• Title/Summary/Keyword: Retail Innovation

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Conceptual Framework of Reverse Retail Internationalization: From the Perspective of Retail Innovation and Retail Format

  • Cho, Myung-Rae;Mukoyama, Masao
    • Journal of Distribution Science
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    • v.14 no.11
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    • pp.5-17
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    • 2016
  • Purpose - The purpose of this study is to establish an conceptual framework to explain the mechanism of internationalization behavior being used by recently established retailer in emerging countries. Research design, data, and methodology - The existing research on retail internationalization has focused on global retailers located in advanced countries which have expanded their business to emerging countries. That is, "internationalization from top to bottom". However, recent years have seen a reversal in this trend, resulting in the emergence of "internationalization from bottom to top" by retailers based in emerging economies. In order to explore this reversal, this study attempts to develop an conceptual framework based on the theories of "innovation" and "retail format". Results - This study found an conceptual framework which was adopted both a concept of "formula" derived from the theory of retail format and a concept of "production and process innovation" derived from the theory of innovation as a core concept. Conclusions - The conceptual framework provided an understanding of how retailers in emerging countries have gained a competitive advantage over retail companies based in countries with advanced economies. It suggested that innovation that gave these companies a competitive edge was caused by competitive interaction which allowed them to expand to oversea markets.

The Negative Effect of the Covid-19 Pandemic on the Acceleration of Startup Innovation in the Retail Supply Chain

  • JUNG, Kum-Jong;JEON, Byung-Hoon
    • Journal of Distribution Science
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    • v.19 no.9
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    • pp.79-90
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    • 2021
  • Purpose: The covid-19 pandemic has led to the implementation of strict measure such as social distancing and lockdown around the globe and these measures has largely affected the retail industry. This study is to examine the negative impacts of the covid-19 pandemic on the acceleration of startups innovation in the retail industry. Research design, data and methodology: The current authors used the qualitative content approach and the data collection process in this procedure starts with a formulated and direct research question which means that rather than asking how a change in one variable leads to a change in the other, the research question seeks to understand the meanings and experiences derived from the piece of communication. Results: This section outlines how retail companies can overcome the adversely effect of the Covid-19 pandemic on the acceleration of startup innovation in the retail industry. The solutions are mostly from peer-reviewed articles. All retailers should respond to the negative impacts of the covid-19 pandemic to ensure their continuity while accelerating startups innovations in the sector. Conclusion: This study implies that the retailing industry, alongside other sectors, should respond to the negative effects of the covid-19 pandemic by encouraging innovations and adaptations. The study has shown that flexibility is very crucial to adapt during the crisis

The Process Model of Retail Format Creation in the Japanese Eyeglasses Industry : The Case Study of JINS Inc.

  • Cho, Myung-Rae;Mukoyama, Masao
    • Journal of Distribution Science
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    • v.16 no.2
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    • pp.5-18
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    • 2018
  • Purpose - In recent years, new retail innovations have emerged in the Japanese eyeglasses industry and grown as a retail format. The purpose of this study is to establish the process model of retail format creation by examining how a retailer creates a retail format and under what kind of environmental conditions. Research design, data, and methodology - This study pointed out the weakness of the concept of the retail format in existing research on the retail format in existing research on the retail format variation theory and suggested the concept of "Formula" to analyze an individual retailer. This study categorized the subjects categorize the subjects of retail format creation into four categories, and analyzed JINS which is the retail format leader in the Japanese eyeglass industry. This study used secondary data because it is valid. Results - This research found "product handling skill," "changes to consumer purchasing patterns," and "competitive interaction" as environmental factors influencing retail format creation. This study highlighted how JINS adapted those environmental factors to create their original formula and suggested the process model of retail format creation through the JINS case study. Conclusions - This study discussed two theoretical implications and three managerial impressions which were derived from the JINS case study. This study also discussed limitations and further research issues.

