Retail Business Model Research Articles

Understanding Traditional Retail Dilemma and Identifying Possible Solutions Based on New Retail Model: A Case Study of Chinese Market and Fresh Hema

The COVID-19 pandemic and online shopping have hit traditional retail which is still struggling to transform, while academics lack an up-to-date and systematic summary of the traditional retail dilemma. In addition, the New Retail business model appears as a potential solution. However, it remains to be seen whether it can provide a more effective means for physical retailers to stay competitive. In this instance, this paper attempts to summarise the dilemma of traditional retail from the perspective of CPT theory and to identify potential solutions that emerged from the New Retail model. The author employs the case study approach to investigate the Chinese retail market and Fresh Hema. Also, the Data Analysis Spiral is used to analyse secondary data. The findings demonstrate that the retail dilemma reflects on the channel, individual, tangible, and tangible aspects and that the New Retail model can handle the majority of problems with the exception of corporate awareness and monetary issues.

Transformation and Upgrading of Fresh Brand Retail Mode under the Background of Consumption Upgrading -Taking Freshippo as an Example

In recent years, China's retail market has developed vigorously, and technological progress superimposes demand changes, driving the innovation of new retail(NR) business models. Starting from the problems in the traditional retail industry, this paper analyzes the success of Freshippo in the context of consumption upgrading and uses the case analysis method to study, indicating that the three elements of "people, field and things", the change and upgrading of marketing channels and service processes are the key factors to promote the successful breakthrough of Freshippo. At the same time, the successful breakthrough of Freshippo provides experience for the transformation and upgrading of traditional retail enterprises. It offers new ideas to solve the dilemma of the traditional retail industry, enhance consumers' consumption expectations, and improve the supply reality of enterprises. This, in turn, promotes the development of the NR industry.

ФУДШЕРИНГ: НОРМАТИВНО-ПРАВОВОЕ РЕГУЛИРОВАНИЕ И ВЛИЯНИЕ НА ДЕЯТЕЛЬНОСТЬ ПРОДОВОЛЬСТВЕННОЙ РОЗНИЦЫ

The purpose of the study is to develop rec-ommendations for the use of food sharing in food retail in Russian Federation, taking into account legislative initiatives to regulate the distribution of food surplus. An analysis of the legislative initiative submitted to the State Duma of the Russian Federation was carried out. It is shown that the optimal op-tion for food sharing in Russia is its imple-mentation based on the food retail trade in-frastructure. It is shown that food sharing should become an important element of the food retail business model and a tool for its ESG transformation.

Islamic Minimarket Index based on Maqashid

This research explores the concept and implementation of Islamic minimarkets as a retail business model run in accordance with the principles of Islamic economics. The main focus of this research is to understand the extent to which Islamic minimarkets integrate Islamic moral, ethical and economic principles into their daily operations. Through an in-depth analysis of shariah compliance, product innovation, and social impact, this research aims to provide better insights into the potential and challenges in the development of Islamic convenience stores in the modern retail ecosystem. It is hoped that the results of this study will contribute to our understanding of the incorporation of sharia principles in retail businesses as well as provide guidance for business owners and stakeholders to develop and support Islamic convenience stores as a sustainable and ethical alternative in today's market economy.

Freshippo's New Retail and New Logistics Business Model Development Strategy Analysis

Combines the traits of the new retail sector with the new retail business model as its subject of study. Because Freshippo is the current benchmark company for new retail in China, this paper examines business model innovation for retail businesses in the context of new technology and a new consumer environment by focusing on the challenges Freshippo faced during its development and potential solutions. Freshippo must completely comprehend the issue as it is and emphasize its own unique qualities. They need to conduct refined management, make full use of the logistics equipment, and enhance delivery management.

