Journal of the Korean Society of Clothing and Textiles (한국의류학회지)

The Korean Society of Clothing and Textiles (한국의류학회)
권호 표지
DOI QR코드

DOI QR Code

Understanding Offline Channel Expansion for Online Fashion Retailers and Channel Integration

온라인 패션 유통업체의 오프라인 채널 확장에 대한 소비자 평가와 채널 통합 수준

  • Park, Shin Young (Dept. of Textiles, Merchandising and Fashion Design, Seoul National University) ;
  • Lee, Yuri (Dept. of Textiles, Merchandising and Fashion Design, Seoul National University/Research Institute of Human Ecology, Seoul Naional University) ;
  • Choi, Yun Jung (Dept. of Fashion and Clothing, Mokpo National University)
  • 박신영 (서울대학교 의류학과) ;
  • 이유리 (서울대학교 의류학과/서울대학교 생활과학연구소) ;
  • 최윤정 (목포대학교 패션의류학과)
  • Received : 2018.04.30
  • Accepted : 2018.09.17
  • Published : 2018.12.31
Download PDF
⟨ Previous Next ⟩

Abstract

Online retailers' offline channel expansion is rapidly growing as an important consumer incentive strategy, despite the enormous initial costs of establishing a store. This study focuses on the offline channel operation of online shopping malls, and examines the effects and influencing factors of the channel expansion strategy from a consumer perspective. In-depth interviews were conducted with ten customers in their 20s and 30s who had visited online retailers' stores or purchased products. Major issues were extracted based on the framework of a channel effect mechanism proposed by Cao and Li (2015). Subsequently, it was found that existing online retailers could enhance brand image and perception by expanding their channels to offline stores. It was also emphasized that the consumer trust on the quality of the product in offline stores is a key variable, and it has a significant influence on consumer's continuous purchase and revisit intention. This study showed that borderless channel integration was the most important task when expanding channels of online retailers. So it will be necessary to strive for an omni-channel strategy so that channel integration can be strategically executed and consumers can interact regardless of channels.

