Gerrit Heinemann
Christoph Schwarzl
New Online Retailing
Innovation and Transformation
Table of Contents
Foreword VII Abbreviations XV
1 Online Retailing in Transition - Revolution not Evolution 1
1.1 The New Generation of Online Retail 1 1.2 Private Consumption Growing Online 4 1.3 Untapped Potential in Online Retailing 6 1.4 Efficient Starting Time for Online Retailing 9 1.5 The Internet's Underlying Influence on Buyer Behaviour 11 1.6 Digital Natives on the March 16 1.7 Fast Broadband Networks Drive Online Growth 17
2 New Online Retailing - What Does It Mean? 19
2.1 Basic Principles of New Online Retailing 19 2.1.1 Technological Principles of Online Retailing 19 2.1.2 Media-Specific Fundamentals 25 2.1.3 Company-Specific Groundwork for Online Commerce 27 2.2 Special Features of New Online Retail 29 2.2.1 Online Commerce as a Form of Distance Trade 29 2.2.2 Core Competencies and Capabilities in Online Commerce 30 2.2.3 Business Systems in New Online Retail 33 2.3 Marketing and Sales Policy in New Online Retail 35 2.3.1 Product Line Policy in Online Selling 35 2.3.2 Price Policy in Online Selling 38 2.3.3 Selling and Distribution Policy in Online Trade 39
2.3.4 Communication Policy in Online Retailing 42 2.4 CRM as a Basic Instrument of New Online Retailing 45 2.4.1 CRM Standard Strategies in Online Commerce 47 2.4.2 Customer Loyalty in Online Selling 48 2.4.3 Acquiring New Customers in Online Commerce 55 2.4.4 Customer Conversion in Online Commerce 59 2.4.5 Cutting off Customers in Online Commerce 62 2.4.6 Cost-Effectiveness of CRM in Online Commerce 65 2.5 Forms of New Online Retailing 66 2.5.1 Pure Online Commerce 67 2.5.2 Cooperative Online Commerce 68 2.5.3 Multi-Channel Retailing 69 2.5.4 Hybrid Online Retailing 70 2.5.5 Vertical Online Retailing 73 2.6 Mobile Shopping and New Online Retailing 75 2.6.1 Status of M-Shopping 76 2.6.2 Fundamentals and Limitations of M-Shopping 77 2.6.3 Technical Fundamentals of M-Shopping 78 2.6.4 M-Shopping Product Suitability for Fashion 80 2.6.5 M-Shopping Prospects 83 2.7 Innovation: From Retail to Me-tail 84 2.7.1 Role of Stores Will Change Dramatically 85 2.7.2 Consumers Will Demand Real Multi-Channel Retailing 86 2.7.3 "Fast Fashion" Will Be the De Facto Industry Standard 87 2.7.4 Supply Chains Will Be Optimised Along the Product's Total Life Cycle 88 2.7.5 Consumers Themselves Will Help Form the Communities of Talent 88 2.8 Transformation: Roadmap for Success 89
3 Eight Success Factors in New Online Retailing 92
3.1 Determining Success Factors in Online Commerce 92 3.2 Shop Appeal and Selling Proposition as Success Factor No. 1 95 3.2.1 Attraction Marketing and Customer Value Orientation 95 3.2.2 Killer Differentiators 97 3.2.3 Multimedia Presentation and Multidimensionality 99 3.2.4 E-Branding, E-Brand USP und E-Brand Pull 101 3.2.5 External Promotion of E-Store Brands 107 3.3 Social Targeting and Societing as Success Factor No. 2 108 3.3.1 Online Market Segmentation and Target Marketing 109 3.3.2 Integrated Community Marketing 110 3.3.3 Community-Based Brand Leadership 114 3.3.4 Consumer-Generated Advertising 116 3.3.5 Linking Value 117 3.4 Service and Search Solutions as Success Factor No. 3 119 3.4.1 Eye Tracking Optimised Web Usability 120 3.4.2 Navigation, Selection and Evaluation Help 121 3.4.3 Service-Oriented Dialogue Elements 126 3.4.4 Self-Service Functionalities 128 3.4.5 Pre- and Post-Sales Services 130 3.4.6 Customer Feedback 131 3.5 Singularity Customisation and Personalisation as Success Factor No. 4 134 3.5.1 One-to-One Marketing 134 3.5.2 Individualised Offers 136 3.5.3 Personalised Consultation and Presentation 138 3.5.4 Mass Customisation 140 3.5.5 Open Innovation 144 3.6 System and Supply Chain Excellence as Success Factor No. 5 146 3.6.1 Complexity Performance 146
3.6.2 Acceleration and Cycle Time Reduction 148 3.6.3 Strategic IT Deployment 150 3.6.4 Automation 151 3.7 Security Standards and Reputation as Success Factor No. 6 152 3.7.1 Risk Perception in Online Commerce 153 3.7.2 Payment Security and Flexibility 155 3.7.3 Data Security and Protection 157 3.7.4 Following Basic Legal Conditions 158 3.7.5 Security Regarding General Terms and Conditions 159 3.8 Supplementary and Support Channel Strategy as Success Factor No. 7 161 3.8.1 The Channel Hopping Option as Customer Added Value 163 3.8.2 Internet as Lead Channel with Additional Brick and Mortar Channels.. 166 3.8.3 Integrated Multi-Channel Systems 167 3.8.4 Comparison of Channel Attributes 171 3.9 Sourcing Concept and Strategic Alliances as Success Factor No. 8 173 3.9.1 Global Sourcing 176 3.9.2 E-Sourcing 178 3.9.3 Outsourcing 181 3.9.4 Strategic and Virtual Partnerships 183
4 Best Practices in New Online Retailing 187
4.1 Success Stories in New Online Retailing 187 4.1.1 Best Practices in Pure Online Retailing 187 4.1.2 Best Practices in Cooperative Online Commerce 192 4.1.3 Best Practices in Multi-Channel Retailing 195 4.1.4 Best Practices in Hybrid Online Commerce 199 4.1.5 Best Practices in Vertical Online Commerce 200 4.2 Examples of Successful Online Management 202 4.2.1 Best Practices in Front-Office Functions 202 4.2.2 Best Practices in Back-Office Functions and Supply Chains 205
4.3 Lessons Learned - 20 Rules for New Online Retail 208
5 Risks and Benefits of New Online Retailing 210
5.1 Risks and Benefits of Pure Online Commerce 210 5.1.1 Risks and Benefits from an Online Retail Perspective 211 5.1.2 Risks and Benefits from an Online Customer Perspective 212 5.2 Risks and Benefits of Multi-Channel Retail 215 5.2.1 Risks and Benefits from a Multi-Channel Retail Perspective 215 5.2.2 Risks and Benefits from a Multi-Channel Customer Perspective 220 5.3 Risks of Non-Compliance with German Civil Law in Online Commerce 222 5.3.1 New Revocation Regulation 222 5.3.2 Regulations for Product Individualisation 222 5.3.3 Comparison of Vendors 224 5.4 Further Prospects: Cross-Channel Management and Integration 225
References 233 Index 259