A Study on the Distribution Structure of Italian Fashion Product

  • Kim, Mun-Young;Bonin, Laura Maria;Cho, Woo-Hyun
    • International Journal of Costume and Fashion
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    • v.7 no.1
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    • pp.1-10
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    • 2007
  • The Italian fashion industry has achieved a remarkable success in the global market with the distinctive features of its industry structure and product quality, and such a system has been subject to many researches. Especially, the retail structure centered on small speciality retail stores rather than the industry structure of medium and small sized companies and department stores is thought to be the most noticeable distinctive feature that differentiates the Italian fashion industry from other countries. This system is thought to be a driving force behind the continuous development and innovation closely associated with the market. In result, As medium and small size companies are the center of the Italian fashion industry, advantages of small companies based on region, that is, flexibility and innovation of medium and small size companies, close cooperation between companies are utilized and it has been progressing closely with the Italian traditional culture and being modernized based on traditional technological skills.

Spatial effect on the diffusion of discount stores (대형할인점 확산에 대한 공간적 영향)

  • Joo, Young-Jin;Kim, Mi-Ae
    • Journal of Distribution Research
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    • v.15 no.4
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    • pp.61-85
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    • 2010
  • Introduction: Diffusion is process by which an innovation is communicated through certain channel overtime among the members of a social system(Rogers 1983). Bass(1969) suggested the Bass model describing diffusion process. The Bass model assumes potential adopters of innovation are influenced by mass-media and word-of-mouth from communication with previous adopters. Various expansions of the Bass model have been conducted. Some of them proposed a third factor affecting diffusion. Others proposed multinational diffusion model and it stressed interactive effect on diffusion among several countries. We add a spatial factor in the Bass model as a third communication factor. Because of situation where we can not control the interaction between markets, we need to consider that diffusion within certain market can be influenced by diffusion in contiguous market. The process that certain type of retail extends is a result that particular market can be described by the retail life cycle. Diffusion of retail has pattern following three phases of spatial diffusion: adoption of innovation happens in near the diffusion center first, spreads to the vicinity of the diffusing center and then adoption of innovation is completed in peripheral areas in saturation stage. So we expect spatial effect to be important to describe diffusion of domestic discount store. We define a spatial diffusion model using multinational diffusion model and apply it to the diffusion of discount store. Modeling: In this paper, we define a spatial diffusion model and apply it to the diffusion of discount store. To define a spatial diffusion model, we expand learning model(Kumar and Krishnan 2002) and separate diffusion process in diffusion center(market A) from diffusion process in the vicinity of the diffusing center(market B). The proposed spatial diffusion model is shown in equation (1a) and (1b). Equation (1a) is the diffusion process in diffusion center and equation (1b) is one in the vicinity of the diffusing center. $$\array{{S_{i,t}=(p_i+q_i{\frac{Y_{i,t-1}}{m_i}})(m_i-Y_{i,t-1})\;i{\in}\{1,{\cdots},I\}\;(1a)}\\{S_{j,t}=(p_j+q_j{\frac{Y_{j,t-1}}{m_i}}+{\sum\limits_{i=1}^I}{\gamma}_{ij}{\frac{Y_{i,t-1}}{m_i}})(m_j-Y_{j,t-1})\;i{\in}\{1,{\cdots},I\},\;j{\in}\{I+1,{\cdots},I+J\}\;(1b)}}$$ We rise two research questions. (1) The proposed spatial diffusion model is more effective than the Bass model to describe the diffusion of discount stores. (2) The more similar retail environment of diffusing center with that of the vicinity of the contiguous market is, the larger spatial effect of diffusing center on diffusion of the vicinity of the contiguous market is. To examine above two questions, we adopt the Bass model to estimate diffusion of discount store first. Next spatial diffusion model where spatial factor is added to the Bass model is used to estimate it. Finally by comparing Bass model with spatial diffusion model, we try to find out which model describes diffusion of discount store better. In addition, we investigate the relationship between similarity of retail environment(conceptual distance) and spatial factor impact with correlation analysis. Result and Implication: We suggest spatial diffusion model to describe diffusion of discount stores. To examine the proposed spatial diffusion model, 347 domestic discount stores are used and we divide nation into 5 districts, Seoul-Gyeongin(SG), Busan-Gyeongnam(BG), Daegu-Gyeongbuk(DG), Gwan- gju-Jeonla(GJ), Daejeon-Chungcheong(DC), and the result is shown

