Disruptions in Iranian Beauty Retail through Digital Transformation

Abstract

Given the pace of changing technology in retailing, researchers are pursuing a systematic knowledge of the nature of evolving technology in retailing, as well as examining the impacts of new technology in this business. Nowadays, traditional retail establishments encounter enormous challenges from online retailers, and intelligent and immersive retail technology is a valuable tool for creating a unique in-store experience. As a result, the focus of this study will be on customers' views toward new technologies, as well as the customer's preferred purchasing channels for beauty products and the impact of these technologies on customer behavior. Hence, this research can provide new insights on consumers' preference for online or offline retail formats in the Iranian beauty business, allowing for the creation of a precise image of future retail practices in store-based retailing or e-retailing in Iran. In addition, the goal of this paper is to gain a deep understanding of how beauty customers feel about the importance of new technology in offline settings. Qualitative data from 18 in-depth consumer interviews reveal several drivers for purchasing from online platforms among participants, including discount price, convenience, trust, interaction or getting information by reviewing other customer's comments, etc., as well as several barriers (the lack of the opportunity to test products, lack of communication with retail staff for getting information, lack of confidence) to consumers' acceptance of purchasing online. The use of digitization in physical stores as a means of empowering them is highlighted by the juxtaposition of these characteristics as hurdles or drivers. The findings have a number of managerial ramifications.