Retail Business Model Research Articles

Development of business architecture of the banking sector based on public-private partnership

The purpose of the paper is to identify promising areas of business architecture of the banking sector of Ukraine’s economy based on public-private partnerships. Business architecture integrates risks due to the predominance in a certain period of development of the banking sector of different business models. Its development should involve the subordination of private interests of the banking business to national and public needs to achieve economic growth. Such a public-private partnership should become an institutional tool for the formation and functioning of a business architecture, based on socially responsible banking.Development directions of business architecture of the Ukrainian banking sector based on public-private partnership are determined by the results of correlation and regression assessment of the impact of business architecture on economic growth in 2015–2020.The generalization of the effects on gross investment and gross consumption allows identifying the following areas for targeted changes in business architecture of the banking sector in Ukraine’s economy: 1) reducing the lending activity of banks with retail, corporate, and universal business models; 2) incitement the lending activity of banks with a corporate business model with retail financing and a business model of limited credit intermediation.The paper substantiates the feasibility of transition to mesoprudential banking regulation and supervision. The main priority of this approach is to reduce systemic risks, which is determined by the propensity for similar risks within groups of financial institutions with the same business models.

A multi-objective mathematical model of financial flows in Omni-Channel distribution systems

Nowadays, companies and financial institutions have different strategies and priorities aligned with their financial goals and digital maturity; however, they rapidly make efforts to meet customers’ ever-changing expectations. One of the technologies that can meet the needs and expectations of customers faster and more accurately is the Omni-channel distribution system. Within this system, a set of distribution channels is defined. In addition to increasing the level of service and customer satisfaction, the amount of product demand and sales increases, resulting in more revenue and profit. The present study aimed to design a mathematical multi-objective Mixed Integer Linear Programming (MOMILP) model to investigate the relationship between different components of an Omni-Channel system and an innovative retail business model in the form of a financial approach for the optimization of profitability. In order to confirm the accuracy of the proposed mathematical model, numerical experiments were carried out using near-reality data based on an integration of Non-Dominated Sorting Genetic Algorithm II (NSGA-II) and Red Deer Algorithm (RDA). To solve the problem, the input parameters of this algorithm and mathematical model were provided in the form of problems with three sizes: small, medium, and large. The problem with the small size provided a fast and highly precise optimized response.

Digitalization driven retail business model innovation: Evaluation of past and avenues for future research trends

Increased digitalization enabled innovation and practical examples from the retail industry have captured the attention of marketing scholars, with rapid development in the academic field. The pace of change has significantly accelerated during the Covid-19 crisis. In seeking to (1) investigate the unique characteristics of digitalization enabled retail business model innovation, (2) understand how does digitalization influences changes to the retail business model innovation dimensions, and (3) identify the areas for future research related to retail business model innovation, this study systematically reviews the literature. Employing four databases, a sample of 170 articles were chosen. Based on bibliometric and network analysis and visualization, the major researchers, articles, and topics were rigorously identified. Finally, the results revealed the unaddressed issues in this research area. The study ends with theoretical and managerial implications.

Towards Formalization of Analytical Approaches to Tackle Issues of Retail Business Models:

Towards Formalization of Analytical Approaches to Tackle Issues of Retail Business Models:

Neuromanagement decision making in facial recognition biometric authentication as a mobile payment technology in retail, restaurant, and hotel business models

