1.0 Introduction and Background 1.1 Overview of Online Retail Industry in the 21st Century The wake of the internet has revolutionized the retail industry a great deal in the 21st Century. The selling of retail products has moved from retail shopping experience to home-delivery services. The internet has therefore shifted the shoppers experience to a whole new level of home purchase by the click of a button. This online retail concept has its pros and cons as well. The ultimate advantage is that the retail stores are receiving a global presence thus cutting off the national or international boundaries thus having a global print at the click of a button (Krafft & Mantrala, 2006). On the other hand the most compelling limitation is in the logistics of products delivery. This means that though the retail stores may have a global outreach the delivery of single unit products may be a challenge due to the shipment costs as well as country-specific bound shipment regulations and policies. According to (Thompson, 2013), the United Kingdom retail stores on Ecommerce were projected to pass the 1 Million Euros Mark, meaning that the internet users have increased up to 3.5 billion from just 2.2 billion, thus representing a 20% overall growth. This exponential growth is expected to increase over the next three years. According to Boston Consulting Group (BCG) due to the paradigm shifts in the retail industry to the internet, provides for a £2.7 Trillion opportunity, as they suggested that the internet users will increase by 3 billion by the year 2016, and already the UK is seen as a global frontier for its total Gross Domestic Product (GDP) has its 8.3% stake from online trading. 1.2 Background of Mark and Spencer The company started in t... ... middle of paper ... .../article/newSTR_66.htm) Pratley, N. (2013). Marks & Spencer's deadline to find wow factor looms. The Guardian. (http://www.theguardian.com/business/2013/may/14/marks-and-spencer-spring-collections) Recklies, D. (2001). The Value Chain. Food and Agricultural Organization of the United Nations (FAO). (http://www.fao.org/fileadmin/user_upload/fisheries/docs/ValueChain.pdf) Richards, L. (2012). How to Apply the Five Force Model in the Retail Business. Demand Media. (http://smallbusiness.chron.com/apply-five-force-model-retail-business-3297.html) Suttle, R. (2012). SWOT Analysis for Retail. Demand Media. (http://smallbusiness.chron.com/swot-analysis-retail-3344.html) Thompson, J. (2013). Marks and Spencer: Under pressure to deliver. Independent UK. (http://www.independent.co.uk/news/business/analysis-and-features/marks-and-spencer-under-pressure-to-deliver-8611987.html)
The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon which are gaining considerable market shares in many of the product segments included in the specialty retail sector.
Macy’s believes that going into this business will strengthen their associates’ selling skills, recruiting new talents, increased direct supervision, and offering higher quality products. It was such a success that Macy’s rolled out this concept to 300 other locations in fall of 2016, and planned on incorporating it to the rest of their stores by the end of 2017. In an attempt to reach out to new markets, Macy’s entered in a joint venture with a Hong Kong retailing company. Macy’s own 65%, while Fung Retailing Limited will own 35% in this online venture in China. This purpose of this venture is for Macy’s to penetrate a foreign market with the help of a host’s country company to avoid running into any problems while conducting business. It
This is an opportunity to reach a large demographic and expand into emerging technological markets. As more consumers move to e-commerce and their main shopping venue, the need to manage high cost, larger retail stores dimensions. The money saved in operating costs can be allocated elsewhere.
A large number of physical retailers are turning to eCommerce in order to compete with large online retailers that offer more flexibility. Online stores have integrated competitive shipping options in order to survive in the highly competitive online shopping market. Such shipping solutions include Amazon’s Prime Local Express Delivery, Wal-Mart’s Same Day Delivery, eBay Now, and U.S. Postal Service’s Metro Post. Today’s companies that have embraced same-day delivery hope to succeed in a field where others such as Kozmo and Urbanfetch failed. The failure of the two can be attributed to lack of funding but as Chowdhry (n.p.) puts it, they were operating ahead of their time considering the poor Internet infrastructure in place then.
