Offline Retail Research Articles

The influence of manufacturer encroachment on the supply chain: the conditional role of traditional retailer retail service investment

PurposeThis paper investigates the dual interactive effects of manufacturer encroachment on the supply chain and retailer provision of retail services.Design/methodology/approachConsider a supply chain dominated by manufacturers, retailers, and e-commerce platforms, with the manufacturers selling the same product online and offline. Utilizing Stackelberg’s game theory, examples of wholesale and retail prices and profits of participants in the supply chain under different channels are analyzed. An effective encroachment strategy for manufacturers facing different retail service investment strategies of traditional retailers is given.FindingsWhen traditional retailers do not invest in retail services, they will lose more profit due to competition with the manufacturer. At this time, the retailer does not want the manufacturer to encroach. The traditional retailer’s investment in retail services will enhance its and the manufacturer’s profits, incentivizing the manufacturer to pursue an aggressive expansion strategy.Originality/value(1) Considers a situation where the selling efficiency of the manufacturer is lower than that of the traditional retailer. (2) The interaction between traditional retailers’ retail service investment strategies and manufacturers’ encroachment strategies is investigated where the manufacturer is the dominant player. The three modes of online direct sales, resale, and third-party platform agency are compared to provide a basis for decision-making on different types of manufacturers’ encroachment. (3) Offline retail services not only directly increase sales in the offline market but also indirectly have a negative effect on the online market.

Kiosk Recommend System Based on Self-Supervised Representation Learning of User Behaviors in Offline Retail

Kiosk Recommend System Based on Self-Supervised Representation Learning of User Behaviors in Offline Retail

On the Development Drend of Online Retail and Offline Retail

Due to the changes in many industries after the epidemic, in order to promote national consumption power, China has listed the retail industry as one of the key development objects. This paper studies the historical development of the retail industry, studies the development characteristics of online retail industry and offline retail industry respectively, and analyzes the current development situation and its reasons by means of searching data, analyzing and demonstrating, and making comparison. Through research, this paper finally concluded that the online retail industry and offline retail industry are currently in a situation of mutual integration and joint promotion of development, and this conclusion is a guide for the retail industry research in the new stage. This research would be helpful for scholars and decision-makers to further explore relevant measures. Other articles on the recent situation analysis and future prediction of the retail industry can draw reference from this paper.

Research on the Impact of E-commerce on Offline Retail Industry

This research paper investigates the impact of e-commerce on the offline retail industry, examining both the challenges and opportunities it presents. The research draws on various sources, including industry reports, academic literature, and a case study of Costco, to provide an in-depth analysis of the topic. The paper begins by exploring the evolution of e-commerce and its effects on offline retailers, followed by a discussion of strategies offline retailers can employ to adapt to the changing retail landscape. These strategies include adopting an omnichannel approach, enhancing in-store experiences, utilizing data analytics and AI, and fostering strategic partnerships. The paper concludes with an outlook on the future of the offline retail industry, suggesting that continual innovation and customer-centric approaches are key for success. The findings of this research can provide valuable insights for offline retailers seeking to navigate the rapidly evolving retail environment in the age of e-commerce.

Price Differentiation in Online and Offline Retail: An Empirical Study of Current Practices

ABSTRACT The purpose of this article is to present the practice of price differentiation in multichannel sales conditions. The study reviews the literature on channel pricing policy. The authors set a goal to study the practices of retailers operating in online and offline channels in Poland in terms of price differentiation between channels. Using the example of the EMPIK and SMYK chains, price differences between online and offline channels were analysed for several 100 products in key categories for these retailers. The prices were obtained by scraping the data from the websites of both retailers in November 2022. Statistical analysis was designed to examine differences in pricing by product category, position on the “most frequently purchased” list and price range. This research confirmed previous results that online vs. offline price differentiation was not widely used by leading multichannel retailers in the most popular categories bought online: only two out of 12 retailers elicited for the study were found to perform it. It also confirmed previous findings that if price differentiation was applied, the items were cheaper online more often. However, the average depth of discount was considerably higher. Apart from these general findings, our research delivered detailed insights at the category level as the depth of discount and the share of products sold at a discount online considerably differed between categories with comparable and non-comparable offers. Additionally, this study provided a unique analysis of the multichannel price differentiation strategy in relation to popularity or the absolute price of the product. While in the case of the popularity of the product, the offer uniqueness seemed to play a role, the relation to the absolute price of the product showed a mixed picture and would need further investigation.

