Apparel Retail Research Articles

Understanding customer-perceived values for apparel retailing in India

PurposeInfrastructural revolution, intense competition and customer attraction towards organised apparel retailing in India are potentially affecting traditional retailing. The authors seek to identify the factors that customers perceive during shopping in organised apparel retail store. This study also investigates the indirect effects of identified factors on behavioural outcomes such as loyalty.Design/methodology/approachThe study randomly selected the customers immediately after shopping to minimise the experience's carryover effects. A sample of 648 customers was collected. Data were analysed using multivariate analysis of covariance.FindingsThe study has found that in-store logistics is the second order factor with ease of return, on-shelf availability, product accessibility, shopping convenience, and product information as the variables. The result shows that in-store logistics, store environment, store communication, merchandise assortment, perceived price and employee attribute influence customer satisfaction. As expected, these factors indirectly influence the loyalty.Research limitations/implicationsThis study focused on organised multi-brand apparel retailing, and the survey was conducted in a tier-II city of India only. Hence, any attempt to generalise the findings must be undertaken with caution.Practical implicationsIn the context of multi-brand retailing, competition is fierce. New entrants and traditional apparel retailers hesitate to adopt organised apparel retailing. The findings of this study can be helpful for new entrants and traditional apparel retailers to adopt organised apparel retailing.Originality/valuePrevious studies in the field of multi-brand retailing have mainly focused on the marketing aspect of retail stores. This study contributes to the operations aspect and tests the impact of operational function (in-store logistics) on customer satisfaction.

Evading Responsibility: A Structural Critique of Living Wage Initiatives and Methodologies

Despite the existence of multiple living wage initiatives and methodologies for calculating a living wage, there has been limited improvement in increasing garment workers’ incomes. This paper applies Iris Marion Young’s responsibility for structural injustice theory to connect apparel brands and retailers as the actors with power, privilege and capacity to enact change to improve poverty wages. This paper critically analyses two living wage methodologies and three living wage initiatives, drawing upon Young’s theory to understand why progress on living wage has stagnated. The analysis also considers whether gender has been incorporated, finding that most methodologies and initiatives fail to adequately embed gendered considerations. Findings reveal that the most powerful actors in apparel global values chains (brands and retailers) evade responsibility through performative membership with initiatives that prioritise profit, ignore gendered considerations and require minimum changes from businesses as usual.

Antecedents of Blockchain-Enabled E-commerce Platforms (BEEP) adoption by customers – A study of second-hand small and medium apparel retailers

Increasingly, the apparel industry generates enormous waste and pollution causing extreme water scarcity in emerging economies, where circular economy (CE) adoption can help to alleviate these pressing issues of this century. Environmentally conscious consumers gradually switch to purchasing secondhand clothes, prompting apparel companies to reposition their brands on sustainability dimensions. Nevertheless, buying secondhand apparel comes with a risk of counterfeiting and authenticity of the products. Blockchain can be an effective technology for tracking and tracing the products to their origin if effectively implemented in the apparel industry. In this study, we identify and analyze the antecedents to Blockchain-Enabled E-commerce Platform (BEEP) adoption in secondhand apparel retailing. We conducted a survey of Indian female consumers using the theoretical constructs of consumer’s buying motives and Unified Theory of Acceptance and Use of Technology (UTAUT) model. The results show that buying motives (namely economic motives, hedonic motives and critical motives) and UTAUT constructs (viz. performance expectancy, facilitating conditions and attitude) explain BEEP acceptance for secondhand apparel shopping. Risk of contamination increases BEEP adoption intention and also mediates the relationship between fashion motives and intention. Blockchain technology promotes behavioral intention towards online second-hand fashion clothing shopping, and by so doing reduces waste and promotes CE.

