Gap analysis

Sr.

No.

Author/institution

and title of the

study Year Main areas of study Gap

1

Michael Hemsey

(Omnichannel

Loyalty- Designing

the Ultimate

Customer

Experience)

2012

Here the researcher has

focused on one variable that

is, optimized loyalty

programs and its impact on

the engagement at each and

every touch-point that meet

the expectations of each

The researcher has not

taken other influencing

factors like social media,

mobile app, and Point-of-

sale etc.



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customer.

2

Alec J. Dorman

(Omni-Channel

Retail and the New

Age Consumer: An

Empirical Analysis

of Direct-to-

Consumer Channel

Interaction in the

Retail Industry)

2013

Here the researcher

establishes positive

relationship between brick-

and-mortar investment and

web traffic indicates that

physical stores play crucial

role in attracting consumers.

However the other

variables are not taken

into consideration. This

lefts with the opportunity

to research on how the

other parameters like

social media, mobile app

and point-of-sale etc

when integrated with

each other influence the

consumer engagement

and resultant loyalty

behaviour

3

Deloitte (The

Omni-channel

opportunity-

Unlocking the

power of the

connected

consumers)

2014

This study deals with impact

of integration of various a

channels on the purchase

journey, brand awareness,

loyalty behaviour and the

overall value.

This is more of study on

consumer behaviour and

generalised in its

approach. Also there is

no specific focus on the

fashion category and the

context (that is

burgeoning online and

niche fashion players)

4 Rina Hansen 2015

This study examines and

illustrates the findings four

scientific papers where each

paper reports on the outcomes

of an action research cycle.

Here the researcher has

examined the fashion brand

Hummel's journey towards

omni-channel retailing.

Hence, primarily it illustrates

the technicalities, structure

and process of transition of a

traditional B2B company to a

multi-channel B2C retailer

with omni-channel model of

retailing

This study is limited by

featuring a single case,

which is of Hummel’s.

Hence it can be argued

that, one cannot

generalise the finding of

this research. Though the

study is related to the

business of fashion

retailing, it has not

considered the other

crucial components of

digital marketing. Also

the researcher has not

investigated the

importance of these

factors in the context of

growing online and niche

fashion retailers.



………………………………………………………………………………………………………………………………

5

DigitasLBi's

(Connected

Commerce Survey

2015)

2015

This research studies the

latest retail trends and

shopper's expectations around

the world.

This is more of study on

consumer behaviour and

generalised in its

approach. Also there is

no specific focus on the

fashion category and the

context (that is

burgeoning online and

niche fashion players)

6

Deloitte (Omni-

channel retail A

Deloitte Point of

View)

2015

This survey has taken the

factors like personalization

and its impact, into

consideration. It also explains

how the consumers are using

all the possible channels for

shopping

Again, this report lacks

in the explanation of

impact of integration of

these channels on

customer engagement

and loyalty. Also, this

study is generalised and

leaves further scope for

research for the fashion

as a category

7

PwC (They say

they want a

revolution-Total

Retail 2016)

2016

This survey has been focused

on the role of social media

portals in the customer’s

journey of shopping and

buying. It also discusses

about how the Omnichannel

approach of retailing is

shaping the new consumer

behaviour

Other factors are not

covered in this study, that

influence consumers

buying behaviour in the

context of fashion

products and the

innovative services that

are being provided by the

online and niche fashion

players

8

Paul M. Di Gangi

and Molly Wasko

(Social Media

Engagement

Theory: Exploring

the Influence of

User Engagement

on Social Media

Usage)

2016

This study delves into the role

of User Generated Content

(UGC) through social media

and how it creates the new

forms of value and

competitive advantage.