The Online Retailer’s Randomized Pricing Strategy to Compete With an Offline Retailer

ABSTRACT Online businesses have become an important sector of the retail industry, generating fierce competition with traditional offline retailers. In light of the growing online retail channels, we have designed a randomized pricing strategy for the online retailer, as the offline retailer’s price remains unchanged over an infinite period. This study compares two competing retailers’ pricing strategies, profits, consumer surplus, and social welfare, in two different scenarios—one in which the online retailer will implement a randomized pricing strategy, and one in which it will not. Conventional wisdom holds that online retailers possess greater flexibility when it comes to offering online promotions that attract more consumers to buy online at lower prices, negatively impacting offline retailers’ profits. Our model suggests that the randomized pricing can also benefit offline retailers and social welfare, but not consumer surplus. We also discuss how consumers’ strategic behavior affects retailers’ pricing strategies and profits. It has been suggested that online retailers should not consider offline transaction costs when formulating promotion probabilities. Finally, we consider cases in which an offline retailer can adjust its strategy. A price-matching policy can help the offline retailer significantly increase profits, but can also benefit the online retailer when consumers are very patient and the utility discount factor is sufficiently small. An offline retailer can benefit from adding an online store only when the offline transaction costs are sufficiently high.

Specificity of Dynamic Changes in Offline Retail Marketing

As a result of many changes in the economy and society, the marketing that is implemented in the retail trade is changing. The inseparable relationship between it and retail is of particular importance for the overall existence and development of any company, regardless of its size. Although neglected offline marketing is important, even if the percentage ratio compared to online marketing is falling, this type of marketing has its place and importance in physical stores. It is a competitive advantage for managers to keep track of the specific dynamic changes in offline retail marketing, which is the subject of this report.

Forecasting Offline Retail Sales in the COVID-19 Pandemic Period: A Case Study of a Complex Shopping Mall in South Korea

This study examines the case of a shopping mall in Seoul, South Korea, based on its offline retail sales data during the period of the enforcement of the COVID-19 pandemic social distancing policy. South Korea implemented strict social distancing, especially in retail categories where people eat out, due to the danger of spreading infectious disease. A total of 55 retail shops’ sales data were analyzed and classified into five categories: fashion, food and beverage (f&b), entertainment, cosmetics and sport. Autoregressive integrated moving average (ARIMA) and exponential smoothing (ETS) models were employed, and the autocorrelation (ACF) and partial autocorrelation (PACF) of each retail category’s sales data were analyzed. The mean absolute percentage error (MAPE) was used to determine the most suitable forecasting model for each retail category. In this way, the f&b and entertainment retail categories, in which people eat out, were found to have been significantly impacted, with their 2022 sales forecasted to be less than 80% of their 2018 and 2019 sales. The fashion retail category was also significantly impacted, slowly recovering sales in 2022. The cosmetics and sport retail categories were little impacted by the COVID-19 outbreak, with their retail sales having already recovered by 2022.

СПІВСТАВЛЕННЯ ПІДХОДІВ: НАУКОВИЙ ОГЛЯД ОПТИМІЗАЦІЇ РОЗДРІБНИХ ЦІН В ОНЛАЙН ТА ОФЛАЙН ТОРГІВЛІ

The aim of this paper is to compare online and offline retail price optimization and highlight the key differences. Online retail price optimization uses algorithms and data analysis to set the best price for an item on an e-commerce platform, considering product demand and competition. Offline retail price optimization involves manual methods, such as cost-plus pricing, market pricing, and psychological pricing, to price items in physical stores. The study involved a review of existing literature on retail price optimization and its application in online and offline retailing. The results showed that data availability is a significant difference between online and offline retail price optimization, with online retailers having access to more data. Online retailers can quickly adjust prices because of automation, while offline retailers need to manually change prices. The results of the study emphasize the importance of price optimization in both online and offline retailing and the benefits of using both methods together. The findings provide valuable insights for retail businesses and can inform future research in retail price optimization.