Better or Worse? Effects of online promotion habits on customer value: An empirical study

Online frequent and uninterrupted price discounts easily cause customers to form general tendencies to purchase promotions, or ‘online promotion habits’. Compared with offline promotion shopping, the distinct features of online promotion shopping make customer behaviours highly changeable and leave the effects of online promotion habits on customer value a puzzle. Using a dataset of real transactions from a leading online apparel retailer in China, this study makes continuous observations of customers’ online promotion habits. Drawing on the behavioural learning theory, we empirically investigate the dynamic effects of online promotion habits on customer value. The results reveal that after customers form online promotion habits, their customer value increases significantly. Furthermore, among customers with online promotion habits, online promotion habits exert an inverted U-shaped effect on customer value. Namely, as online promotion habits strengthen, customer value increases accordingly, yet negative outcomes show if online promotion habits exceed a certain level. We discuss the theoretical and managerial implications of our findings, which will enable researchers and practitioners to measure and dynamically manage customers’ online promotion habits.

Life cycle assessment of returnable mailers used for apparel electronic commerce: A case study in Canada

E‐commerce is increasingly popular in the fashion industry in Canada. Based on a case study, this research analysed the environmental sustainability of the returnable e‐commerce package format distributed in Canadian apparel retail channels. The case study compared the environmental impacts of a returnable polypropylene mailer to those of two different expendable packaging formats currently used by a brand owner, such as a corrugated paperboard package and a low‐density polypropylene mailer. A life cycle assessment (LCA) was conducted to examine the environmental impacts of the three packaging scenarios. The foreground data of the LCA were obtained from a brand owner and packaging suppliers in 2021. TRACI 2.1, including 10 life cycle impact categories, was used for the LCA. The comparative LCA results showed that the returnable mailer generated the lowest environmental impact for eight out of 10 impact categories when the final consumers' locations were relatively close to the brand owner or returnable packaging service provider. The expendable corrugated paperboard packaging format contributed the greatest environmental burden in all the impact categories primarily because it used a large amount of material and was relatively heavy. However, the comparative results were changed for some impact indicators depending on the final consumer's location and the number of reuse cycles for the returnable mailer. Specifically, the returnable mailer had a higher environmental impact than the expendable mailer for half of the 10 impact categories when the number of reuses for the returnable mailer was decreased to 10 cycles.

Service Experience and Customer Satisfaction in Offline and Online Services: A Study on Traditional Apparel Retail in Odisha

This study reconnoitres the possibilities of any relationship shift in customer service and customer satisfaction within a new space of the young generations’ involvement in buying traditional apparel in Odisha. This study addresses the possible inputs for discrepancies while purchasing the traditional dress. It involves the marketing mix elements as the inputs to assess the consumer service and further consumer satisfaction as the outputs. Structural Equation Modelling has been applied to determine consumers’ responses to service experience and customer satisfaction within the theoretical inclusion of traditional apparel in Odisha. The study found that service experience does not drive the customers’ satisfaction, and the marketing mix elements do not equally affect the service experience. The findings of this study are relevant for future research on a hybrid buying situation where the traditional products are marketed within young generations’ expectations and aspirations. The study will guide marketers to revisit the roles of the marketing mix in dealing with overall consumer experience and satisfaction.

Eco-Friendly Clothing Market: A Study of Willingness to Purchase Organic Cotton Clothing in Bangladesh

This research study aims to achieve a developing country’s sustainable development in the clothing industry by exploring consumer behavior to a willingness to purchase organic cotton clothing (OCC) and apparel retailers’ responsibilities. Organic cotton clothing development in the fashion industry could play an important role in textile and environmental pollution and create new business opportunities for green clothes. Survey data was collected from top cities in Bangladesh, and 303 useable responses were collected (81.5% male and 18.5% female). In our survey, 60.7% of the participant was employed. This research model was inspired by the Theory of Reasoned Action (TRA) and added some new variable that influences purchase willingness under OCC fashion in developing countries like Bangladesh. The findings of this study stated that consumer environmental concerns and consumer attitudes positively impact the OCC purchase willingness of Bangladeshi consumers. Also, the authenticity and fashionable of OCC products have a significant impact on Bangladeshi consumer purchase intention. Product Performance found an indirect effect on Bangladeshi consumers’ intention. Furthermore, this study will find that the Bangladeshi market is already very aware of the sustainability movement and concerned about environmental issues. Retailers should focus more on environmental awareness of OCC textile and authentic OCC items. Also, this study will update previous research findings on consumer attitudes toward OCC fashion in the Bangladesh market.