    . In a result of the Bass model(I), the estimates of innovation coefficient(p) and imitation coefficient(q) are 0.017 and 0.323 respectively. While the estimate of market potential is 384. A result of the Bass model(II) for each district shows the estimates of innovation coefficient(p) in SG is 0.019 and the lowest among 5 areas. This is because SG is the diffusion center. The estimates of imitation coefficient(q) in BG is 0.353 and the highest. The imitation coefficient in the vicinity of the diffusing center such as BG is higher than that in the diffusing center because much information flows through various paths more as diffusion is progressing. A result of the Bass model(II) shows the estimates of innovation coefficient(p) in SG is 0.019 and the lowest among 5 areas. This is because SG is the diffusion center. The estimates of imitation coefficient(q) in BG is 0.353 and the highest. The imitation coefficient in the vicinity of the diffusing center such as BG is higher than that in the diffusing center because much information flows through various paths more as diffusion is progressing. In a result of spatial diffusion model(IV), we can notice the changes between coefficients of the bass model and those of the spatial diffusion model. Except for GJ, the estimates of innovation and imitation coefficients in Model IV are lower than those in Model II. The changes of innovation and imitation coefficients are reflected to spatial coefficient(${\gamma}$). From spatial coefficient(${\gamma}$) we can infer that when the diffusion in the vicinity of the diffusing center occurs, the diffusion is influenced by one in the diffusing center. The difference between the Bass model(II) and the spatial diffusion model(IV) is statistically significant with the ${\chi}^2$-distributed likelihood ratio statistic is 16.598(p=0.0023). Which implies that the spatial diffusion model is more effective than the Bass model to describe diffusion of discount stores. So the research question (1) is supported. In addition, we found that there are statistically significant relationship between similarity of retail environment and spatial effect by using correlation analysis. So the research question (2) is also supported.

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  • A Study on Emergence of Innovative Retailing and Its Development Process (혁신적인 소매업태의 출현과 발전과정에 관한 연구)

    • Park, Chul-Ju;Jeong, Tae-Seok
      • Journal of Distribution Science
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      • v.9 no.1
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      • pp.29-38
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      • 2011
    • Since a distribution market was opened in 1993 after the conclusion of the Uruguay Round (UR), various new businesses emerged in the Korean retail industry, such as convenience shops, supermarkets, specialty stores, non-store marketing methods, and cyber shopping malls, in addition to traditional markets and department stores. Competition among these retail businesses has intensified. According to the National Statistical Office (NSO), the growth rate of the total retail industry has shown a 32% increase in the past 5 years. While department stores, supermarkets, specialty stores, and other non-store retailing venues have shown signs of stagnation at a growth rate of 20-30%, which is similar to the growth rate of the entire retail industry, convenience shops and non-store marketing have shown 60-70% growth over the same period. By comparison, the growth rate of cyber shopping malls has nearly tripled. When applying development aspects of retail businesses through the competition to the retail life cycle, mom-and-pop stores and traditional markets have already entered the decline phase as specialty stores reach their maturity phase and demonstrate their limit of growth. Department stores are now in the latter part of the growth phase, which is still considered to have some growth potential. Big super markets are still in the early part of their growth stage although they were introduced 20 years ago. Meanwhile, retail businesses such as convenience stores, supermarkets, mail order houses, and warehouse stores are entering the middle growth phase and are expected to continue with their quantitative growth. At a time when most retail businesses in Korea are in a state of development or in the full growth stage, what kind of new innovative retailing will appear and develop? Moreover, what growth engine will drive it? This study analyzes the appearance of innovative retailing and its development process by establishing a discussable consumer's choice model through the interlocking mutual behavior of differentiated competitiveness and consumers' choice based on an awareness of this issue. The analysis of the results of this study can be summarized as follows. First, if a new vacuum zone emerges at the retail market level, innovative retailing such as low price/low service or high price/high service will emerge simultaneously. Second, if the number of new businesses in the vacuum zone increases, this will create competitiveness among the businesses, and each retailer will develop raising of level. Third, if a new business that raises the level develops, competition between the new and the existing retailer will occur, and an assimilation process between the existing retailing and the new retailing will be unfolded. Fourth, each retailing will promote distribution innovations in order to break the frontier of the existing distribution technology, and other retailing will follow the innovator. On the basis of an analysis of the abovementioned results, this study presents the following three suggestions. First, responding to the consumer's decision-making process on the attributes of retail shops that promote differentiation in strategies, this study established a consumer's choice model that can be discussed in relation to changes in market share. Second, this study provided an analysis of the emerging and developmental processes of innovative retail businesses using a more precise logical structure on the basis of the consumer's choice model described in this study. Third, the development process of retail businesses discussed in this study presented retailing solutions regarding management aspects on how to compose a strong retail mix that can help retail businesses gain competitive advantages in the market.