While the overall retail market is expected to grow at 12 percent per annum, modern trade would expand twice as fast as 20 percent per annum and traditional trade at 10 percent. India’s business 2 business (B2B) e-commerce market is expected to reach US$700 billion by 2020 whereas the business to commerce (B2C) e-commerce market is expected to reach US$ 102 billion by 2020 online retail is expected to be with the physical stores in the next five
2: Online growth as the online society is increasing day by day by doing online shopping.
Since its launch in the mid '90s, Dell's e-commerce business has been a poster child for the benefits of online sales, says Aberdeen Group analyst Kent Allen. The company's strategy of selling over the Internet -- with no retail outlets and no middleman -- has been as discussed, admired and imitated as any e-commerce model. Dell's online sales channel has proven so successful, says Allen that the computer industry must ask: "Does the consumer need to go to the store to buy a PC anymore?"
Growth of internet retailing has been credited to retailers’ efforts to develop businesses by improving their products expanding their reach to serve other areas aside from Metro Manila and carry out promotions like markdowns and discounts.
However, in the long run it’ll be a different story as E commerce in India has just reached less than 1/10th of its potential. Out of 120 Crore Indian population not more than 1.5 crores use E Commerce frequently. Looking at burgeoning internet users the market should reach at least 15 ...
The Global retail can be defined as to increase the business by expanding the branches of the company or the expansion of the business into the new markets or globally, that means opening a new branch of the business in to the new country. However, being global for the company is considering very important now a days as it was not much focused before. There are three major players in this global retail industry are as follows Walmart, Tesco and Carrefour. Hence, these global retailers having a very big market all over world such as Walmart do have more than 11,000 stores in 27 different countries (Walmart, 2015). However, Tesco is also counted one of the largest retailer store which serves millions of customers online or in their store within
However department stores are losing share in the clothing market as Debenhams and House of Fraser have seen disappointing sales for clothing and are seeking to adapt to the changing dynamics of the marketplace. Other formats can be value retailers which involves low prices on a daily basis e.g. Primark, lifestyle stores that sell a wide variety of product categories under a single brand, for example Urban Outfitters and &Other Stories, factory outlet; a good example is Bicester Village. Supermarkets are tightening their grip on the clothing market as they look to turn themselves into fashion destinations. Sainsbury’s has been expanding its clothing offer to include more trend-led and exclusive items, as well as growing its focus in quality and design with a premium Tu collection and an occasion wear range.
Internationally the share of online sales in retail is growing, driven by the increased sales in existing online retailers as well as by the market entry and expansion by traditional bricks-and-mortar retailers into eCommerce (Hübner, Holzapfel & Kuhn 2016:256). Conversely, online retailers are accelerating their expansion into bricks-and-mortar retailing. One such example is the merger between Amazon and Whole Foods Markets, a $13.7bn agreement under which Amazon will acquire Whole Foods Markets in an all cash transaction. This deal accelerates Amazon’s establishment of a bricks-and-mortar footprint, allowing it to reduce delivery lead times and last mile delivery costs (Retailanalysis 2017).
The Retail industry includes establishments selling merchandise and offering services related to the sale of goods. Retailers sell goods to the end consumer. The retail sector consists of two main types: store and nonstore retailer.
Li & Fung is a global trading group sourcing and managing the supply chain for high volume, time sensitive consumer goods. The group is associated with strong brands such as The Limited, Gymboree, American Eagle, Warner Brothers, Bed, Bath & Beyond, Levi-Strauss. With the rise of the internet, and the thrive of the B2B intermediaries, this memo will discuss the Li & Fung's E-Commerce strategy and how to use internet to facilitate supply chain management.
Retailer is a service provider who supplies the goods of small orders from several end-users rather than huge orders of a few wholesale or corporate clients. The variety of strategic level decisions likely store type, market to be served, service to the customer and whole store marketing position are made by modern retailers. In this digital era, rising number of retailers are trying to sell through multiple channels to pursue broader