Managerial Practices and (Post) Pandemic Consumption of Private Labels: Online and Offline Retail Perspective in a Portuguese Context

Currently, given the different dynamics of competition, food retailers are increasingly betting on private labels as a strategy of differentiation and retention of competitive advantages. To this extent, this study aims to assess the antecedents of the purchase intention of food retailers’ private labels, as well as to understand the managerial practices and (post) pandemic consumption retail perspective in a Portuguese context. The results obtained, through a quantitative analysis by means of multiple linear regressions, on a random sample of customers (n = 300) indicate that customer satisfaction and attitude towards his/her own brand are quite favourable, as demonstrated by the existence of a high loyalty to his/her own brand. Additionally, they reveal that the purchase experience, the private-label image, the perceived risk, and the COVID-19 pandemic are prior attitudes towards the private label and its mediation in the purchase intention and recommendation of its products. Finally, loyalty to the private label, store satisfaction and, through these, also the shopping experience were confirmed as determinants of loyalty. These results provide insights to food retailers on aspects to be improved and considered in the design of commercial strategies that promote the intention to purchase private-label products and that win and retain customers and achieve competitive advantages and profitability. Regarding the COVID-19 pandemic, the study reveals that some consumers changed their purchasing patterns, choosing to buy more private-label products at this stage.

Profit Model and Marketing Strategy Based Brand Value Chain: the Example of the Mobile Messaging Application LINE

LINE is the first social media platform to profit from offLINE retail. It has built an all-field value chain based on a series of its cartoon images, implemented a framework for multiple synergistic developments of core businesses (essential, derivative, and cross-industry product business), and created an IP value-integrated business model. It has also delved deeper into the vertical field of IP product marketing, maintained and enhanced user loyalty through scenario-based marketing and emotional marketing, and established the commercial value of world-class social media IP brands.

Research on the Transformation Strategy from Traditional Off-line Retail Stores to New "Internet+" Convenience Stores

Research on the Transformation Strategy from Traditional Off-line Retail Stores to New "Internet+" Convenience Stores

Merging Advantages of Online Shopping with Offline Retail: Can In-store Mobile Technologies Increase Offline Consumer Expenditures?

Merging Advantages of Online Shopping with Offline Retail: Can In-store Mobile Technologies Increase Offline Consumer Expenditures?

Will Internet Market Newness Improve Performance? An Empirical Study on the Internet Market Innovation of Offline Retailers in China

With the increasing impact of the Internet, the transformation of traditional retailers through Internet innovation has become a pressing issue. Based on the theory of innovation and marketing capability, this study investigated the relationships among adaptive marketing capability (AMC), Internet market newness, and innovation performance. The mediation effect of compromise on these relationships was also investigated. Through data analysis of 205 questionnaires in China, the current study confirmed that interaction between AMC and Internet market newness significantly affected innovation performance, and Internet market newness positively affected performance only when AMC was high. The results also demonstrated that compromise mediated the interaction with performance. AMC moderated not only the direct effects on performance by Internet market newness, but the effects on compromise by Internet market newness.

Platform Information Transparency and Effects on Third‐Party Suppliers and Offline Retailers

We examine a model in which a supplier sells products through an online platform and an offline retailer under conditions of demand uncertainty. The actual demand potential can be observed (or predicted accurately using rich sales data) by the platform and retailer, but not by the supplier. The model addresses the following issues. First, the supplier optimizes its multi‐channel strategy, including a selling format choice in the online channel and optimal pricing. Specifically, although a traditional wholesale model is used offline, both wholesale and agency models are prepared online. Given a commission rate set by the platform for the agency model, the supplier chooses one selling format from the two models. The second one is related to the platform's information‐sharing policy. The platform can commit to sharing its demand information with the supplier. This study elucidates how the platform's information sharing alters the supplier's multi‐channel management and subsequently affects the retailer eventually. Results show that the platform charges its commission rate so that the supplier chooses the agency model, unless the consumer demand is sufficiently uncertain. We also demonstrate that the platform's information sharing capability makes the agency model more likely to be adopted. However, information transparency arising from the platform's voluntary information disclosure can be unfavorable to the retailer. Finally, we demonstrate that, with information sharing, a shift from wholesale to agency models can be desirable not only for the platform and supplier, but also for the retailer (i.e., Pareto‐improving).