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    A Brief Analysis of Amazon and Distribution Strategy

    • Hahn, Yoonah;Kim, Dongho;Youn, Myoung-Kil
      • Journal of Distribution Science
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      • v.16 no.4
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      • pp.17-20
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      • 2018
    • Purpose - The purpose of this paper is to analyze and illustrate Amazon's business strategies and its success in terms of its distribution strategy and business practices. Research design, data, and methodology - This is an analytical case study that examines Amazon's business strategies to demonstrate the importance of technologies to the success and sustainability of its organization. Results - The analysis indicates that the business strategies, including technology, distribution infrastructure, and customer service, are the most vital factor for the success and rise of Amazon, and these strategies have separated Amazon from its competitors in both e-tail and brick and mortar retail industries. Conclusions - Given Amazon's continued growth that came with its constant strive for delivery and cost efficiency, technology innovation, and customer satisfaction, it was inevitable that Amazon would eventually venture into different types of businesses. The previous and current Amazon's business strategies demonstrate that Amazon will continue to focus on developing and implementing new and creative strategies to separate itself from the rest of the retail and e-businesses. Furthermore, retail businesses in the most high-tech countries in the world, including Japan, Korea, and Russia, may have to adopt business strategies that are similar to those of Amazon to maintain their competitiveness.

    A Study on the Changes in Regulatory Policy against Large-scale Retail Stores in Japan (일본의 대규모 소매점포 규제 정책 변화에 관한 연구)

    • Kim, Seung-Hee;Kim, Young-Ki
      • Journal of Distribution Science
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      • v.12 no.11
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      • pp.55-65
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      • 2014
    • Purpose - This study aims to investigate the process of political changes in Japan, which has introduced regulatory policies for large-scale retail stores since the 1930s, as well as the examples, and suggests improvement schemes for our policies in Korea, which imposes restrictions on business hours and forced holidays in accordance with the current Distribution Industry Development Act. Research design, data, and methodology - After examining the political change processes related to large-scale retail stores in japan, this study analyzes individually regulated cases based on the ordinances enacted by each local government. Through case analysis in Japan, this study makes political suggestions that may be helpful for our country substantially. Results - Since there is an obvious possibility that our economic restrictions on business hours and mandatory holidays do not coincide with WTO GATS, it is necessary for large-scale distributors to introduce new social and environmental regulations similar to Japan, rather than imposing controls to restrict free competition and also introduce a policy to induce cooperation with small businesses for the advancement of the distribution industry. Thus, it is desirable to take measures on noise, waste, traffic, and parking for the preservation of the living environment in the surroundings when building new large-scale retail stores. It is also important to establish measures to improve the welfare of neighborhood residents and consumers, create a pleasant urban environment, and make it mandatory to make presentations at public hearings among residents. Furthermore, it should be mandatory to establish regional contribution plans when a retail store is established, and take measures to solve various civil complaints or problems that may occur after entering the market. Moreover, it is desirable for large-scale retail stores that entered the market to induce cooperation in performing various activities in the area with a strong sense that they are all members of the local economy. Conclusions - If introducing social regulations like in Japan, there is probably an advantage that the conflicts seen when large-scale retail stores enter the market are absorbed by adjusting the persons concerned within the established institution in order to establish a field to solve such conflicts systematically. In contrast, there are still concerns regarding chaotic operation without any active attempts to have a conversation with large-scale retail stores and local small merchants due to a sharp conflict among the persons concerned, and if it is a briefing session without any decision of the restrictions on their opening itself, there may be doubts with regard to their effectiveness. Moreover, if the de facto opening is restricted by the introduction of such a briefing session procedure, the choice of whether to protect the existing rights of large-scale retail stores might become problematic. However, such problems could be minimized in a way by forming a separate consultative group for all persons concerned including residents, local governments, professionals, civic organizations, small merchants, and massive retail store-related persons.

