Authored by Regina Burnasheva
Introduction
The advent of the Internet and providing a variety of channels have changed retail industry. It is suggested that multichannel retailing is moving towards an omnichannel model in which the total integration of various platforms shapes the service interface and creates a seamless experience for the consumers [1]. Most people use the words multichannel and omnichannel interchangeably. However, there is significant difference in that multichannel focuses on business, whereas omnichannel focuses on customers. In the luxury industry context, Burberry, Cartier and Gucci were the first pioneer companies that provided great omnichannel retail experiences for their customers.Nowadays in order to succeed luxury retailers should offer an integrated and holistic shopping experience in their both online and in-store channels. They are finding the way to align these two channels to create a more ideal buying experience for luxury shoppers. For instance, Burberry was among the first luxury retailers which provides Click & Collect service, where luxury consumers choose brands online and then collect those products from store. Other omnichannel services include Reserve in store, Click & Try, Seek & Send, and so on.
The provision of free Wi-Fi network access in the physical store is another key element to facilitate channel integration especially considering that mobiles are currently redefining the in-store experience [2]. Luxury companies Ralph Lauren and Burberry, for example, let luxury shoppers engage with interactive mirrors in dressing rooms blurring the experience between online and brickand- mortar retail store. More recently, to enhance the shopping experience Hermes has installed Wi-Fi in its stores. Wi-Fi plays a significant role in showrooming which relates to the act of looking at a brand in store before purchasing it online. On the contrary, webrooming which relates to the act of searching brand online and buying it in store. According to Digital of Die: The Choice for Luxury Brands report by The Boston Consulting Group (BCG) [3], 41 percent of luxury shoppers were found to research brands online and purchase them offline, while 9 percent were found to check brands at the store and then purchase online.
Many luxury brands are still seeing online and offline as separate, independent experiences. However, in an era of omnichannel retailing, luxury brands to struggle in future’s marketplace should provide a seamless shopping experience where online and in-store work together.
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