Keywords

References

  1. Aaker, D. A. (1996). Measuring brand equity across products and markets. California Management Review, 38(3), 102-120. doi:10.2307/41165845
  2. Ansari, A., Mela, C. F., & Neslin, S. A. (2008). Customer channel migration. Journal of Marketing Research, 45(1), 60-76. doi:10.1509/jmkr.45.1.60
  3. Beck, N., & Rygl, D. (2015). Categorization of multiple channel retailing in Multi-, Cross-, and Omni-Channel Retailing for retailers and retailing. Journal of Retailing and Consumer Services, 27, 170-178. doi:10.1016/j.jretconser.2015.08.001
  4. Bell, D. R., Gallino, S., & Moreno, A. (2018). Offline showrooms in omnichannel retail: Demand and operational benefits. Management Science, 64(4), 1629-1651. doi:10.1287/mnsc.2016.2684
  5. Bhattacherjee, A. (2002). Individual trust in online firms: Scale development and initial test. Journal of Management Information Systems, 19(1), 211-241. doi:10.1080/07421222.2002.11045715
  6. Cao, L., & Li, L. (2015). The impact of cross-channel integration on retailers' sales growth. Journal of Retailing, 91(2), 198-216. doi:10.1016/j.jretai.2014.12.005
  7. Chatterjee, P. (2010). Multiple-channel and cross-channel shopping behavior: Role of consumer shopping orientations. Marketing Intelligence & Planning, 28(1), 9-24. doi:10.1108/02634501011014589
  8. Choi, E. S. N. (2017, May 15). 'Imvely' 'Chuu' 'Sappun', Powerful power in distribution Fashion Insight. Retrieved February 10, 2018, from http://www.fi.co.kr/main/view.asp?SectionStr=Market&SectionSub=&idx=58993
  9. Choi, I. H., & Lee, Y. I. (2004). Case study on the 'clicks and mortar' strategies of the three major department stores in Korea. Distribution Business Review, 9(1), 1-24.
  10. Choi, J. Y. (2004). Consumer multichannel choice behavior in the information search and purchashing stages. Journal of Consumer Studies, 15(4), 103-120.
  11. DMC REPORT. (2016, Februaty 16). Shopping channel usage status. DMC REPORT. Retrieved February 10, 2018, from http://www.dmcreport.co.kr/content/ReportView.php?type=Statistics&id=9225&gid=11
  12. Farquhar, P. H. (1989). Managing brand equity. Marketing Research, 1(3), 24-33.
  13. Fashion Journal & Textile Life. (2017, December 21). Four keywords analysis of fashion market in 2017 incorporating strategies for next year. Fashion Journal. Retrieved February 10, 2018, from http://okfashion.co.kr/detail.php?number=48616&thread=81r18
  14. Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., & Bryant, B. E. (1996). The American customer satisfaction index: Nature, purpose, and findings. Journal of Marketing, 60(4), 7-18. doi:10.2307/1251898
  15. Frewer, L. J., Howard, C., Hedderley, D., & Shepherd, R. (1996). What determines trust in information about foodrelated risks?: Underlying psychological constructs. Risk Analysis, 16(4), 473-486. doi:10.1111/j.1539-6924.1996.tb0094.x
  16. Geyskens, I., Gielens, K., & Dekimpe, M. G. (2002). The market valuation of Internet channel additions. Journal of Marketing, 66(2), 102-119. doi:10.1509/jmkg.66.2.102.18478
  17. Heider, F. (1946). Attitudes and cognitive organization. The Journal of Psychology, 21(1), 107-112. doi:10.1080/00223980.1946.9917275
  18. Helson, H. (1964). Adaptation-level theory: An experimental and systematic approach to behavior. New York, NY: Harper and Row.
  19. Hess, J. S. (1995). Construction and assessment of a scale to measure consumer trust. Proceedings of the American Marketing Association, Summer Educators' Conference, USA, 6, 20-26.
  20. Jacoby, J., & Mazursky, D. (1984). Linking brand and retailer images: Do the potential risks outweigh the potential benefits? Journal of Retailing, 60(2), 105-122.
  21. Jang, T. Y. (2017, March 23) Internet shopping malls targeting 'reverse showromming' has increaed. Joongboo Ilbo. Retrieved February 11, 2018, from http://www.joongboo.com/?mod=news&act=articleView&idxno=1152891
  22. Jun, S. (2013). The determinants of switching on.off-line channels for consumers. The Journal of Digital Policy & Management, 11(12), 245-256. doi:10.14400/JDPM.2013.11.12.245
  23. Kang, M. S. (2017, July 17). O2O to O4O..Expansion of both online and offline servies. Enewstoday. Retrieved February 17, 2018, from http://www.enewstoday.co.kr/news/articleView.html?idxno=1087489
  24. Kim, C. W., & Lim, S. T. (2003). Effects of an exhibition's physical environment on visitor's satisfaction, revisit intention and word of mouth: The case of 2003 World Flower Exhibition of Koyang city. Journal of Tourism Sciences, 27(3), 79-95.
  25. Kim, E. Y., & Kim, S. H. (2008). The effect of benefits on usage of information sources and purchase intentions for online clothing purchases. 생활과학연구논총, 12(1), 239-250.
  26. Kim, J. H. (2017, March 19). Lotte department said, 'Imvely', 'Sappun' opened 13 online shopping malls in the first half of the year. Asiatoday. Retrieved March 10, 2018, from http://www.asiatoday.co.kr/view.php?key=20170319010011774