China’s New Retail Business Model: the Case of Super Species

Purpose: The aim of this study is to explore the purpose of investigating the business model of "New Retail” which is crucial for understanding industry innovation, enhancing the customer experience, exploring business model innovation, assessing economic impact, and recognizing global influence. Theoretical framework: This comprehensive theoretical framework provides the foundation for analyzing the multifaceted dynamics of "New Retail" with the inclusion of value proposition, value network, revenue model, tacit knowledge, and explicit knowledge. Design/methodology/approach: The research methodology employed in this study encompasses a case study of innovative retail businesses, Super Species. It investigates how these businesses have leveraged technology to enhance customer experiences. Findings: The study's findings underscore the pivotal role of "New Retail" in reshaping the traditional retail landscape through technology-driven innovations. It elucidates the impact of "New Retail" on industry dynamics and its potential to secure competitive advantages through analyzing the business model. Research, Practical & Social implications: This research has implications for understanding the transformative power of "New Retail" in the retail industry. It provides insights into consumer expectations, policy influence, and the integration of online and offline retail. Additionally, it highlights the importance of new retail business model and its effects on economic and global dimensions. Originality/value: The originality of this study lies in its comprehensive examination of "New Retail" as a transformative force in the retail industry. It explores the interplay of digital technologies, consumer behavior, government policies, and innovative business models, shedding light on the unique value proposition and implications of "New Retail."

A Comprehensive Bibliometric Analysis of Live Streaming Commerce: Mapping the Research Landscape

Livestreaming commerce (LSC) has transformed the retail business model, introducing it as an integral channel of distribution in social commerce. Numerous existing contemporary research literature highlights the absence of LSC-underpinning theories. The paramount aim of the present study is to furnish a comprehensive reference for forthcoming analyses by conducting an all-encompassing meta-review of the literature. The present study adopted VOSviewer software package to conduct a bibliometric analysis of 75 articles in domain. The conducted comprehensive literature analysis reveals current LSC research segments, classifying significant discoveries into three broad areas of specialization: streamer-focused research, consumer-focused research, and platform-focused research. These subdomains contribute to the existing knowledge base by identifying underpinnings theory, methodologies, and eight core themes that have emerged: behavior, credibility, trust, adoption, costs, information dissemination, purchase intention and knowledge acquisition. A comprehensive study is a valuable tool for pinpointing pivotal research areas that have been extensively examined while establishing a strong foundation for detecting potential obstacles and emerging patterns that could influence forthcoming investigations. This study aims to fill the gap by conducting a comprehensive review of this emerging phenomenon. This study categorizes key findings into three specialization and identifies underpinnings theory, and methodologies for each subdomain. By exploring key themes in the field, this study sheds light on important areas for future research in LSC.

Nykaa: retailing decisions in an emerging market

Learning outcomes By working through the case and assignment questions, students will be able to conduct a marketing environmental analysis to aid strategic decisions; analyse the first-mover advantages of a retail firm and how these can be sustained; comprehend online retail business models and the challenges therein; understand the trade-offs of online/offline retail experiences specific to an emerging market’s beauty and personal care sector; conceptualize and formulate actionable growth strategies that balance the individual and collective requirements of brick and mortar and retail e-commerce environments. Case overview/synopsis The case is set in 2022, right after Nykaa – the pioneer of beauty and wellness e-commerce platforms in India makes a blockbuster stock market debut in 2021. Starting in 2012 with a disruptive online model for selling beauty and wellness products online in India, Nykaa had come a long way with expansions in physical retail and other segments such as fashion. The firm, which initially aimed to be a virtual store, is now thinking of aggressively expanding in the brick-and-mortar retail space as it opens its 85th retail outlet. Falguni S. Nayar, founder and CEO of Nykaa, wanted to roll out 300 physical stores targeting 100 cities in India in the next couple of years. She aspired to establish Nykaa as a category leader as the “Indian Sephora” in the beauty and personal care market. Nykaa’s first-mover advantage in the online beauty and personal care marketplace worked well to establish it as a brand with positive endorsements by digital shoppers that enhanced the investment potential with potential financiers. However, the pandemic had brought every physical retailer to the online platform. Most e-commerce platforms dealing in grocery to lifestyle had added personal care products to their existing merchandise. Additionally, several start-ups had ventured into the online marketplace. Online was a cluttered marketplace with little to no differentiation. In this bloodbath, would the first-mover advantage for Nykaa in the online space still count as a competitive advantage? Nayar was all set to expand Nykaa’s physical presence aggressively. The concern was that the beauty and personal care segment had also moved online as a function of long stay-at-home periods. In the post-pandemic times, would the customer indeed revert to brick and mortar once again? Nykaa was also into product formulations, but so was every big and small player in the space. What was the differentiated winning formula for the consumer’s heart and mind? Complexity academic level The case can be effectively used in foundation courses in marketing and a wide range of specialized courses on marketing management (core/foundation course), retail marketing and e-commerce/digital marketing and e-commerce for B-school learners. The complex decision points faced by an innovative e-commerce start-up firm on its road to market expansion make the case suitable for niche courses such as Marketing for Start-ups. Moreover, learners in executive MBA programs with considerable experience can benefit from the case analysis that balances a growing retail company’s long- and short-run objectives. Supplementary materials Teaching notes are available for educators only. Subject code CSS 8: Marketing.