    The Effect of Personal Creativity on Knowledge Sharing and Innovation Behavior: Focused on Retail Workers (개인 창의성이 지식공유와 혁신행동에 미치는 영향: 유통업 종사자를 중심으로)

    • LEE, Joon-Pyo;PARK, Kye-Hong
      • Journal of Distribution Science
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      • v.17 no.10
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      • pp.93-105
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      • 2019
    • Purpose - First, empirical research will reveal how personal creativity affects the knowledge sharing and innovation behaviors of organizational members. Second, self-management competency will be verified to explain the causal relationship between independent and dependent variables as a mediating variable and to reduce the time interval. Research design, data, and methodology - There are two major research models. First, personal creativity (professionalism, emotional intelligence, internal motivation) has a positive impact on knowledge sharing (creation of knowledge, organization of knowledge, use of knowledge) and innovation behavior (deriving ideas, implementing ideas, promoting ideas). Second, self-management competency (intellectual capacity, emotional capacity, personality capacity) plays a mediating role. In addition to descriptive statistics and correlation analysis, Cronbach's α was calculated for 259 workers in the retail industry. In addition, confirmatory factor analysis was performed using the AMOS 24.0 program, and the influence on the measurement model was analyzed to verify the structural equation model. Results - First, personal creativity had a positive effect on knowledge sharing and innovation behavior. In other words, it was confirmed that the decision-making process accompanied by individual creativity can create an atmosphere of knowledge sharing and continue to innovate. Second, personal creativity had a positive effect on self-management competency, and self-management competency had a positive effect on knowledge sharing and innovation behavior. Third, self-management competency was found to partially mediate the influence of personal creativity on knowledge sharing and innovation behavior. Conclusions - First, it is important for managers to recognize the value of creative talents who can be a fundamental source of organizational success and competitive advantage, and to attract talented people. Second, managers should be able to develop decision-making processes to develop potential creativity and encourage creative ideas, opinions, or solutions when organizing the work environment of their members. Third, managers should promote the sharing and integration of new knowledge that underlies the creative views and attitudes of teams and organizational members. Unlike previous studies, which emphasize the role of the work environment in which creative behaviors are promoted, this study shows that creativity of individual members, itself, is an important determinant of knowledge sharing and innovation behavior.

    An Efficiency Evaluation of Firms Having Implemented ERP using DEA/Window in the Retail and Distribution Industry (DEA/Window기법을 이용한 유통산업의 ERP 도입 효율성 연구)

    • Baek, Seong-Hyun;Park, Kwang-Ho;Kim, Tai-Young
      • Information Systems Review
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      • v.15 no.2
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      • pp.75-90
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      • 2013
    • This research was undertaken to find out how effectively ERP has been employed by the enterprises through comparing and analyzing the management performance of each enterprise after introducing ERP to Retail and Distribution Industry using DEA technique. According to the research results, efficiency evaluation for each site was calculated through input and output factors to find out comparative ERP system usage efficiency of 10 Retail and Distribution Industry Companies in terms of such factors as employee, quick assets, inventories, sales revenue, operating income. This paper confirms that the companies having launched management innovation by aggressively adopting ERP saw their management efficiency improving consistently, and in the distribution industry, it took at least 3 years before the effect of ERP introduction on enhancing management efficiency became visible. Furthermore, this paper also reveals that, unlike the manufacturing industry which was the subject of the previous study, efficiency was not necessarily proportional to the size of company in the service industry including distribution and export which was the subject of this paper.

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