Analyzing the influence of store atmospherics on younger generation in apparel retail market with an extended S-O-R model

ABSTRACT The purpose of this study is to examine the effects of store atmosphere on the approach behavior of younger consumers via an extended model based on the S-O-R paradigm. To this aim, a survey was conducted among a random sample of 300 participants in Turkey. The extended model was verified, and its explanatory power was determined by making a comparison between a nested model and the so-called original model. The analysis of the extended model put forward that all basic store atmospherics and stimulus signage were influential on cognitive evaluation, but only the stimulus design cue had a direct impact on affective evaluation. Both cognitive evaluation and affective evaluation were found to affect approach behavior and finally, the cognitive evaluation had a direct impact on affective evaluation.

MAPPING MULTIPLE BRAND-CELEBRITY CONGRUENCE WITH OVERALS: AN EVIDENCE FOR THE MEANING TRANSFER MODEL

This study aims to provide evidence for the meaning transfer model. In Turkey, five apparel retailer brands and five celebrities are evaluated with brand personality and credibility models, respectively via pick any scales. 305 respondents selected with a convenience sampling approach attend the study. In order to compare different types of entities (brands and celebrities) with nominal variables, OVERALS analysis is performed. Associations regarding brands and celebrities are treated as sets of variables in OVERALS analysis. Three out of five brand-celebrity pairs are found to be closely congruent. In the context of multiple brand-celebrity comparisons, this relativistic congruence provides evidence for the meaning transfer model. Moreover, several essential associations in the meaning transfer process (for celebrities sexy, big fan following, and non-controversial public image and for brands stable, responsible, and active) are revealed. Findings of the study and OVERALS analysis are expected to deepen the understanding of the meaning transfer model.

Do or Die? The Effects of COVID-19 on Channel Integration and Digital Transformation of Large Clothing and Apparel Retailers in Spain

COVID-19 has undeniably impacted the retail industry sectors; we are now witnessing the emergence of a large body of research on the effects of the pandemic in retailing. However, few of these studies provide a clear picture of this topic from prior to and after COVID-19. This research sheds light on whether large retailers have adapted their channels by offering integrated and digital services amid the new conditions forced on them. This study assesses indicators of channel integration and digital transformation of all large clothing and apparel retailers in Spain—before and after COVID-19—and analyzes the differences by means of McNemar’s test and one-way repeated-measures ANOVA. The analysis suggests that large retailers were moderately prepared to provide multichannel and omnichannel services and that they focused on integrating quick and easy-to-implement services, such as omnichannel gift cards, or communicating via WhatsApp for customer care services. The study also identifies elements in which large clothing brands should prioritize on after the pandemic to effectively deploy omnichannel strategies.

