jbyoung@okstate okstate.eduedu byoungho99@yahoo.com
Off-line retailer - Experiential Retailing - Technology - Mass Customization - Lean Retailing On-line retailer - E-tailing - Multichannel Retailing
,,, buying ( consignment):,,, + shipping & handling
Off-line retailer - Experiential Retailing - Technology - Mass Customization - Lean Retailing
Experiential Retailing Examples - Prada, Soho, New York City -Sephora -Rainforest Café
Experiential Retailing: Prada, Soho,, NYC
Experiential Retailing: Prada, Soho,, NYC
Experiential Retailing: Prada, Soho,, NYC
Experiential Retailing: Prada, Soho,, NYC
Experiential Retailing: Prada, Soho,, NYC
Experiential Retailing: Prada, Soho,, NYC
Experiential Retailing: Sephora - LVMH, -
Experiential Retailing: Sephora Freedom:. ( ) Beauty:,. Pleasure: Touch and Feel
Experiential Retailing: Sephora (150 ), (25), (22), (16), (9) (9), (1) : 1998, 70
Experiential Retailing: Rainforest café
Technology Technologies in Visual Merchandising: In-store visuals: Plasma screens and liquid crystal displays (Prada shop in NYC) visual
Technology Store planning: - Customer traffic flow map - Visual merchandising software
Mass Customization A combination of mass production and custom-made Customized design & customized fit Examples:
Mass Customization: Land s end, Web site..
Mass Customization: Brooks Brothers
Digital Tailoring: Brooks Brothers 12 2 $100
Mass Customization: Dell Computer Flat monitor (15inch), 30 GB, Pentium 4, Free shipping and handling $699 $449 1
Lean Retailing Product Proliferation Short Product Life Cycles Forecasting Uncertainty Technological Advances Barcodes and Scanners * Product level identification * Shipping container Identification EDI & World Wide Web Automated Distribution Centers Inventory Risk Lean Retailing Weekly replenishment Small order quantities Need for New Supply Channel Management Models Source: Abernathy, et al. (1999). A Stitch in Time, New York: Oxford Univ. Press Inc.,
Traditional Retailing-Apparel Supplier Relations Apparel Manufacturer Bulk Large Shipments Retailer Apparel Plant 1 Low Frequency Retail Order Retail Store 1 Apparel Plant 2 Manufacturer s Distribution Center/Warehouse Retailer s Distribution Center/Warehouse Retail Store 2 Apparel Plant n Retail Store 3 Information flow Product flow Orders Orders Source: Abernathy, et al. (1999). A Stitch in Time, New York: Oxford Univ. Press Inc., p.43
Lean Retailing-Apparel Supplier Relations Apparel Manufacturer Frequent Store specific Shipment Retailer Apparel Plant 1 Ongoing Replacement Orders Retail Store 1 Apparel Plant 2 Manufacturer s Distribution Center/Warehouse Retailer s Distribution Center/Warehouse Retail Store 2 Apparel Plant n Direct Store Delivery Retail Store 3 Information flow Product flow Retail Store n Source: Abernathy, et al. (1999). A Stitch in Time, New York: Oxford Univ. Press Inc., p.56
Lean Retailer Lean Retailer Floor-ready merchandise : 1 SKU level,, UPC, EDI, SCM Source: Abernathy, et al. (1999). A Stitch in Time, New York: Oxford Univ. Press Inc., p.80
All National Chains J.C. Penney Average for Retail Group Lean Retailers All Mass Merchandisers Wal-Mart Stores All Department Stores Dillard s Inc. All Specialty Stores The Gap Inc. The Limited Inc. -5 0 5 10 15 20 25 30 Compound Annual Growth Rates (%) based on Constant 1993 $ Lean Retailer vs. Retail Groups: Comparative Growth Rates of Retailers: 1983-93 Source: Abernathy, et al. (1999). A Stitch in Time, New York: Oxford Univ. Press Inc., p.74
On-line retailer - E-tailing - Multichannel Retailing
e-tailing 1. Front-end tools ( ) Virtual Model: Land s End, HSN.com Smart Label:. ( ) Shop with a friend Live chat with a salesperson: Sample swatch:,
2. Back-end system e-tailing ( ) Data mining personalization ex. You ll also like it supply chain EDI XML (extensible markup language) chain B2B site : ex. tommyb2b.com nike.net
Multichannel Retailing market share. e-tailer off-line business (, ). 1) off-line 2) Order fulfillment, (ex. Webvan ) synergy
Multichannel Retailing. Catalog on-line: Land s end, J. crew, L.L. Bean Brick & Mortar on-line: Gap On-line Brick & mortar : Amazon.com - amazon.com Borders bookstore pick up -400
Multichannel Retailing / off line, catalog, online (ex. J Crew, William-Sonoma, Pottery Barn, Spiegel, Brooks Brothers) ex. : : : Shipping & handling
Multichannel Retailing - Multi-channel gift registries - Order on the web and pick-up in store - Web-to-store promotions - Store-to-web promotions - Bloomingdales.com: - Walmart.com: CD, - Nike.com:, - Staples.com: on-line
. Competitive advantage emerges from pressure, challenge, and adversity, rarely from an easy life (Michael Porter, 1990, p. 174)