• Title/Summary/Keyword: retailing sector

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Lessons from Haitai Distribution Inc's experience in Korea

  • Cho, Young-Sang
    • Journal of Distribution Science
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    • v.9 no.3
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    • pp.25-36
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    • 2011
  • Owing to the rapid growth of hypermarket/discount store formats since 1996, Korean retailing has suddenly attracted the significant attention from researchers. Before the emergence of large scale retailers such as E-Mart, Lotte Mart and Tesco Korea, there were the two retail formats who led the Korean retailing in the modern retailing history: department store and supermarket formats. Nevertheless, there has been little literature concerned about the two retail formats as a case study, while some authors have paid their attention to hypermarket/discount store formats. In addition, when mentioning the development process of retailing history, it is less likely that authors have made an effort to illustrate supermarket retailing history. In order to regard supermarket retailing as part of the Korean retailing, it is interesting to look at a representative supermarket retailer, Haitai, who was one of the subsidiaries of Haitai chaebol. Based on supermarket retailing, the company which was established as a joint venture in 1974 led a supermarket retailing in the Korean modernised retailing history. Before analysing whether Haitai failed or not, the definition of failure should be illustrated. With regard to the term, failure, in the academic world, authors have interchangeably used the following terms: failure, divestment, closure, organisational restructuring, and exit. To collect research data as a case study, the author adopted an in-depth interview method. The research is based on research interviews with 13 ex-staff who left after Haitai went bankruptcy, from store management department to merchandise department. By investigating Haitai's experiences through field interviews, the research found that Haitai restructured organisational decision-making process at the early stage when companies started to modernise organisational charts, benchmarking sophisticated retailing knowledge through the strategic alliance with a Japanese retailer. In respect of buying system, the company established firmly buying functions by adopting central buying system, and further, outstandingly allocated considerable marketing resources to the development of retailer brands with the dedicated team of retailer brand development. In the grocery retailing, abandoning a 'no-frill' packaging concept, the introduction of retailer brand packaging equal to, or better than national brand packaging design, encouraged other retailers to change their retailer brand development strategies. In product sourcing ways, Haitai organised for the first time the overseas sourcing team with the aim of improving the profit margins of foreign products and providing exotic products for customers, followed by other retailers. Regarding distribution system, the company introduced the innovative idea which delivered products ordered by stores directly to each store withboth its own vehicles and its own warehouse in which could deal with dry foods, chilly foods, frozen food, and non-foods, and even, process produce. In addition, Haitai developed many promotional methods to attract more customers like 'the guarantee of the lowest price', and expanded its own business to US in 1996, although withdrew, because of bankruptcy in 1997. Together with POS introduction in 1994, Haitai made a significant contribution to the development of the Korean retailing, influencing other retailers in many aspects. As a case study, the study has provided a number of lessons from Haitai's experiences for academicians and practitioners, suggesting that its history should be involved in the Korean modernised retailing.

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Sports Leadership Theories for Improving Retail Service Quality on Customer Value

  • SEONG, Dong-Ho
    • Journal of Distribution Science
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    • v.19 no.5
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    • pp.13-21
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    • 2021
  • Purpose: The sports leadership theories are crucial in ensuring the success of corporations. This study shall discuss the various leadership theories employed in the sports industry and how they can be incorporated within the retailing sector to enhance the service quality and promote substantial customer value towards all the consumers visiting the retailing stores. Research design, data and methodology: The present researcher gathered textual data on potential solutions for coding of development through web searching method and coded and produced various topics as solution providers. Methods were then established to enhance quality on customer value by the leadership within their businesses, and the researcher subsequently presented the findings. Results: This study provides a total of nine solutions which are helpful systemically for practitioners in the retailer service sector. These numerous solutions can be incorporated within the retail industry through the sports leadership theories employed in the sports industry to help achieve a full and strong customer value. Conclusions: Finally, the present study concludes that the retail industry and management need to ensure that a substantial customer value is built through high-quality services rendered towards the clientele base, employing sports leadership theories such as path-goal, authentic leadership, transformation, situational and leader-member exchange theories.