M-Commerce, Sales Concentration, and Inventory Management

Problem definition: The mobile commerce (m-commerce) channel is poised to be the future of online markets. It offers search features distinct from conventional personal computer (PC)-based e-commerce channels. Its easy accessibility extends the time available for customers to search, although its shopping environment constraints (e.g., small screen size, single-tab browsing) may inflate search costs. Collectively, these competing features cause ambiguity about the mobile channel’s true effect on sales concentration—a key criterion in managing retail operations. The focus of this study is to understand the net impact of the mobile channel on driving sales concentration. Academic/practical relevance: Our study extends the empirical literature focusing on online retailers’ channel strategies and their implication on operations practice. It examines differences in primary online channels—mobile and PC—on shaping sales concentration across products and the cost of ignoring such a difference on inventory management, a core decision for operations managers. Methodology: We collaborate with a large online apparel retailer to access customer-level transactional data. We identify the mobile channel’s effect on sales concentration using a difference-in-differences strategy that leverages a quasi-experiment stemming from the retailer’s decision to discontinue its PC sales channel. Results: We find that the mobile channel increases the share of popular products by 6.4% compared with the PC channel. We also identify scenarios where ignoring this significant sales concentration difference will yield suboptimal inventory stocking by 4.2%–12.9%. Managerial implications: Our paper highlights that the mobile and PC channels have different sales concentrations because of different search features. Ignoring this difference affects inventory decisions, such as safety and cycle inventory levels. Therefore, it is imperative for managers to revise their status quo strategies, such as on inventory procurement, assortment planning, and product display, when integrating m-commerce with e-commerce.

Leveraging personalization and customization affordances of virtual try-on apps for a new model in apparel m-shopping

PurposeVirtual try-on apps (VTOs) hold great potential to transform online apparel shopping, yet their acceptance by consumers has been lukewarm. By drawing on two theories – Sirgy’s theory of the self and Sundar’s theory of interactive media effects (TIME) – the study tests a PLS model with two new constructs: Photo Satisfaction and Consumer Inspiration, and their impact on Adoption Intention.Design/methodology/approachThis mixed methods study examines the effects from personalization and customization affordances in the latest generation of apparel VTOs. The proposed model was tested in a quasi-experimental within-subjects design, as 61 female participants completed a goal-directed and an exploratory apparel shopping task using two VTO apps available on the market.FindingsInspiration induced from the customization affordance in the exploratory task influenced Adoption Intention as strongly as Fit Confidence did. For both conditions, users’ satisfaction with their avatar picture had a stronger effect on Perceived Augmentation than the individual trait of Body Esteem. The study also demonstrates how TIME’s Sense of Agency component could help theorize positive consumer responses to mobile marketing technology, which in our study were induced via the app’s Mix and Match feature. Also demonstrated was that Perceived Augmentation could be influenced by body-image affective judgments made during the pre-task VTO avatar creation phase.Practical implicationsVTO’s customization feature “Mix and Match” appears vital for the adoption of such apps for exploratory m-shopping of apparel. Also important is the satisfaction with one's photograph during the avatar-creation phase. We further suggest that apparel retailers work with Augmented Reality developers to include dynamic avatar capability as well as social sharing affordances in VTOs.Social implications60 billion USD worth of returns occur annually in the online apparel retail industry, mostly related to fitting problems, not to mention the larger carbon footprint from the increased transportation. A more wide-spread adoption of VTOs can not only help with these problems but also lighten the traffic in brick and mortar fitting rooms, a potential hazard at this time of pandemic.Originality/valueThis is the first study to examine Consumer Inspiration in the context of online apparel retailing and to demonstrate the importance of Photo Satisfaction during the avatar-creation phase in influencing the subsequent user experience in apparel VTOs.

Alleviating demand uncertainty for seasonal goods: An analysis of attribute-based markdown policy for fashion retailers

This study develops a model for pricing seasonal goods, helping retailers better cope with demand uncertainty. Specifically, to improve price markdown policies for fashion apparel retailers, we uncover the relationship between fashion product characteristics and consumers’ within-season product adoption behavior. We develop an aggregate demand model and estimate it using a finite mixture model on data from a leading specialty apparel retailer. The demand model identifies two latent classes of products based on the evolution of demand within a product’s lifecycle (i.e., sharply deteriorating vs. stable demand), and accounts for unobserved heterogeneity where mixing probabilities are defined as functions of fashion product attributes. We then run hundreds of counterfactuals to evaluate pricing policies in terms of: (1) timing and (2) depth of price markdowns. Our findings show that the retailer should implement middle-of-the-season price markdowns for products that have high initial prices, are introduced in the summer/fall, or are darker in colors. For other products, markdowns should be shallower and earlier in the season. We show that ignoring the cross-product heterogeneity in within-season demand could result in a 5.77% reduction in revenues. Our solutions provide managerial implications and enable the retailer to predict products’ demand patterns prior to launching products in the market.