Retail Business Model Change in Digital Transformation: A Case Study of Retail Supermarkets in Vietnam

With an increasing level of digitalization in the retail sector, retail businesses are in the process of adapting their business models to the new digital era. E-commerce and other digital tools have transformed the retail industry. The study aims to investigate the impact of digital transformation on the business model of retail supermarkets. Based on approaching business model theories and applying them to the actual analysis of retail supermarkets, through investigating the impact of digital transformation on the business model of retail supermarkets available on the Vietnamese market, future business models are proposed for retail supermarkets. The study results improve the understanding of retail business model transformation following digital transformation, presenting new research related to the impact of digital transformation on retail businesses or companies’ business models. This study also contributes to how business models can be used as a unit of analysis when investigating changing business models.

An energy-as-a-service business model for aggregators of prosumers

Traditional retail business models price electricity using volumetric tariffs, which charge customers for the unit of energy consumed. These tariffs were designed for passive consumers with low flexibility. In this paper, we argue that these volumetric tariffs are unsuitable for prosumers with high flexibility since they are unable to adequately value the flexibility of their distributed energy resources in multiple electricity markets. This reduces the interest of prosumers participating in aggregators’ business models. To address this issue, we propose a new business model for aggregators of prosumers, based on the concept of energy-as-a-service. In this business model, prosumers pay a monthly fee for aggregators to represent and optimize them in multiple wholesale electricity markets, including in energy and ancillary service markets. The monthly fee is computed by a new techno-economic simulation framework proposed in this paper, which can also be used to estimate the profitability of the new business model from the perspectives of both the aggregator and prosumers. Our experiments on a portfolio of real prosumers from Australia show that the new business model maximizes the economic benefits of both the aggregator and prosumers by increasing the average profit of the aggregator by 438% and reducing the average electricity cost of prosumers from $583/year to $0 when compared to two of the most common retail business models available in the Australian market. In other words, the economic benefit for prosumers is free electricity. In addition to this benefit, the new business model also provides simplicity and predictability to prosumers, as they are offered a guaranteed outcome before providing the services.

Adapting the retail business model to omnichannel strategy: A supply chain management perspective

AbstractRetail firms have developed new product and service offerings to meet the changing needs of omnichannel customers. While, prior research has documented these offerings in detail, little is yet known about how retail firms can best adapt different aspects of their organizations to the new omnichannel environment. We specifically focus on the intra‐firm changes that affected the role of the firm's supply chain organization and its interactions with other business entities within the retail enterprise. This paper provides an in‐depth understanding of the new business processes, organizational structures, governance mechanisms and customer interactions; collectively described as the retail business model (BM). Drawing on the tenets of BM theory, we present findings from a qualitative study of 15 leading U.S. omnichannel retailers to identify key elements of the new retail BM, develop a conceptual framework of the BM innovation process, and highlight the pivotal role of the supply chain organization in helping firms adapt and implement the omnichannel strategy. We conclude by developing research propositions to articulate the connections among different elements of the BM innovation process and how firms can institutionalize this process to respond to the everchanging retail business environment.

Building A Brick-and-mortar Communications Retail Business Model from A Value Chain Perspective

As China's economy picks up and the demand for consumer upgrading continues to rise, the telecommunications retail industry has huge potential and opportunities for development. Based on the value chain perspective, this paper selects Xunjie Communications Group as the research object, uses the nine-factor canvas model as the analysis tool, and proposes a new analysis factor of "internal competition" in the context of enterprise development. Finally, this paper proposes recommendations to enhance the level of independent innovation, improve the level of supply chain management, expand business line diversification, and expand the focus on sinking markets, to provide a business model reconstruction path and specific strategies for communication retail enterprises.