Channel Integration Quality, Customer Experience and Patronage in Omnichannel Retailing

  • NGUYEN, Hai Ninh
    • Journal of Distribution Science
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    • v.19 no.12
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    • pp.23-32
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    • 2021
  • Purpose: By integrating multiple separate online, offline distribution channels, omnichannel distribution has modernized and revolutionized the retailing sector. Omnichannel distribution supports firms by delivering seamless shopping experiences for customers throughout all touchpoints of the shopping journey. This paper aims at exploring the impact of channel integration quality on customer experience and patronage intentions in the omnichannel distribution context. Research design, data and methodology: An online survey was taken with 351 omnichannel experienced shoppers by utilizing the structured questionnaire. The partial least square-structural equation modeling (PLS-SEM) and Smart PLS software were employed to analyze and test proposed hypotheses. Results: The findings reveal that channel integration quality dimensions including breadth of channel-service choice, transparency of channel-service configuration, content consistency, and process consistency, play crucial roles in the customer shopping experience. The perceived compatibility has been influenced by the integrated interactions in which content consistency and process consistency. The findings also demonstrate the positive and direct impact of perceived compatibility on customer experience, and both factors have substantial effects on customers' patronage intentions. Conclusions: This study sheds light on the literature on channel integration quality, omnichannel retailing experience and customer patronage. In addition, this study provides practical implications for omnichannel retailers in enhancing customer experience and patronage.

East and West Meet in Africa: Effects on Clothing and Textile Businesses in Kenya's Liberalized Economy

  • Wanduara, M.W.;Oigo, E.B.;Nguku, E.K.
    • The International Journal of Costume Culture
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    • v.13 no.2
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    • pp.101-103
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    • 2010
  • Liberalization may be described as the opening up of the economy to the outside world by relaxing government trade and economic policy restrictions to allow imports. In Kenya, this took place in the early 1990s and it had negative and positive effects on businesses manufacturing and retailing clothing and textiles. This case study narrates what has happened over the last 20 years to businesses in Nairobi, Kenya dealing in clothing and textiles. Some of the original businesses have closed down and been replaced by new ones. More small scale Kenyan businesses have been started dealing in clothing imports from the East and West selling both new and second hand clothes. There has been increased employment in the small scale clothing and textiles sector in garment making and retailing. All in all, liberalization has forced large and medium scale textile manufacture to change strategy so that they target selling to the export market more than to the local market.

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Policy Study on Korean Retail Micro Business (국제 비교를 통한 소매업 소상공인 현황과 정책적 시사점)

  • Suh, Yong Gu;Kim, Suk Kyung
    • Journal of Distribution Research
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    • v.17 no.5
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    • pp.39-57
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    • 2012
  • The unabated influx of micro businesses has turned the Korean retailing market to a rat race, which causes severe financial distress for micro business owners due to heavy competition. The woes of these micro business owner's are exacerbated by the presence of large scale distributors such as Super Supermarket(SSM) and large discount stores. In summary, the Korean retail market is overburdened an uneconomically viable. Retailing has low barriers to entry which attracts unskilled labor or those with little capital. These start-ups have low opportunity costs since they would make low wages elsewhere in the economy. Thus, these owners are content with relatively low returns on their investment. These 'subsistence ventures' are maintained for economical viability rather than economic growth. These 'subsistence ventures' intensifies competition among small-scale businesses. The presence of large retail corporations also aggravates the situation. The recent stagnation of the economy has worsened the retail market in Korea. The overwhelming competition solidifies the coarse structural system and the prolonged economic sluggishness has increased the risk of insolvency for micro business owners. As the economy continues to stagnate, the imminent risk in retailing market will rise up to surface threatening economic stability. More systematic inflows and outflows of retailers are required in order to redress this structural problem. It has been empirically shown that the self-employment rate is high in Korea compared to other OECD countries. To draw the comparison of self-employment rate by industry, Korea shows high rates among transportation, whole sale, retail, education, lodging, and restaurants. In the case of the transportation and education service sectors, this high rate can be explained by the idiosyncratic nature of Korean culture. In the transportation sector, political policies favor private cap service and private freight carriers. In the education service sector, Koreans put particular emphasis on education that leads to many private institutions that outnumber other OECD countries. For these singular reasons, Korea maintains high micro business, self-employed rates particularly in retailing. A comparable nation is Japan, with its similar social, economic, cultural environment among OECD countries. Unlike Korea, Japan has much lower rates of micro business which continues to decrease. Also Korean retailers are much more destitute than Japanese. The fundamental problem of Korean retailing is the involuntary exit of these 'subsistence ventures,' micro businesses with low margins, in which a small drop in demand can lead to financial difficulties for the owner. This problem will be exacerbated when Korean babyboomers retire and join the micro business ventures. The first priority in order to cope with the severity of oversupply in retailing is to provide better opportunities for the potential self-employers. There should be viable alternatives to subsistent ventures. Strengthening the retirement program, scrutiny of exit process, reconfiguration of policy funds are the recommendations.