The Effects of COVID-19 on the Adoption of “On-the-Shelf Technologies”: Virtual Dressing Room Software and the Expected Rise of Third-Party Reverse-Logistics

The fashion industry is adapting to the new situation caused by the COVID-19 pandemic by changing the structure of its supply chain, much like other industries that experience exogenous shocks. The pandemic affected conditions of apparel retailers: downstream among consumers and upstream among suppliers. It induced retailers to accelerate the adoption of technologies to make their supply chains more flexible and resilient. Before COVID-19, the apparel industry had gradually adopted virtual dressing room (VDR) technologies and crowd wisdom software, both of which reduce the risk associated with online purchases. Apparel retailers also altered the structure of their supply chains by outsourcing product turns via third-party logistics providers. This article analyzes how changes in market demand and supply conditions following the outbreak of COVID-19 accelerated the adoption of VDR technologies. The analysis is based on a conceptual microeconomic model of adopting technologies and changes in the supply chain. We support our theoretical findings with business cases. Understanding the nonlinear relationships among changes in demand, supply chains, and retail technology adoption triggered by exogenous shocks is essential for managers and affects the quality of service.

Effective Sustainability Messages Triggering Consumer Emotion and Action: An Application of the Social Cognitive Theory and the Dual-Process Model

Communication utilizing proper message framing is a crucial component in the promotion of sustainability and other related activities. Additionally, engaging all stakeholders in sustainable communication and endeavors is proven to be essential to corporate success. This is especially true for textile and apparel retailers, as they strive to gain competitive advantages through the incorporation of sustainability in their communication with their stakeholders. Therefore, promotional activities consisting of different message framing types can be a profitable way to reach, inform, and persuade consumers to engage in sustainable activities and to support corporate sustainability initiatives. Based on two theoretical foundations, the social cognitive theory and the dual-process model, this study investigates how different aspects of sustainability and message framing can persuade textile and apparel consumers to engage in sustainable behavior. The findings of this study demonstrated that each message framing type significantly influences the consumers’ emotion. Further, when the textile and apparel consumers purchase sustainable products, as a result of conscious decision-making or without much thought put into the buying decision, the act of buying sustainable products per se compels the consumers to make sustainable choices in the future.

Evaluating retail efficiency using DEA and AHP: a case in the Turkish apparel retail industry

PurposeThe purpose of this study is to propose a comprehensive efficiency evaluation approach to measure the efficiency of the retailers and to determine the relative importance of a wide variety of apparel retail-specific factors that support efficiency.Design/methodology/approachThe first stage of the proposed approach is the measurement of the relative efficiency of the apparel retailers by using data envelopment analysis (DEA) for identifying the best practice frontier and determination of the improvement ratios. The second stage is the prioritization of the factors that are important in the apparel retail efficiency using analytical hierarchy process (AHP).FindingsThe findings of the study revealed that the quantitative criteria to be considered for efficiency through input minimization and output maximization were “number of employees” and “profit before tax,” respectively, however, focusing on output maximization was found to be more critical. In addition, it was seen that the most important qualitative components of efficiency were satisfied customers, qualified staff and branding.Practical implicationsThe managerial actors in the apparel retail industry can be alerted for new strategic actions to adopt best practices or take precautions for future inefficiencies with the help of the results obtained. The customized hierarchical structure allows determining the priority areas that need to be focused on for increasing the performance of apparel retailers.Originality/valueIn this study, DEA and AHP were combined to build a comprehensive efficiency evaluation approach in the apparel retail industry for the first time in the literature. Thus, both qualitative and quantitative variables that are important in apparel retail efficiency were put forward and evaluated. The originality of the hierarchical structure in AHP was its customization to the apparel retail industry.

