6DIGITAL TRANSFORMATION OF BRICK AND MORTAR STORES Flashcards
What marks the introduction of the new fashion retail environment?
The end of the brick and mortar store.
What is the difference between multichannel and omnichannel strategies?
Multichannel combines online and offline channels separately, while omnichannel integrates these channels for a seamless experience.
What is the new role of digitally transformed physical stores?
What is a brick-and-mortar store?
A traditional business with a physical store where customers can browse and make purchases in person.
How have traditional retailers adapted to digital transformation?
By creating connected digital-based businesses to compete with online-only firms, and some digital-only companies have opened physical stores.
List some advantages of brick-and-mortar stores.
Touch & feel, direct communication, experience shopping, try on, instant gratification, ease of return, fast availability, compare offerings, true color, perception of trust.
List some disadvantages of brick-and-mortar stores.
Higher costs for rent and maintenance, higher staffing costs, utility expenses, limited geographic reach, less flexibility compared to online retailers.
What are some advantages of internet shopping channels?
Deeper and broader assortment, more tools for evaluating merchandise, personalization and customization, problem-solving information, safety, and privacy.
What is the digital influence factor?
The percentage of sales in brick-and-mortar stores influenced by the use of digital devices.
What is the mobile influence factor?
The percentage of sales in brick-and-mortar stores influenced by the use of mobile devices.
Which age group is most digitally influenced in their shopping experiences in physical stores?
Customers from 18 to 24 years old.
How are brick-and-mortar stores evolving with digital transformation?
By integrating digital elements to create a simplified and captivating customer experience.
What is technological convergence?
The merging of previously unrelated technologies into a single device or store environment.
What does “phygital” engagement in stores refer to?
Combining physical and digital elements to enhance the shopping experience.
What is beacon-based marketing?
Using Bluetooth-powered sensors to pinpoint the real-time location of visitors or objects indoors.
How are physical stores enhancing convenience for customers?
Through self-checkout and cashierless store options.
List some digital applications used in physical stores.
Smart displays, interactive kiosks, smart signage, AR/VR product trials, store management software, heat maps, planograms, biometrics.
What do multichannel strategies revolve around?
The product, providing separate purchase opportunities for consumers on different channels.
What are key characteristics of multichannel strategies?
Independent channels, choice for consumers, and optimization of marketing in preferred channels.
What do omnichannel strategies revolve around?
The customer, providing a fully-integrated shopping experience across all channels.
What are key characteristics of omnichannel strategies?
Customer-centric, integrated experience, cross-channel spillover, merging of sales and marketing channels.
List the dimensions of omnichannel integration.
Integrated promotion, product and price, transaction information, information access, order fulfillment, customer service, shopping experience.
Give an example of an omnichannel retail strategy.
Browsing a product in-store, scanning it with an app, and adding it to the online shopping bag to purchase later.
What are some challenges of omnichannel fashion retailing?
Growing complexity in operating models, cross-selling, consistent pricing, channel-exclusive promotions, seamless customer experience.
How are thriving retailers with physical stores adapting?
By focusing on convenience, strategic growth, brand loyalty, customer experience, and customer service.
Why is the tangible aspect of in-store shopping important?
It offers something that can’t be replicated online.
What unique approach did Burberry take with its store in Shenzhen?
Prioritizing immersive retail experiences and integrating social media engagement through WeChat.
What does the future of omnichannel shopping look like?
A phygital shopping experience, personalized stores, focus on sustainability, community, and fun.
How can digital and analytics transform the apparel value chain?
By enhancing customer experience, optimizing supply chain and distribution, and digitizing product development and support functions.
