Lecture 4 Flashcards
Roles of Brick and Motar Stores
- Convenience
- Discovery
- Product experience
- Products Display
- Linked Sales
- Active Selling
Convenience
When the customer wants the product now, the retail distribution is an advantage over an online store
Discovery
Product or service people don’t know they needed until they stumble across it
Product experience
Some products sell better than others.
Linked sales
Customers who bought product A might have bought product B, they can be displayed and promoted together.
Active selling
Salesperson answer questions and point out features, closing sales especially for expensive products.
Modern Retail formats
- Mobile commerce
- Social commerce
- Omnichannel
Mobile Retailing
Due to increase in handheld devices, retailers want to develop this channel’s potential.
Pros:
Customers access retail sites from anywhere
Interactions can be location sensitive
Offers same benefits as computer-based internet channels
Cons:
Small screen
Social Retailing
Involves conducting purchase transactions through a social media site.
Example: pinterest & IG
Omnichannel retailing
Pros: Seeks synergies among formats
Retailers views each channel as creating value (immediacy of store, 24/7 web)
Channels are complementary
Diverse, hence gain bargaining power due to greater overall sales.
Success factors for Omnichannel retailers
- Seamless transaction across channels
- Common customer database
- Common inventory database
- Accurate inventory system to track inventories for in store pickup
- Common look across devices: laptop, phone, tablet
Types of store locations
- Unplanned locations
- Planned locations
- Non traditional location
Unplanned locations
Do not have centralized management Freestanding site For retailers with large space requirements It is not connected to other retailers Pros: Modest occupancy costs Fewer restrictions Cons: Limited trade area
Planned locations
- Shopping malls
- Neighbourhood HDB Town Centre
- Lifestyle centers
- Mixed use development
Non-traditional location
Pop up stores that are temporary locations
Store within a store like departmental stores
specialty shops in hospitals, hotels
Applications of machine learning in retail locations
Geofencing technology
Location Intelligence
Geofencing technology
Enabling software to trigger a response when a mobile device enters or leaves a particular area like an SMS.
Benefits:
Allows retailers to build their realistic trade areas
Help to identify new market
Able to connect with loyal customers
Location Intelligence
LI tools enable users to see trends on maps and graphics to optimize certain business opportunities.
Benefits:
Trade area analysis (customer demographic is growing or shrinking)
Competitor analysis (frequency of competitors visits)
Asset Tracking (provide accurate ETA, real time tracking)
Geofence (push notifications)
Shopping Malls
Shopping centre makes and enforces polices that govern store operations Pros: Large trade area Generate significant pedestrian traffic Accessible by public transport Mall management provides level of consistency Cons: High occupancy costs Has anchor tenants Intense competition
Neighbourhood HDB Town Centre
Pros: Attached row of shops Convenient locations Cons: Limited trade area
Lifestyle centers
Pros:
Design ambience and amenities
Attractive to specialty retailers
Mixed use development
Combine different uses into one complex building e.g. shopping mall and residential.
