Drivers and barriers of omni-channel retailing in China

Abstract

PurposeThe purpose of this paper is to explore the drivers and barriers to omni-channel retailing in China, and attempts to understand how companies formulate their business strategies during their transformations to omni-channel retailing.Design/methodology/approachThis study adopts an exploratory case study approach to investigate the omni-channel retailing transformations of two well-established Chinese fashion apparel retailers. The study draws on multiple sources of evidence, comprising: interviews with eight business executives from three major operational departments; on-site observations in firm’s retail stores, factories and distribution centres; and secondary data review of firm business reports, news, whitepapers and archival records. The findings are established through a consistent within-case data analysis and cross-case comparison.FindingsThe study reveals that the two retailers formulated different strategies in developing their omni-channels, and exhibited different degrees of success. The similarities and differences in the drivers, as well as the barriers, were analyzed and compared in this study. Operational variations (i.e. enablers and inhibitors) due to the unique context of the Chinese market were also explored. The findings reveal that coherent leveraging firm resources and capabilities from the three perspectives – marketing, logistics and supply chain, and organizational management – is critical to the full implementation of omni-channel retailing. They provide relevant managerial insights that can assist firms in formulating appropriate strategic action plans during the transformations.Originality/valueAs a theoretical contribution, this paper identifies a set of drivers and barriers for omni-channel retailing in the developed market, and classifies them into three categories: marketing; logistics and supply chain; and organizational management. The empirical-based qualitative analysis reveals the key factors impacting on omni-channel retailing within the Chinese market, and suggests a series of practical implications for local retailers planning to embark on omni-channel retailing.