Research background: With growing evidence of biometric identification techniques as authentication, there is a pivotal need for comprehending contactless payments by use of facial recognition algorithms in retail, restaurant, and hotel business models. Purpose of the article: In this research, previous findings were cumulated showing that harnessing facial recognition payment applications as software-based contactless biometric algorithms results in remarkably qualitative enhancement in purchasing experience. Methods: Throughout March and November 2021, a quantitative literature review of the Web of Science, Scopus, and ProQuest databases was carried out, with search terms including "facial recognition payment technology", "facial recognition payment system", "facial recognition payment application", "face recognition-based payment service", "facial authentication for mobile payment transactions", and "contactless payment through facial recognition algorithms". As the analyzed research was published between 2017 and 2021, only 187 articles satisfied the eligibility criteria. By removing questionable or unclear findings (limited/nonessential data), results unsubstantiated by replication, too general content, or having quite similar titles, 38, mainly empirical, sources were selected. The Systematic Review Data Repository was harnessed, a software program for the gathering, processing, and analysis of data for our systematic review. The quality of the selected scholarly sources was assessed by employing the Mixed Method Appraisal Tool. Findings & value added: Harnessing facial recognition payment applications as software-based contactless biometric algorithms results in remarkably qualitative enhancement in purchasing experience. Subsequent attention should be directed to whether perceived value and trust shape customers? adoption of biometric recognition payment devices.

A Qualitative Study on Innovation and Dimensional Aspects of the Omnichannel Retail Business Model

The purpose of the study is to elucidate linkage of Omnichannel retail business model with innovation and technological advancements. The study is exploratory and qualitative in nature, based on primary and secondary data sources collected from varied retail sectors such as fashion, furniture, eyecare and electronics . The study has used Business Model Canvass (BMC) as a tool for strategic analysis. The study presents findings about business model and strategies in Omnichannel context from Indian retailers. The findings of the study posits four main dimensions resultant of digitalization and technological advancements in Omnichannel retail, namely Omnichannel Intensity, Organizational Structure Integration, Operations and Supply Chain Management Innovation, Data Analytics and Intelligence. Cross-channel Integration and Data Analytics & Intelligence have been found to be contributing enormously towards the strategic growth of Omnichannel retailers, thus emerging as the prominent managerial implications of the study.

Identifying Insurance Companies’ Business Models in Ukraine: Cluster Analysis and Machine Learning

This study examines the performance of the nonlife insurance companies that operated in Ukraine in 2019– 2020. Specifically, we employ a set of clustering techniques, e.g. the classic k-means algorithm and Kohonen self-organizing maps, to investigate the characteristics of the Retail, Corporate, Universal (represented by two clusters), and Reinsurance business models. The clustering is validated with classic indicators and a migration ratio, which ensures the stability of the clusters over time. We analyze the migration of companies between the identified clusters (changes in business model) during the research period and find significant migration between the Reinsurance and Corporate models, and within the Universal model. Analysis of the data on the terminatio of the insurers’ ongoing activity allows us to conclude that companies following the Universal business model appear to be the most financially stable, while their peers grouped into the Reinsurance cluster are likely to be the least stable. The findings of this research will be valuable for insurance supervision and have considerable policy implications.

Increasing Customer Satisfaction through Omnichannel Retailing

Customer satisfaction is one of the success factors for many retailers. With the widespread use of smartphones worldwide, retailers have adopted many new innovative and disruptive retail business models. Digitalization brings retail business into a new era and has profoundly and positively affected the business' strategy. Retailers strive to provide customers with an easy, smooth, happy, joyful, and relaxed shopping experience. One of the disruptive digital innovations in retailing is Omnichannel Retailing. The ideas are to rejuvenate, revitalize, and increase customer satisfaction during their shopping journey either at the store (offline) or through online shopping platforms. The customer shopping experience is enhanced by providing channels and touchpoints that are emerged during their shopping journey. The objective of this study is to review the customer relationship literature within the context of the omnichannel retailing perspective. This study proposes a conceptual model to understand the factors that increase customer satisfaction through omnichannel retailing.

The study of local beef market structure in Jakarta, Indonesia

This study was implemented to determine benefit distribution from the value chain and analyze Jakarta’s local beef market’s price determination processes. The research method was a survey, and a purposive sampling technique was used to select key informants. A structured questionnaire was designed to collect the data supplemented with focus group discussion. Data were analyzed using descriptive quantitative statistics. The descriptive statistics revealed a market structure based on the elements to have many consumers and suppliers with ex-imported cattle (98 percent) and local cattle from East Nusa Tenggara and East Java (2 percent) fulfilled the demand in a year. Middlemen in the supply chain have more significant benefits than producers (feedlots and farmers) and consumers. The implication of the study is developing a business model for modern retail or butchering-based meat shops that increases the added value of local meat and benchmarking of a long beef chain efficiency at post-cutting (downstream). The development of a modern retail business model is expected to drive the shifting system sales of beef from a commodity to a product basis.