The researchers has not

incorporated the other

communication channels

and impact of the

integration of all these

channels on consumer

engagement and

competitive advantage

9

Qi Yong-zhi

(Empirical study on

multi-channel

service quality and

customer loyalty of

retailers)

2016

Here the researcher

Omnichannel retailing is

affecting the traditional

retailers brick-and-mortar and

why they should consider

breadth of channel choice,

content consistency and

process consistency

Though this is

comparatively well

comprehensive study and

incorporates almost all

the variables, but it

leaves the scope for

further investigation

about how these factors

in an integrative way can

enhance the shopping



………………………………………………………………………………………………………………………………

experience for the brick-

and-mortar fashion

retailers

Identification and Selection of

Variables:

This literature review identifies a major

gap in the research regarding the impact

of Omnichannel retailing (integration of

various communication channels and

customer touch-points) in the context of

fashion retailing. Also there exist an

opportunity (hence a research gap) to

investigate, the importance of this

approach for traditional brick-and-mortar

fashion retailers, in the context of

increasing online shopping and rising

expectation of customers after the entry

of niche fashion players. While the

mainstream online fashion players are

offering huge discounts and convenience

of shopping; the niche fashion players are

providing augmented shopping

experience by incorporating various

innovative services in the shopping

journey.

In order to examine the impact of

integration of various customer touch-

points on the customer engagement in the

context of fashion retailing, appropriate

variables like In-store touch-points,

online channels like Website, shopping

portal/ marketplace, Point of Sale (POS),

Social Media networks, and mobile Apps

are chosen. All these variables have a

positive impact on the customer

engagement when deployed in an

integrated way.

Theoretical framework-

There is significant impact of

“integration of various communication

channels/ touch-points” [like- In-store

touch points, online channels like

Website, shopping portal/ marketplace,

Point of Sale (POS), Social Media

networks, and mobile Apps] on the

“customer engagement



………………………………………………………………………………………………………………………………

Figure 1- Theoretical framework - The Omni-channel way of marketing in retail

Objective of the study-

The literature review and the resultant gap

analysis shows that, though many

research and survey has happened on how

the Omnichannel way of retailing is

transforming the retail industry; there

exists an opportunity to re-visit this

subject matter in the current scenario of

fashion retailing. Today, it can be

observed that, the online fashion retailers

and niche fashion players have increased

the customer expectations towards a

fashion retailer. Customers today are

more demanding and in this scenario, the

loyalty is at stakes. Hence the challenge

in-front of brick-and-mortar fashion

retailers is not only to meet the increased

customer expectations but also to exceed

this “new normal” by engaging them

through the channels of their choice.

So, the objective of this study is to

understand the impact of integration of

chosen variables on the customer

engagement and resultant shopping

experience. Here the researchers

essentially investigates into the influence

of integration of various touch-points and

communication channels like- In-store

touch-points, online channels like

company Website, shopping portal/

marketplace presence, Point of Sale

experience(POS), Social Media networks,

and mobile Apps- on the customer

engagement and the resultant customer

loyalty.

Hypothesis-

This is a secondary research essentially

based on the literature of review, so

hypothesis has not been formulated.

Findings –

It is observed that, traditional retail has

been helped by the growth of digital

marketplaces as they have heightened

Engaging shopping

experience through

Integration of-

In-store touch points,

online channels like

company Website,

shopping portal/

marketplace presence,

Point of Sale (POS)

experience, Social

Media networks, and

mobile Apps

Acquire

the

customers

Growing

Customer Engagement

Integrated

Loyalty

Programmes

Retaining



………………………………………………………………………………………………………………………………

brand awareness. While on the other side,

the online fashion retailers, both

mainstream and niche players, has also

raised expectations when it comes to the

shopping experience by exposing

customers to the latest technology and

services. So to benefit from the growing

customer demand for fashion, traditional

brick-and-mortar retailers have therefore

have to change the way they run their

business.

Today retailers are serving to the

“connected customers” whose mobile

device has become their new personal

shopping assistant, even when they are

inside the store. On the other side,

researcher observed that a significant

number of these customers still prefer to

touch, feel and try products before

buying. This clearly implies that an

online-only model or offline-only model

is not enough to generate the desired

customer engagement and shopping

experience.

So, in the age of this digital era “bricks”

need to get integrated with “clicks”. The

barriers between the online and offline are

beginning to disappear. The factors that

are catalysing this paradigm shift are

digital technologies like web, mobile,

Analytics, and Cloud computing and

Artificial Intelligence Etc. Hence the

Omnichannel model of retailing is the

future-present of retail.