  27. Kim, S. E., & Kim, M. Y. (2017). A study on omni-channel strategy in fashion industry. Journal of the Korean Society of Costume, 67(1), 40-55. doi:10.7233/jksc.2017.67.1.040
  28. Kim, S. H. (2007). A study on the fast fashion (Part II) - Focusing on clothing selection criteria and store selection criteria -. The Research Journal of the Costume Culture, 15 (5), 888-901. doi:10.29049/rjcc.2007.15.5.888
  29. Kim, S. H., Park, G. Y., & Park, H. J. (2007). Factors influencing buyers' choice of online vs. offline channel at information search and purchase stages. Distribution Business Review, 12(3), 69-90.
  30. Kumar, V., & Venkatesan, R. (2005). Who are the multichannel shoppers and how do they perform?: Correlates of multichannel shopping behavior. Journal of Interactive Marketing, 19(2), 44-62. doi:10.1002/dir.20034
  31. Kwon, W. S., & Lennon, S. J. (2009). Reciprocal effects between multichannel retailers' offline and online brand images. Journal of Retailing, 85(3), 376-390. doi:10.1016/j.jretai.2009.05.011
  32. Mcgoldrick, P. J., & Collins, N. (2007). Multichannel retailing: profiling the multichannel shopper. The International Review of Retail, Distribution and Consumer Research, 17 (2), 139-158. doi:10.1080/09593960701189937
  33. Neslin, S. A., Grewal, D., Leghorn, R., Shankar, V., Teerling, M. L., Thomas, J. S., & Verhoef, P. C. (2006). Challenges and opportunities in multichannel customer management. Journal of Service Research, 9(2), 95-112. doi:10.1177/1094670506293559
  34. Netemeyer, R. G., Heilman, C. M., & Maxham III, J. G. (2012). The impact of a new retail brand in-store boutique and its perceived fit with the parent retail brand on store performance and customer spending. Journal of Retailing, 88(4), 462-475. doi:10.1016/j.jretai.2012.06.002
  35. Oh, J. A. (2016). An analysis on the omni-channel strategy of distribution enterprise in domestic and international. Journal of the Korean Institute of Interior Design, 25(5), 111-120. doi:10.14774/JKIID.2016.25.5.111
  36. Oh, S. I. (2017, June 5). Expanding the offline territory of an online shopping center] Shot the taste and get strong power in distribution beyond online. Jmagazine. Retrieved March 10, 2018, from http://jmagazine.joins.com/economist/view/316824
  37. Osgood, C. E., & Tannenbaum, P. H. (1955). The principle of congruity in the prediction of attitude change. Psychological Review, 62(1), 42-55. doi:10.1037/h0048153
  38. Park, M. J. (2017, February 10). Firty-three percent of consumers are 'omni shopper' such as showromming, reverse showrooming. Gvalleynews. Retrieved December 20, 2017, from http://www.gvalley.co.kr/news/articleView.html?idxno=531750
  39. Park, S. H. (2008). A study on the relation effects and response act in the distribution channels of national & foreign clothing brand - The relationship between the department store and the tenant in the departmentstore. Korea Research Academy of Distribution Information Review, 11(4), 79-106. doi:10.17961/jdmr.11.4.200812.79
  40. Park, S. Y., & Park, J. C. (2011). The effects of physical environment of clothing stores in the market performance. Korean Business Review, 4(1), 73-93.
  41. Park, W. I. (2017, March 21). 'I buy at an offline store'...Rising of 'reverse showrooming'. ChosunBiz. Retrieved March 10, 2018, from http://biz.chosun.com/site/data/html_dir/2017/03/21/2017032101101.html
  42. Payne, A., & Frow, P. (2004). The role of multichannel integration in customer relationship management. Industrial Marketing Management, 33(6), 527-538. doi:10.1016/j.indmarman.2004.02.002
  43. Schramm-Klein, H., Morschett, D., & Swoboda, B. (2008). Verticalization: The impact of channel strategy on product brand loyalty and the role of involvement in the fashion industry. Advances in Consumer Research, 35, 289-297.
  44. Spiggle, S. (1994). Analysis and interpretation of qualitative data in consumer research. Journal of Consumer Research, 21(3), 491-503. doi:10.1086/209413
  45. Stone, M., Hobbs, M., & Khaleeli, M. (2002). Multichannel customer management: The benefits and challenges. Journal of Database Marketing & Customer Strategy Management, 10(1), 39-52. doi:10.1057/palgrave.jdm.3240093
  46. Sung, T. E., Choi, S., & Jun, S. P. (2017). Development of brand equity valuation model and evaluation index. Proceedings of the Korea Technology Innovation Society, Fall Conference, Korea, 793-804.
  47. Verhoef, P. C., Kannan, P. K., & Inman, J. J. (2015). From multi-channel retailing to omni-channel retailing: Introduction to the special issue on multi-channel retailing. Journal of Retailing, 91(2), 174-181. doi:10.1016/j.jretai.2015.02.005
  48. Westenberg, E., Popat, B., & Stine, J. (2012). The operational implications of omnichannel retailing. Cisco. Retrieved March 10, 2018, from https://www.cisco.com/web/about/ac79/docs/retail/Omnichannel-Retail-POV.pdf