Optimal dynamic allocation of rental and sales inventory for fashion apparel products

There is a growing trend towards renting rather than permanent ownership of various product categories such as designer clothes and accessories. In this article, we study an emerging retail business model that simultaneously serves rental and sales markets. Specifically, we consider a retailer that primarily focuses on renting while also selectively meeting incidental sales demand. Once a unit is sold, the firm forgoes potentially recurring rental revenues from that unit during the remaining periods. Therefore, it is critical for a retailer to dynamically decide how much of its inventory to allocate for sales and rentals at each period. We first develop a consumer choice model that determines the fraction of the market that chooses renting over purchasing. We characterize the optimal inventory allocation policy and explore how market characteristics and prices impact inventory allocation. We discuss the value of dynamic allocation and observe that the profit improvement can be substantial. In addition, we propose a simple and efficient heuristic policy. Finally, we extend our analysis to study the optimal allocation policies for (i) a retailer that is primarily a seller that selectively meets rental demand, and (ii) a retailer that does not enforce any prioritization between rental and sales demand.

Exploring the impact of technological disruptions in the automotive retail: A futures studies and systems thinking approach based on causal layered analysis and causal loop diagram

This paper investigates the complex mechanism and the impact of the "CASE" (Connected, Autonomous, Shared, and Electrification) technological disruptions on the automotive retail industry. A focus group in South Korea, consisting of industry stakeholders and experts, conducted two workshops. Causal Layered Analysis, a futures studies theory/methodology, was adopted to formulate the overall system's Causal Loop Diagram, a systems thinking methodology, to present the dynamic behaviors and sets of causations in the entire system. The result indicates that disruptive technologies affect the traditional automotive retail business model. However, it was found that strategic leverages create alternatives and desirable "new" reality turning the technology's risks into opportunities through backcasting. The study suggests a significant theoretical value by presenting a new qualitative research framework that synthesizes futures studies and systems thinking approaches, maximizing their potential. A systematic framework-based business foresight process should be emphasized for organizations to survive in a rapidly changing environment.

Kewirausahaan Berbasis Kearifan Lokal Sebagai Strategi Model Bisnis Ritel

This study aims to find out the implementation of retail business model strategy in form of entrepreneurship activities based on local wisdom, along with the challenges to implement it. The objects of this study is Pelanusa Community; a business community in Malang City that implements a retail business model based on local wisdom. A qualitative approach with data collection techniques through semi-structured in-depth interviews, non-participant observation, and documentation were used. The informants were selected purposively. The results of the study show that creativity and product innovation that accentuates local culture is the strength of Pelanusa Community to produce final product that has value proposition. This strength is supported by training activities that enhance technical and managerial skills. Strict quality control is also an important element to maintain product quality. However, Pelanusa Community faces challenges in terms of production scale to implement the strategy for its retail business model.

Retail post-COVID growth strategy – is omni channel the way?