Offline Retailers’ Price Image Transfer and Repurchase Intention

Offline Retailers’ Price Image Transfer and Repurchase Intention

The Effects of Air Pollution on Sales Promotions and Channel Use Across Online and Offline Retail

When the air quality is expected to be bad, it is common for people to wear anti air pollution masks to protect themselves or systematically restrict their outdoor activities. While this avoidance behavior is beneficial for the customers, it is unclear how deteriorating air quality may affect their other economic activities. In this paper, we focus on the retail sector that is prone to such disruptions. We study how diminished air quality affects the substitutive relationship between offline and online sales associated with a cosmetics retailer located in South Korea. This retailer offers regular and systematic promotion days monthly – during these days, consumers get significant discounts on all their purchases at both the offline stores as well as through the PC and mobile channels. While the point of these promotions is to boost demand on these days, we specifically test how air pollution may affect the actual demand that manifests during these promotion days across the offline and online channels. Interestingly, air pollution significantly affects consumer behavior. In general, polluted air boosts online sales and online promotion effectiveness. Unexpectedly, air pollution is unlikely to hurt the offline sales, and even increase offline sales and offline promotion effectiveness. We also find a notion of the inverted-U shaped reaction to the seriousness of polluted air consistently in offline sales. These show the combined effect of channel substitution and recreational shopping. Considering the significance and size of the effect, this paper points out that climate change should be added in the function of the business.

Pedestrians Detection of Offline Retail Stores Based on Computer Vision

Pedestrian Detection is a sub-task in the object detection due to it plays an important role in video surveillance. This project train model algorithm by using offline retail data and intelligent identification based on the offline retail brand store scene and focuses on the two core personnel of the retail scene-shopping guides and customers. This project detects pedestrian’s localization and their key points by using deep learning and computer vision technologies.

Consumer Behavior Analysis in the Offline Retail Stores based on convolutional neural network

Pedestrian attributes recognizing (PAR) is an important task in computer vision area due to it plays an important role in video surveillance. On the other hand, pedestrian visual attributes are treated as middle-level semantic features which can provide calibration information for high- level human related visual tasks in order to improve the discriminative ability of the models, such as pedestrian detection, people tracking, person re-identification, action recognition and scene understanding. However, the most study of PAR is based on single person. In this work, I implements a multiple pedestrian attributes recognition model based on the offline retail scenes. This model combines object detection and multitask classification techniques and can be trained end-to-end directly for back propagation. This paper also demonstrates the performance of the final model through a series of experiment.

Effectiveness of Location-Based Advertising and the Impact of Interface Design

ABSTRACT Offline retailers increasingly use location-based coupons to target consumers in their vicinity in real-time. The rationale for the use of location-based coupons is that geographic proximity increases the relevance for consumers and, thus, the effectiveness of these campaigns. Two key interface-specific aspects of location-based coupon applications that influence their effectiveness are 1) the provision of distance information and 2) the distance-based ranking of coupons. The aim of this paper is to study and quantify the impact of these two key aspects of interface design on the effectiveness of location-based coupons. We conduct a randomized field experiment with 399,913 observations, including 3,499 different coupon promotions offered by 3,930 different stores located in 2,392 ZIP code areas in a large Western European country. Our results show that the most effective interface design for location-based coupons is based on a distance-based ranking. Furthermore, we find significant differences in the impact of distance and display rank based on the interface design and the actual geographic location of users. Our results thus contribute to the understanding of consumers’ behavioral responses to location-based advertising and provide important implications for the interface-design of location-based advertising applications.