Multichannel Retailing

Retail Channels for Interacting with Customers

Store

Non-store

However, most retailers are are now using more than one channel to reach their customers

Multichannel Retailers are those retailers that sell their merchandise or services through more than one channel

Q. Which is the largest multi-channel retailer in the country??

Store Channel

Stores offer a number of benefits to customers that they cannot get when shopping through catalogues or the internet

Comprehensive BrowsingTouch & FeelPersonal ServiceCash PaymentEntertainment & Social ExperienceImmediate GratificationRisk Reduction

Catalogue Channel

Catalogue channel provides some benefits to customers that are not available from the store or the internet channel

ConvenienceSafetyQuality of visual presentations

Catalogue Channel

Catalogue Channel

Internet ChannelShopping over the internet provides the convenience and

safety benefits offered by catalogs and other home-based non-store formats. However, the internet channel has the following advantages over store and catalogue channels:

Broader SelectionMore information to evaluate merchandisePersonalization

Personalised Customer Service Personalised Offering

Selling merchandise with “touch & feel” attributes

Perceived Risks in Electronic Shopping

The two critical perceived risks in electronic shopping are:

Security of card transactions Potential privacy violations

Evolution towards Multichannel Retailing

Overcoming limitations of an existing format

Stores ----- Internet enabled kiosks ------ Better service, better sales

Expanding Market Presence

Increasing share of wallet

Insight into customer shopping behaviour

Capabilities needed for Multichannel Retailing

Capabilities Store based retailers Non-store retailers

Develop assortments and manage inventory

High High

Manage People in remote locations

High Low

Efficiently distribute merchandise to stores

High Low

Present merchandise effectively in a printed format and distribute catalogues

Medium High

Present merchandise effectively on a website

Medium High

Process orders from individual customers, electronically

Medium High

Efficiently distribute merchandise to homes and accept returns

Medium High

Integrate information systems to provide a seamless customer experience

Low High

Issues in Multichannel Retailing

Integrated shopping experience

Brand image

Merchandise assortment

Pricing