Podcast
Questions and Answers
What is a key factor that has changed the retail environment and affected buying decisions?
What is a key factor that has changed the retail environment and affected buying decisions?
Omnichannel retailing entails using multiple channels to sell products while providing a seamless experience for consumers.
Omnichannel retailing entails using multiple channels to sell products while providing a seamless experience for consumers.
True
What term describes forecasting consumer wants and needs in the retail context?
What term describes forecasting consumer wants and needs in the retail context?
Retail buying
Retailers can choose to stock products developed for them as _____ label or buy existing brands from manufacturers.
Retailers can choose to stock products developed for them as _____ label or buy existing brands from manufacturers.
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Match the retail formats with their examples:
Match the retail formats with their examples:
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Which of the following is considered a trend currently affecting retailing?
Which of the following is considered a trend currently affecting retailing?
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Multichannel retailing offers a seamless experience across various shopping platforms.
Multichannel retailing offers a seamless experience across various shopping platforms.
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Name a retailer that evolved from a market stall.
Name a retailer that evolved from a market stall.
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What is a key feature of omnichannel retailing?
What is a key feature of omnichannel retailing?
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Customers prefer to have separate shopping experiences for online and physical stores.
Customers prefer to have separate shopping experiences for online and physical stores.
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Name one challenge retailers face with omnichannel retailing.
Name one challenge retailers face with omnichannel retailing.
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The concept that allows customers to interact with retailers across various touchpoints is called __________.
The concept that allows customers to interact with retailers across various touchpoints is called __________.
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Match the following terms with their descriptions:
Match the following terms with their descriptions:
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What do customers expect regarding delivery timelines?
What do customers expect regarding delivery timelines?
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Retailers are not required to maintain accurate inventory across all channels.
Retailers are not required to maintain accurate inventory across all channels.
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What do customers want retailers to remember across different touchpoints?
What do customers want retailers to remember across different touchpoints?
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What significant trend occurred in retailing in 2016 during Black Friday weekend?
What significant trend occurred in retailing in 2016 during Black Friday weekend?
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Predictive analytics have made customer engagement less effective.
Predictive analytics have made customer engagement less effective.
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Name one reason why companies might shift garment production from industrial core regions to emerging markets.
Name one reason why companies might shift garment production from industrial core regions to emerging markets.
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The rise of online shopping has led to more customers utilizing __________ for picking up their orders.
The rise of online shopping has led to more customers utilizing __________ for picking up their orders.
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Match the following factors with their impact on the global market:
Match the following factors with their impact on the global market:
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Which region has become a leading importer of textiles to Europe and the USA?
Which region has become a leading importer of textiles to Europe and the USA?
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The speed of fashion product life cycles has slowed down due to globalisation.
The speed of fashion product life cycles has slowed down due to globalisation.
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What is one effect of exchanges rates fluctuating when buying in US dollars?
What is one effect of exchanges rates fluctuating when buying in US dollars?
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What has significantly changed the accessibility of fashion today?
What has significantly changed the accessibility of fashion today?
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Fast fashion has contributed to environmental issues by becoming one of the world's top five polluting industries.
Fast fashion has contributed to environmental issues by becoming one of the world's top five polluting industries.
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Who is attributed with the rise of fast fashion and bringing style to the mass market?
Who is attributed with the rise of fast fashion and bringing style to the mass market?
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Fast fashion retailers sell approximately _____ of their merchandise on markdowns.
Fast fashion retailers sell approximately _____ of their merchandise on markdowns.
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What effect has social media had on the retail environment?
What effect has social media had on the retail environment?
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Many fast fashion brands now issue less than 11 seasons a year.
Many fast fashion brands now issue less than 11 seasons a year.
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What major issue is raised concerning cotton production?
What major issue is raised concerning cotton production?
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What is a key benefit of private label buying for retailers?
What is a key benefit of private label buying for retailers?
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E-commerce has significantly decreased in popularity in recent years.
E-commerce has significantly decreased in popularity in recent years.
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Name two benefits of online retailing for consumers.
Name two benefits of online retailing for consumers.
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Retailers profit tends to be higher on private label as they source directly from the ______.
Retailers profit tends to be higher on private label as they source directly from the ______.
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Which of the following is a challenge of online retailing?
Which of the following is a challenge of online retailing?
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In-store shoppers tend to make more impulse purchases than online shoppers.
In-store shoppers tend to make more impulse purchases than online shoppers.
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What is the primary difference between omnichannel and multichannel retailing?
What is the primary difference between omnichannel and multichannel retailing?
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Navigating the internet for online shopping can be ______, confusing, and time-consuming.
Navigating the internet for online shopping can be ______, confusing, and time-consuming.
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What is one expectation of online shoppers?
What is one expectation of online shoppers?
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Study Notes
The Business Context
- Topshop is a retail brand.
The Retail Environment
- Understanding the retail environment is essential for buying decisions.
- Online retailing has significantly altered the retail environment and consumer behaviors.
- Mobile and social media strategies are important for reaching customers.
- Omnichannel retailing integrates multiple channels seamlessly.
- Current trends impact retailing and buying.
Retail Buying
- Forecasting consumer needs is crucial for planning merchandise.
- Planning merchandise assortments satisfies customer needs.
- Selecting vendors carefully is important for merchandise procurement.
- Negotiating vendor contracts is necessary.
- Pricing merchandise involves setting competitive prices.
- Maintaining sales and inventory records is essential.
- Reordering merchandise fulfills customer demand.
Retail Environments
- Fashion retailers target specific demographics.
- Fashion retailing has a long history.
- Successful brands like Gucci are at the top of the global market.
