6DIGITAL TRANSFORMATION OF BRICK AND MORTAR STORES

Question 1

What marks the introduction of the new fashion retail environment?

Answer 1

The end of the brick and mortar store.

Question 2

What is the difference between multichannel and omnichannel strategies?

Answer 2

Multichannel combines online and offline channels separately, while omnichannel integrates these channels for a seamless experience.

Question 3

What is the new role of digitally transformed physical stores?

Question 4

What is a brick-and-mortar store?

Answer 4

A traditional business with a physical store where customers can browse and make purchases in person.

Question 5

How have traditional retailers adapted to digital transformation?

Answer 5

By creating connected digital-based businesses to compete with online-only firms, and some digital-only companies have opened physical stores.

Question 6

List some advantages of brick-and-mortar stores.

Answer 6

Touch & feel, direct communication, experience shopping, try on, instant gratification, ease of return, fast availability, compare offerings, true color, perception of trust.

Question 7

List some disadvantages of brick-and-mortar stores.

Answer 7

Higher costs for rent and maintenance, higher staffing costs, utility expenses, limited geographic reach, less flexibility compared to online retailers.

Question 8

What are some advantages of internet shopping channels?

Answer 8

Deeper and broader assortment, more tools for evaluating merchandise, personalization and customization, problem-solving information, safety, and privacy.

Question 9

What is the digital influence factor?

Answer 9

The percentage of sales in brick-and-mortar stores influenced by the use of digital devices.

Question 10

What is the mobile influence factor?

Answer 10

The percentage of sales in brick-and-mortar stores influenced by the use of mobile devices.

Question 11

Which age group is most digitally influenced in their shopping experiences in physical stores?

Answer 11

Customers from 18 to 24 years old.

Question 12

How are brick-and-mortar stores evolving with digital transformation?

Answer 12

By integrating digital elements to create a simplified and captivating customer experience.

Question 13

What is technological convergence?

Answer 13

The merging of previously unrelated technologies into a single device or store environment.

Question 14

What does “phygital” engagement in stores refer to?

Answer 14

Combining physical and digital elements to enhance the shopping experience.

Question 15

What is beacon-based marketing?

Answer 15

Using Bluetooth-powered sensors to pinpoint the real-time location of visitors or objects indoors.

Question 16

How are physical stores enhancing convenience for customers?

Answer 16

Through self-checkout and cashierless store options.

Question 17

List some digital applications used in physical stores.

Answer 17

Smart displays, interactive kiosks, smart signage, AR/VR product trials, store management software, heat maps, planograms, biometrics.

Question 18

What do multichannel strategies revolve around?

Answer 18

The product, providing separate purchase opportunities for consumers on different channels.

Question 19

What are key characteristics of multichannel strategies?

Answer 19

Independent channels, choice for consumers, and optimization of marketing in preferred channels.

Question 20

What do omnichannel strategies revolve around?

Answer 20

The customer, providing a fully-integrated shopping experience across all channels.

Question 21

What are key characteristics of omnichannel strategies?

Answer 21

Customer-centric, integrated experience, cross-channel spillover, merging of sales and marketing channels.

Question 22

List the dimensions of omnichannel integration.

Answer 22

Integrated promotion, product and price, transaction information, information access, order fulfillment, customer service, shopping experience.

Question 23

Give an example of an omnichannel retail strategy.

Answer 23

Browsing a product in-store, scanning it with an app, and adding it to the online shopping bag to purchase later.

Question 24

What are some challenges of omnichannel fashion retailing?

Answer 24

Growing complexity in operating models, cross-selling, consistent pricing, channel-exclusive promotions, seamless customer experience.

Question 25

How are thriving retailers with physical stores adapting?

Answer 25

By focusing on convenience, strategic growth, brand loyalty, customer experience, and customer service.

Question 27

Why is the tangible aspect of in-store shopping important?

Answer 27

It offers something that can’t be replicated online.

Question 28

What unique approach did Burberry take with its store in Shenzhen?

Answer 28

Prioritizing immersive retail experiences and integrating social media engagement through WeChat.

Question 29

What does the future of omnichannel shopping look like?

Answer 29

A phygital shopping experience, personalized stores, focus on sustainability, community, and fun.

Question 30

How can digital and analytics transform the apparel value chain?

Answer 30

By enhancing customer experience, optimizing supply chain and distribution, and digitizing product development and support functions.