Research on Luckin Coffee Brand Creative Design and Business Model

After a deep financial crisis, Luckin Coffee made a series of adjustments to the new retail business model and brand creative design. Let it re-establish a good image in front of the public. The product will have good economic and social benefits, which have certain reference significance for similar marketing enterprises. The article will use the Survey method to study. The article will cover the process and impact of the deep financial crisis, business model self-help, and the creation of popular products. An in-depth study explores Luckin Coffee’s Brand Creative Design, such as brand culture design, brand culture media, brand APP design, and offline brand experience store design. The article finds that design, as an effective marketing method, has a positive effect on establishing corporate brands. As a designer, the concept of marketing and the needs of the public must also be integrated into the design. This determines whether the design can succeed, whether it can open up and occupy the market for the enterprise, and whether it can help the enterprise survive and develop. In terms of business model, the company should use Internet technology and big data capabilities to empower product development and store operations.

Consumer’s Personality Traits and Knowledge-sharing Behavior on Shoppertainment Platforms: The Mediating Role of Subjective Well-being and Trust

Objectives: This research analyzed the direct and indirect influences of consumer personality on knowledge-sharing behavior through shoppertainment platforms using subjective well-being and trust as mediators. Methods/Analysis: A questionnaire survey was developed and distributed to 320 consumers with familiarity and experience in purchasing products from the TikTok shop and sharing knowledge, information, news, and purchasing experiences with the Thai TikTok community. This study adopted non-probability and purposive sampling techniques, with measurements and structural model assessments performed before hypothesis testing using the partial least squares structural equation model (PLS-SEM) with SmartPLS statistical software. Findings: Extraversion and openness to experience had a direct positive influence on trust, while neuroticism showed a direct negative influence on trust. Extraversion had a direct positive influence on subjective well-being, while neuroticism showed a direct negative influence on subjective well-being. Both trust and subjective well-being directly influenced knowledge-sharing behavior on the shoppertainment platform. Extraversion and openness to experience positively influenced knowledge-sharing behavior on the shoppertainment platform via trust, while neuroticism negatively influenced knowledge-sharing behavior on the shoppertainment platform through trust. Importantly, extraversion, openness to experience, and agreeableness positively influenced knowledge-sharing behavior on the shoppertainment platform via subjective well-being, with neuroticism negatively influencing knowledge-sharing behavior on the platform through subjective well-being in the same manner. Novelty/Improvement:Results contribute to an improved understanding of the mechanisms of a robust and competitive online retail business model in the digital era that can best deliver business sustainability by elevating consumers’ knowledge-sharing behaviors to facilitate purchasing decisions on goods or services via shoppertainment platforms. Doi: 10.28991/HIJ-2023-04-01-014 Full Text: PDF

Reverse channel selection for commercial product returns under time-to-market and product value considerations

AbstractThe advent of mobile channels have changed retail business models, the choice of retail mix, and shopper behavior. As consumers do not differentiate among the channels where they try, purchase and/or take delivery of their product, they also expect maximum flexibility in the product returns process. On average, retailers forecasted returns to reach about 16.6% of the total merchandise that customers purchased in 2021, according to the National Retail Federation, which is an increase from an average return rate of 10.6% in 2020. The resulting cost of returns amounted to $761 billion worth of merchandise in 2021 (Repko in A more than $761 billion dilemma: retailers’ returns jump as online sales grow. https://www.cnbc.com/2022/01/25/retailers-average-return-rate-jumps-to-16point6percent-as-online-sales-grow-.html. Accessed 17 June 2022, 2022). For retailers and manufacturers, integration of different reverse channels is extremely important to deliver the seamless experience demanded by today’s discerning consumer while ensuring the profitable handling of the returned products as well as ensuring the environmental sustainability of the retailing operations. Regardless of which channel receives a return, the reverse logistics network should have the flexibility and the capability to remarket or to recover the value in the returned product in a cost efficient and timely manner that maximizes firm profitability. To the best of our knowledge, this paper is one of the first studies that develops a linear programming model with profit maximization objective to help determine how to optimally decide the returned product touch point(s) in the reverse logistics network. Unlike the extant literature, our model explicitly incorporates the marginal value of time for returns, product characteristics as well as the underling reverse logistics network configuration in return channel selection strategy. We present a comprehensive analysis on how and to what extent the return channel selection is dependent on the product characteristics such as time-based value decay rate, defective rates, and disposal rates as well as the network structure. Using data from HP and Bosch Power tools operations as well as real geographical US data, we show that our decision model can effectively help determine the reverse logistics network and the type of facility where a product is returned as a function of product characteristics and economic parameters. Our work emphasizes that product returns and waste reduction, improved firm sustainability and profitability can co-exist through effective reverse logistics planning.