Learning outcomes To enable the students to appreciate the importance of the retail business environment and identification of opportunities set in the context of an emerging market. To make students understand how a value proposition (product) is crafted in a retail organisation. To introduce the technique of developing a service blueprint for designing the retail consumption experience. To induce students to analyse on what criteria should retail business models be evaluated. To introduce the students to the concept of omnichannel retail strategy. Case overview/synopsis The case is about a value-retail chain We Mart India facing the sudden lockdown situation in April 2020 because of the Covid-19 pandemic hitting India. Shailesh Mehta, the Chief Operating Officer of We Mart is wondering what he should do post the lockdown to bring back the retail chain to its pre-Covid fast-paced growth of 25% YOY in June 2019. We Mart focussed on physical stores as a part of its strategy with an emphasis on the in-store experience. The company catered to the aspirations in fashion for the youth through a series of fashion apparel and accessories in Tiers 2 and 3 cities. The company had grown successfully in two decades and had expansion plans for 2020, which now seemed hazy because of this unpredicted biological disruption impacting businesses. Mehta’s worries were intensified by the change in the consumer trend that was witnessing a shift from offline to online. He wondered about how to incorporate this change and also realign the corporate growth plans in amidst of a challenging situation. To add to his woes were thoughts about established competitors online already apart from the existing offline ones. Research methods: This case is based on primary and secondary data gathered through interviews and publicly available secondary sources. The name of the company and protagonist have been disguised. Complexity academic level The case is suitable for post-graduate (masters in buisness administration) level courses on retail management. The length of the case enables the participants to even read in the class. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 8: Marketing

A Feasibility Study of Urban Underground Logistics System -- A Case Study of Shanghai

With rapid development of e-commerce, new retail and other new Internet business models, the requirements of the higher package handling efficiency and lower delivery cost are put forward in logistics industry. However, due to the lack of logistics facilities, the limitation of ground roads and the land use, the service of express delivery cannot satisfy the logistics demand, which makes the express delivery a “bottleneck” that restricts the development of urban logistics. Underground Logistics System (ULS) can be a new way to handle it. ULS refers to a logistics system which uses specific vehicles to realize the seamless connection of automatic loading, unloading, transportation, sorting and delivery of goods in the underground based on information technology. Firstly, we have studied ULS and explored its system architecture and advantages. Then, we have combined it with Shanghai Master Plan 2017-2035 and its express facilities planning, and provided a forecast of the express delivery demands in Shanghai in 2035. Based on the findings, we have proven the necessity of ULS corridors in the city. It is likely that the increase of logistics demand will bring about some urban problems such as traffic congestion, environmental pollution and resource waste, if no timely action is taken. As a new mode of urban express delivery, ULS can reduce the above negative effects and promote the sustainable development of the city.

Research on the New Retail Business Model from the Financial Perspective

Through the construction of the business model canvas, the new retail business model is financially analyzed, and based on this, it is concluded that there are still some shortcomings in the implementation of the new retail business model. At the end of this article, the corresponding flaws in the performance of the new retail business model are proposed. There are suggestions for improvement.

Бізнес-моделі та сучасні інструменти підвищення ефективності підприємств роздрібної торгівлі

The article is aimed at examining the main components of retail business models, to determine the probable directions in which these models can develop, as well as identifying the factors and tendencies that form the business models used by retail trade enterprises. The current status of retail trade, innovations and changes to the business models of evolutionary nature are analyzed. The need to implement new solutions for store formats, cooperation of distribution channels, changes in the range of products and services offered, as well as the use of machine learning for effective management of retail business is substantiated. Based on observations on the activities of modern retail enterprises, it can be stated that changes that occur in the business environment lead to the need to find and implement effective ways to gain competitive advantages through the use of new business models. The article consistently covers the nature and components of the retail business model, business model development issues, analysis of both external and internal factors that determine changes in business models, as well as defines trends and examples of innovative solutions in the formation of models for retail trade business. It is concluded that in the changing conditions of today, retailers need to constantly modify the business models used and improve the processes associated with the implementation of basic business functions, such as procurement, warehousing, sales and customer service.

Factor affecting user satisfaction in agricultural e-commerce applications: Facing the new normal

Agricultural E-Commerce with a retail business model has a big challenge to become an alternative sales distribution of agricultural products. Consumer satisfaction and loyalty can be a strategy for companies to maintain and increase sales. The purpose of this study was to analyze the users of agricultural e-commerce application characteristics and variables that affect customer satisfaction and loyalty. It was conducted by a survey in the Greater Jakarta area, Indonesia. Research data were collected using a questionnaire with a convenience sampling method to 170 respondents. The majorities of respondents were women with an age range of 20-30 years. Structural Equation Modeling (SEM) results show that there is a significant influence between information quality, design, response, security, delivery on satisfaction, and satisfaction with loyalty. On the other hand, there is no significant difference between ability, payment, user service, and satisfaction. Companies can create loyalty programs to increase product purchase retention in agricultural e-commerce.