Managerial implications-

In the burgeoning competitive fashion

retailing scenario, the brick-and-mortar

fashion retailers need to find innovative

ways to connect with their audience and

offer them a relevant proposition.

Technology enabled infrastructure helps

in integration of channels and gives new

relevance to brick-and-mortar stores.

However the most important thing is that

technology is not be an end, but a medium

to enhance high-quality customer

experience.

The importance of the hedonic elements

in the fashion shopping experience has to

be established, in congruence with

different technologies that lead to creation

of an enjoyable fashion shopping

experience. So the online channel should

promote use of interactive and new

technologies. Mobile connectivity via

smartphones, tablets and wearable devices

enables consumers to browse and shop

anytime, anywhere, and mobile commerce

is expanding rapidly. It is believed that, as

consumers become more experienced in

shopping online, specifically from the

portals of niche fashion retailers; they will

expect a similar experience in stores. As a

result, the store experience must be

redefined and its role should evolve, as it

is becoming one part of a larger and more

connected customer experience.

As the shoppers are now used to a much

wider range of purchasing options, it is

more crucial than ever for the fashion

retailers to guide purchase decisions by

virtue of integration of various channels.

Here they need to offer value beyond the

label price of the merchandise they are

selling. If a customer perceives an excess

of value in a transaction, they will be

more likely to share their shopping

experiences with the fashion brand,

among other like-minded prospects. This

is very necessary to convert customers



………………………………………………………………………………………………………………………………

into brand advocates and thereby

achieving patronage loyalty.

Conclusion-

Hence the study suggests the retailers to

review their Omnichannel strategies to

stay relevant. Technological

advancements are becoming key

components to win new customers so

retailers should review their Omnichannel

strategy to stay ahead. As the

Omnichannel shopping becomes

pervasive, embracing these new business

formats and adapting to the technology-

enabled changes in consumer behaviour

can enhance the competitive edge of

brick-and-mortar fashion retailers. These

competitive advantages have the right

potential to enable them to face the

competition from mainstream and niche

online fashion retailers in a sustainable

way.

It can be concluded that, in order to

achieve this competitive advantage the

brick-and-mortar fashion retailers need to

embrace a two pronged strategy. While on

one side they need to leverage their

physical setup to offer an attractive

shopping experience; on the other they

need to embrace the Omnichannel model

of retailing. This is essentially to offer an

integrated shopping experience across

various channels, preferred by the

customer. The Omnichannel model of

retailing enhances the customer

engagement and eventually leads to

increased customer loyalty.

Contribution-

This study contributes to the existing

body of knowledge by virtue of the

insights it brings to the table. These

insights are based on pragmatic aspects of

contemporary brick-and-mortar store

based fashion retailing. On accounts of

findings, the researchers suggest the

brick-and-mortar fashion retailers is

leverage the physical nature of the store in

order to provide touch-feel-try experience

and simultaneously maximise the value by

integrating various touch-points and

communication channels.

By this approach the retailers can enhance

the “Overall shopping experience” by

providing personalized products and

services. This approach of marketing will

equip them to nullify the challenges posed

by online fashion retailers and niche

fashion players. Findings of this study

delve into optimal role of brick-and-

mortar stores on various fronts and

dimensions of fashion retailing.

Limitations-

This study is essentially based on the

review of existing literature that is

available on the subject under

consideration. The literature incorporated

research articles/ books chapters/

newspaper articles and interviews with the

industry leaders/ experts. Because of time

and other constraints the primary research

in this area is not done by the researchers.

There is one more major limitation which

is nothing but the sufficient market

evolution and awareness about the

innovative products that are being

provided by niche fashion players.



………………………………………………………………………………………………………………………………

Scope for future research-

This study takes the context of

burgeoning online fashion retailing and

entry of niche fashion retailers in order to

prove the importance of integrated

shopping experience. The theoretical

construct introduced in this research

article provides a natural guide to future

research. It is typically, a new domain for

researchers wherein they can undertake an

empirical research in order to support or

challenge the findings of this study. After

this, the further research in the domain

will gradually move to deeper levels.

Much research also remains to be done on

topics like impact of niche fashion players

on the expectations of shoppers from

brick-and-mortar fashion retailers.

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