- Retailers like Marks and Spencer have evolved from smaller beginnings.
- Asos and Net-a-Porter have unique positions in e-retail.
Different Retail Formats
- Luxury retailers (e.g., Chanel) offer a wide selection of products.
- Department stores (e.g., John Lewis) provide a wide distribution reach.
- Multiple chains (e.g., Top Shop) offer wide distribution.
- Supermarkets (e.g., Tu at Sainsbury's) provide a comprehensive product range.
- Discount stores (e.g., Tk Maxx) offer competitively priced goods.
- Specialist stores (e.g., Accessorise) focus on particular product lines.
- Niche retailers (e.g., Timberland) target specific market segments.
- Catalog retailers (e.g., Boden) offer products via catalogs or online.
- Pure-play online retailers (e.g., In the Style) operate solely online.
National Brand v Private Label
- Retailers can stock privately-branded merchandise or buy existing brands.
- Department stores and independent retailers may use a combination of branding.
- Branded buying requires selecting products based on the retailer's needs.
- Private label buying involves developing products based on designer input.
- Retailers generally profit more with private labels, sourcing directly from the factory.
The Brand is the Label
- Some retailers only have one brand they use also as their company name (e.g., Gap, H&M, Pink).
E-Commerce and Online Retailing
- E-commerce sales (in the US) increased significantly between 2016 and 2022, (graph provided).
- A shift to online shopping is occurring globally.
- UK E-commerce sales also increased steadily over time from 2012-2018, (graph provided).
- Smartphone sales constitute the largest portion of online retail.
Evolution of Clicks-and-Mortar Approach
- Clicks-and-mortar retailers combine physical and online stores.
Benefits of Online Retailing (Consumers)
- Convenience is a key benefit.
- Finding best prices is easier.
- A wider product range is available online.
Benefits of Online Retailing (Retailers)
- Online retailers don't need expensive storefronts.
- Warehousing can be more cost-effective
- Advertising and promotion costs are often lower.
- Flexible online promotions.
Challenges of Online Retailing
- Navigating the internet can be complicated, time-consuming and frustrating.
- Inability to physically see products.
- Speed of delivery adds to the cost.
- In-store shoppers tend to make larger purchases
Online Shopper Expectations
- Businesses need to improve the customer experience.
- Consumers expect live chat, social media integration, and high-quality content (images and product information).
- Rapid service, and a quick checkout process are also important.
Future of Retailing
- Despite online shopping's popularity physical stores remain important.
- The lines between in-store and online shopping are blending.
- Customers are using stores as test centers, before making purchases online.
- Omnichannel retail is a rising trend.
Omnichannel v Multichannel
- Ominchannel retailing integrates physical and online touchpoints into a unified experience.
- Multichannel retail simply uses multiple channels without seamless integration.
- Today's shoppers use multiple channels regularly so retailers need to integrate their different channels.
Challenges of Omnichannel Retailing
- Same-day delivery requires improved inventory visibility.
- Stock levels must be managed across channels.
- Customer expectations of remembering past orders/purchases need to be met.
Future of Retailing (2)
- Customers expect fast service and instant gratification.
- New experiences for shoppers (e.g., try-on appointments that can be scheduled) are expected.
- More efficient shopping (e.g., kerbside pickup) are seen as valuable features, that customers are expecting.
Future of Retailing (3)
- Online shopping surpassed in-store sales in 2016 for the first time during Black Friday.
- Businesses need to understand customer behavior through data analysis.
- Shrinking physical stores, with increased online sales, is a growing trend.
Future of Retailing (4)
- Businesses are gathering data across multiple channels to improve their interactions with customers.
- More streamlined customer engagement is required.
- Predictive analytics improve businesses’ ability to understand customer actions.
Globalization
- Economies of scale and buying power have improved.
- Customers want more transparency regarding product sourcing.
- Global dispersion, (the shift of production) has significantly affected the fashion business.
- Business activities move to regions of lower labor costs.
- Fashion product life cycles speed up.
Factors for Buyers to Be Aware of in the Global Market
- Fluctuations in exchange rates impact import costs.
- Oil price changes affect manufacturing costs.
- Economic downturns/recessions affect demand and pricing.
- National events, including large-scale events, have a ripple effect.
Democratization of Fashion
- Fashion is now accessible to everyone.
- Digital technology makes fashion readily available.
- Access to fashion has increased and brands reach broader audiences.
Other Issues Impacting the Retail Environment
- Fast fashion (FF) has democratized fashion and impacted consumer behavior.
- FF retail sales have increased substantially in recent years.
- Retailers are adjusting their strategies to incorporate speed and convenience into the customer experience.
Luxury Sector
- Increasing demand from emerging economies drives growth in the luxury sector.
- Globalisation has impacted on international sourcing in the luxury business.
Fast Fashion
- Rapid changes in pricing and collection launches are a feature of the industry.
- The fashion industry is increasingly responding to the demand in the marketplace for faster fashion trends.
Problems with Fast Fashion
- Impacts the environment by causing water shortages and pollution.
- A lot more fashion waste is created due to the high volumes produced.
- An industry that produces many garments which then get thrown away.
- The industry is one of the largest polluting industries.
Summary
- Retail is changing, so buyers must adapt.
- Online and in-store shopping approaches are converging (omnichannel marketing).
- Online/mobile shopping has changed the retail environment.
- Improved customer insights are necessary to improve customer service.
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Description
This quiz covers key concepts in the retail environment, focusing on the buying decisions and strategies needed for successful merchandise planning. It addresses the impact of online retailing, the importance of omnichannel strategies, and the intricacies of vendor negotiations. Test your knowledge on how to effectively navigate the retail landscape.