Market Size estimation of Domestic Apparel Retail in India using Predictive Analytics

The ensuing research aims at estimating the future market size of domestic Indian apparel industry. The study is based on secondary data and uses longitudinal study design. Univariate time series data is used in this study and annual retail sales data, collected from reliable secondary sources, for the period 2000 to 2019 forms the basis of generating predictive models. Owing to the available number of observations in the dataset, the researchers have considered Holt’s exponential smoothing method for the purpose of model generation and making forecasts. The absence of seasonal component in the time series data suggests the use of double exponential smoothing technique which includes effects of trend only. The analysis begins with the forecast of nineteen years with various combination of the coefficients, namely, α and β values and then deviation computed from the actual data. The deviation or the error estimates, namely MSE, MAPE, and MAD have been used to identify the best model in the present research study. The paper concludes with the actual forecasts for the next three years, 2020 till 2022 using the best model, i.e. the model which has resulted in minimum error. To the best of the knowledge of the researchers, this present study makes a maiden attempt to use Holt`s method at an individual level to predict the future market size of the second largest retail industry in India. Apart from the scholarly contribution, the researchers anticipate this study outcome likely to act as an aid to the apparel marketers for their future planning.

Bracketing of purchases to manage size uncertainty: Should online retailers be worried?

AbstractFor online apparel retailers, sizing has proven to be a particularly thorny challenge—no matter how much information is provided online, it is often impossible for an online shopper to determine exactly which size of an apparel item will fit her best. Given the increasing ubiquity of free returns (full refund, no return shipping charge), consumers often manage this size uncertainty by bracketing their online apparel purchases, that is, ordering two additional sizes (one smaller, one larger) with the intention of keeping the one that fits best and returning the others. Since bracketing is a relatively new phenomenon in retailing, its net effect on retailer profits is not well‐understood. From a retailer's perspective, bracketing is detrimental since it leads to an increase in consumer returns and the associated costs, which can be quite substantial. On the other hand, bracketing can also be beneficial to the retailer by alleviating consumers' concerns about size, and driving higher net sales. In this paper, we establish how price can be used as a lever to influence consumer bracketing behavior, and examine the impact of bracketing on the profits of a monopolist retailer who offers free returns. We provide prescriptions for when retailers should encourage or discourage bracketing based on three key parameters: the retailer's reverse logistics cost, consumers' return hassle cost, and the product's match probability. As expected, in many cases it is optimal for the retailer to price such that consumers are discouraged from bracketing, and thus the related returns processing costs are avoided. However, we also find that when the product's match probability is moderate, consumers' hassle cost is low and retailer's reverse logistics cost is low, a price that encourages bracketing is the optimal strategy for the retailer, challenging the conventional wisdom that bracketing by consumers is always bad for retailers.

Determinants of online consumer buying behaviour: an empirical study on apparel retail

Determinants of online consumer buying behaviour: an empirical study on apparel retail

A Study of Customer Relationship Management and Customer Preferences in Apparels with Special Reference to Chennai Retail Stores

Customer Relationship Management (CRM) is a comprehensive approach to developing, sustaining, and expanding customer relationships. Customer relationships, on the other hand, are not widely considered in the businesses of small street vendors. The customer relationship management adoption process in small businesses and the goal of this paper is to expand knowledge and provide a better understanding of the CRM adoption process through an empirical study in Chennai and also particularly bring out the most effective practice that influences customers shopping decision. The Indian apparel retail sector is booming, leading to intense competition. The companies are tailoring CRM initiatives to increase their customer base. The customer’s role is crucial in maintaining long term profitable relationships with the customers. This research attempts to study various touchpoints related to apparel retailing. The study aims at establishing the importance of customer touchpoints in CRM.