The Role of E-commerce in Transforming Retail Business Models: Challenges and Opportunities

This paper examines the transformative impact of e-commerce on traditional retail business models. By analyzing case studies of retailers that have successfully adapted to the digital marketplace, the study identifies key challenges, such as logistics and customer engagement, as well as opportunities for growth and innovation. The findings underscore the necessity for retailers to embrace digital strategies to remain competitive in the evolving market landscape.

Modern retail market and business models of Russian leaders

Modern retail market and business models of Russian leaders

The Different Phases of the Omnichannel Consumer Buying Journey: A Systematic Literature Review and Future Research Directions

In recent decades, retail has been faced with a challenging scenario, resulting from the digital transformation driven by advances on the internet that has transformed retail business models, especially in commercial transactions, giving consumers a new shopping experience. However, it has been a challenge for retailers to maintain the same shopping experience in different marketing channel formats, mainly with regard to understanding the consumption habits of consumers and what can influence their purchase decisions. As far as is known, the buying process is not only about the act of buying. There is an entire buying journey that must be studied to ensure customer satisfaction from the first contact to the after-sales experience. In this context, this article identifies and analyzes the stages of the omnichannel retail purchase journey from the consumer’s perspective. To achieve the proposed objective, this study was conducted through a systematic literature review in accordance with the SPAR-4-SLR protocol. The results present several analyses that demonstrate the complexity involving the consumer’s perspective in the purchase decision process. The insights show how complex it can be to for companies to manage the purchase journey due to the individuality of each consumer. The main finding shows that most marketing studies do not address the omnichannel consumer journey and, when they do, they focus on specific parts to the detriment of a more holistic view of the buying process. The originality of this article lies in the fact that few studies on omnichannel retail have focused on the integration of all touchpoints using an empirical longitudinal evaluation.

Construction Mechanism of Data-driven New Retail Business Model Loop: A Case Study of Hema

As the development driving force and new production factor in the era of digital economy, data plays an important role in new retail business model innovation that begins to show the characteristic of closed loop, a term we define as data-driven new retail business model loop, however, we know little about this process and the mechanism behind. In this paper, grounded in an in-depth case study of Hema, a fresh new retail enterprise in China, we systematically explore the construction mechanism of data-driven new retail business model loop through data network effects theory. The findings reveal that the construction of data-driven new retail business model loop includes three phases, namely start, expansion, and reinforcement, they are manifested in the dynamic cycle of “experience optimization of all touchpoints ? value network expansion ? competitive advantage realization”, with the boosting logic of data network effects behind. Specifically, according to the data network effects theory, start, expansion, and reinforcement three phases can be respectively refined as “scene matching”, “connection synergy”, and “value-adding efficiency”, the boosting logic of data network effects theory behind the construction of data-driven new retail business model loop can be realized through the dynamic cycle of “scene matching ? connection synergy ? value-adding efficiency”. The final theoretical model built in this paper can not only contribute to the existing research gaps on the loop innovation of data-driven business model and new retail business model, but also expand data network effects by its theoretical boundary and research context.

Coffee Shop New Retail Business Model

New retail is an innovative business model combining online and offline (O2O) shopping experiences (Alibaba Gorup, 2018) and is discovering how to adapt to the digital transformation. Several factors that could affect consumer experience when shopping online include ease of accessing and using the web, Hedonic and Utilitarian Features, Convenience, personalization, social interaction, and compatibility on various devices. The study aims to measure the relationship between the new retail business model dimension: customer, convenience, and communication to customer experience. This research identifies the factors that influence the customer experience in the new retail business model; three hypotheses were built in this study, then tested. The quantitative approach uses a partial least square (PLS) application to obtain the data and measure the impact of each dimension on the new retail concept. The population in this study is Starbucks consumers who have used all online-offline channels and are living in Bandung West Java. Based on the research objectives, the conclusion from the research results is the establishment of a model that represents the relationship between consumer variables, convenience, communication, and customer experience. Based on the model validation results, consumers and communication are the factors that influence the customer experience in coffee shops online and offline in the new retail concept. The communication variable is the most significant variable that directly affects the customer experience.