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Customer Relationship Management for the E-Grocery Sector

  • Rha Jong-Youn;Hooker Neal H.;Widdows Richard
    • International Journal of Human Ecology
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    • v.6 no.1
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    • pp.41-59
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    • 2005
  • In this paper, the e-grocery sector of the U.S. is used as an illustrative example of how to assess consumers' demands for customer relationship management and to investigate whether these demands coincide with effective Customer Relationship Management (CRM) strategies suggested by academic researchers and provided by practitioners. Surveys evaluating the perceived importance of CRM items were administered accordingly. The findings show that, overall, consumers' did not differ considerably to the experts. The results of descriptive analyses showed that academicians had a more closely in-lined view with consumers than did practitioners. Although not statistically significant, practitioners perceived loyalty programs to be more important than did consumers or academicians. This might suggest that loyalty programs are primarily serving as a way of data mining, and are thus failing to provide benefits to consumers. Overall, items related to technology deployment were perceived to be more important by practitioners than consumers or academicians.

Retail Changes in the Optical Sector : Empirical evidence from Italian Retailers (광학분야에서 소매 판매의 변화 ; 이태리 소매의 경험적 증거)

  • Padova, Maria Angela;Kim, Douk-Hoon
    • Journal of Korean Ophthalmic Optics Society
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    • v.8 no.2
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    • pp.153-162
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    • 2003
  • The transformation of the Italian retailing has permitted, in the last ten years, a quick modification of the strategic groups' weight at a distributive level. Such change regards the redesign of the competitive assets that sees as protagonist both the main foreign big multiple chains and the Italian retailing, characterized by small dependent enterprises. The analysis is focused on the solutions that independent retailers are adopting in order to strengthen their competitive ability in relation to the aforementioned prospective entrance of foreign distributors in the domestic market. In particular, the most commonly adopted strategic alternative are analysed, in an attempt to characterize the development models that can emerge. The paper presents a case of possible successful solution adopted by some independent retailers for a competitiveness recovery without sacrificing the enterprise's property and autonomy.

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A study of Chinese distribution policies and challenges

  • Su, Shuai
    • The Journal of Industrial Distribution & Business
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    • v.4 no.1
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    • pp.11-14
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    • 2013
  • Purpose - The objective of this paper is to explain how the Chinese distribution market will continue to bring tremendous business opportunities to commercial enterprises given the relatively strong economic fundamentals and substantial government-led measures for boosting domestic demand. Research design, data, and methodology - The study conducted a survey on China's 2011 retail market data. After empirically analyzing the data on retail sales, online retail markets, and franchises, we believe that online retailing in China will maintain its growth momentum. Results - This study shows that 2012 is expected to be a challenging year for the retail sector, as both external and internal pressures are likely to persist. Some of the major challenges facing retailers in China are mentioned below. Conclusions - Retailers in China face several major challenges. First, the uncertain economic outlook is having a considerable impact on China's retail market. Second, China's retailers face an unfair competition environment. Third, they are suffering the impacts of product safety problems.

A Study on theoretical framework of Electronic Trade (전자무역의 이론적 프레임워크에 관한 연구)

  • Jung, Jae-Woo;Hong, Yeong-Sun
    • International Commerce and Information Review
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    • v.8 no.1
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    • pp.143-163
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    • 2006
  • The terms electronic trade, electronic trading and electronic commerce are often used interchangeably, and refer to trading transactions conducted using electronic media. Electronic trade is business-to-business transactions in an industrial context, while electronic commerce refers to retailing and the consumer sector as well as mass marketing. The Electronic trade process is defined as a flow of information (documents) exchanged between enterprises and trade-related firms (shipping companies, foreign exchange banks, forwarders, etc.) in the course of implementing a series of export and import procedures. Electronic trading systems exploit information technology to improve the efficiency of communications and/or to alter the nature of inter-organizational transactions. Many studies exist about the adoption of inter-organizational systems (IOS) and electronic data interchange (EDI), but few focus on electronic trade. The literature on exporting companies's electronic trade adoption and implementation, although extensive, consists mainly of exploratory studies focusing on technological characteristics such as barriers, benefits and usage. The purpose of this study is to broaden this perspective by investigating the environmental, organizational and technological drivers of business-to-business e-commerce adoption.

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The Effect of Personalization on Cross-Buying and Shopping Cart Abandonment Based on the S-O-R Framework

  • Kon Woo Kwon;Gee-Woo Bock;Kyu Min Hwang
    • Asia pacific journal of information systems
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    • v.30 no.2
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    • pp.252-283
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    • 2020
  • Online retail is a growing opportunity for retailers and consumers. Cross-buying provides companies with an opportunity to increase their revenue contributions from existing consumers. In many fields, especially in the service sector, cross-selling is an easier strategy to use relative to increasing revenue rather than acquiring new consumers. Website personalization has been a powerful indispensable tool for web-based companies and end users. Using the Mehrabian and Russell's Stimulus-Organism-Response framework, we experimentally examined how an online retailing merchant's environmental stimuli (S) arouses internal affective and cognitive states (O), that affect consumers' approach-avoidance behavior (R) in cross-buying and shopping cart abandonment in online transactions.