Omnichannel Retailing Strategies for Small and Medium-sized Enterprises: Focusing on the Fashion, Cosmetics, and Food and Beverage Industries in South Korea
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Background Omnichannel retailing leverages businesses’ online and offline resources. Given the increasing prevalence of omnichannel sales, these strategies have become the subject of increasing numbers of studies. Most studies on omnichannel retailing have been about purchasing environments and have been conducted on large firms, not small and medium-sized enterprises (SME). This study investigated omnichannel retailing strategies utilized by SMEs to generate practical insights for how SMEs can leverage them to increase their competitiveness and enhance their relationships with customers. Methods This study was conducted as a series of case studies on SMEs in the fashion, cosmetic, and food and beverage industries to identify how they implemented effective omnichannel retailing strategies. The subjects were analyzed through direct customer experience, online observations, and offline store visits. Results Firms in the fashion industry utilized both offline channels and online channels while those in the cosmetics industry mainly utilized online subscription services to offer customized products to customers. Most of the firms analyzed in this study implemented aggressive social media marketing strategies. All of the firms that offered platforms used big data analysis and prediction algorithms to offer personalized services and product recommendations to customers. Many firms also used live commerce to directly interact with customers in real-time. These firms also integrated channels to enhance their brand experiences, which helped them to maintain close relationships with customers. Conclusion This study’s results have three main implications for how SMEs should develop omnichannel retailing strategies. First, SMEs should either utilize various platforms as their foundation or develop as platforms themselves because platforms and the firms that use them can provide mutual benefits. Second, they should implement appropriate and affordable digital technologies. Third, their omnichannel strategies should be sustainable. Engaging in omnichannel retailing by cooperating with other firms and using digital technologies can improve a brand’s image and affect customers’ purchase intentions.
Abstract
Background Omnichannel retailing leverages businesses’ online and offline resources. Given the increasing prevalence of omnichannel sales, these strategies have become the subject of increasing numbers of studies. Most studies on omnichannel retailing have been about purchasing environments and have been conducted on large firms, not small and medium-sized enterprises (SME). This study investigated omnichannel retailing strategies utilized by SMEs to generate practical insights for how SMEs can leverage them to increase their competitiveness and enhance their relationships with customers. Methods This study was conducted as a series of case studies on SMEs in the fashion, cosmetic, and food and beverage industries to identify how they implemented effective omnichannel retailing strategies. The subjects were analyzed through direct customer experience, online observations, and offline store visits. Results Firms in the fashion industry utilized both offline channels and online channels while those in the cosmetics industry mainly utilized online subscription services to offer customized products to customers. Most of the firms analyzed in this study implemented aggressive social media marketing strategies. All of the firms that offered platforms used big data analysis and prediction algorithms to offer personalized services and product recommendations to customers. Many firms also used live commerce to directly interact with customers in real-time. These firms also integrated channels to enhance their brand experiences, which helped them to maintain close relationships with customers. Conclusion This study’s results have three main implications for how SMEs should develop omnichannel retailing strategies. First, SMEs should either utilize various platforms as their foundation or develop as platforms themselves because platforms and the firms that use them can provide mutual benefits. Second, they should implement appropriate and affordable digital technologies. Third, their omnichannel strategies should be sustainable. Engaging in omnichannel retailing by cooperating with other firms and using digital technologies can improve a brand’s image and affect customers’ purchase intentions.
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