Research on the influence of compensation methods and customer sentiment on service recovery effect

With the development of Internet technology, online retailing has become a part of people's life, but there is still a lack of research on the service recovery of online retail. This study adopts the scenario experiment method to conduct an empirical study. The service recovery scenario is designed as 2 × 2, the subjects are required to choose a most similar scene and fill in the questionnaire according to their own service recovery experience of online shopping service. This study discusses the influence mechanism of compensation methods and customer sentiment on service recovery effect in online retail service recovery situation. The results show as follows: compared with utilitarian compensation, spiritual compensation has a greater positive impact on customer positive emotions, and spiritual compensation is more effective in reducing negative emotions; positive and negative emotions of customers have positive and negative effects on customer satisfaction after service recovery, and customer satisfaction after service recovery is the preparation and prelude to the formation of customer loyalty. The research results can provide a reference for online retailers to formulate feasible and effective service recovery strategies, improve the effect of service recovery, and promote the healthy development of online retail business model.

TRADITIONAL RETAIL BUSINESS DEVELOPMENT MODEL IN THE NORTHEAST REGION ALONG THE BORDER OF THAILAND

The objectives of this research were to: firstly, study the level of satisfaction in purchasing products, product quality, service quality, and money value of consumers in the traditional retail businesses in the northeast region along the border of Thailand, secondly, study the influence of variables affecting the success of traditional retail businesses in the northeast region along the border of Thailand, and thirdly, develop the traditional retail business model in the northeast region along the border of Thailand. The samples consisted of 380 people living in 7 provinces along the border of Thailand, which were Loei province, Nong Khai province, Bueng Kan province, Mukdahan province, and Amnat Charoen province; collected 54 people each, and Nakhon Phanom province and Ubon Ratchathani province; collected 55 people each. The research results indicated that the consumers’ opinions towards satisfaction in purchasing products, product quality, service quality, and the value for money of consumer's perspectives were rated at a high level. In addition, factors including purchasing satisfaction, product quality, quality of service, and value for money affected the success of traditional retail businesses. Lastly, the traditional retail business model in the northeast region along the border of Thailand should focus on product quality, value for money, purchasing satisfaction, and service quality.

RETAIL BUSINESS MODELS: ADAPTATION TO NEW CHALLENGES

Background. The retail sector in Ukraine is in crisis due to COVID-19. New risks and challenges have emerged that have put at risk the functioning of the trading industry. Therefore, there is a need to find ways to adapt and transform business models in retail to new, crisis conditions. Analysis of recent researches and publications. Peculiarities of trade business functio­ning in conditions of uncertainty, risks, and crises are actively studied by many scientists and practitioners. However, the issue of changing retail business models in the face of instability, which would allow companies to adapt to today’s challenges, remains insufficiently studied. The aim of the article is to study the process of transformation and adaptation of business models in retail to new economic realities, challenges, and threats associated with the situation around COVID-19. Materials and methods. The information base of this study was scientific work on the adaptation of business to modern conditions of instability and rapid change. The research methodology is based on a system of general scientific and special methods, in particular: analy­sis and synthesis; systematic and integrated approach. Results. The peculiarities of the instability of the modern world according to the VUCA concept, in particular its manifestations related to the COVID-19 pandemic, have been studied. The main threats to business development in the field of retail trade in the current crisis situation have been identified. Changes in business models in retail are proposed, which will help in adapting to difficult economic conditions and maintaining the competitiveness of retail enterprises in the consumer goods market. Conclusion. The necessity of transformational changes of business models in retail in order to adapt them to crisis conditions and ensure the survival of retail enterprises in today’s unstable world is proved.