A commentary on various aspects of multichannel retailing. The article presents an approach for retailers strategizing integration of their retail channels.

1. technology
the various Channels in
retail are nothing but
a series of touch points
where a retailer interacts
with his customer base for
providing sales and service
and receiving feedback. The
Stores, internet, mobile
phones, catalogues, kiosks,
and tele-shopping are all
channels to a retailer.
Multiple retail channels
not only extend a retailer’s
reach and presence in a
market, but also provide
friendly ways to service a
customer
By Shijo Sunny Thomas
Multi-Channel Retailing: needs can be fulfilled from the
most optimum channel. Omni-
channel service will involve highly
The Way Forward
personalised and intuitive marketing
based on customer history, location
or even the device that the customer
is using to interact with the retailer.
Mentioning omni-channel to a retailer
Scan a QR code from a catalog, then it is time that one should pause today can have two possible effects: it
check and reserve the product online, to hear the buzzword bandwagon. could either be aspirational or can be
pick it up from the nearest store, and Multi-channel is simply operating dismissed as a buzzword.
call tele-service for installation. If multiple customer touch points. Retailers venturing into establishing
you are still feeling glad about the In many cases, these touch points or maturing their multi-channel
experience, hit the “Like” button function in silos and the customer operations should realise that they are
on the retailer’s social media page is aware of the aspect that these laying the foundations for the next
and receive a voucher for your next channels operate independently. level. These foundations are not solely
purchase. The retailer is increasingly Multi-channel is what it means about technology to bind channels
recognising the customer and her literally – operating multiple channels. together. To build a phenomenal
needs and requirements irrespective The next step towards maturity is competitive advantage in multi-
of the location and media that she to enable cross-channel retail through channel retail, retailers need to build
is using to shop or interact. The presenting an integrated brand image, a cohesive strategy comprising of the
customer is getting popular. In fact, availability and service across all operational model, business process
every customer is getting popular. channels. This integration is highly clarity, channel positioning, integrated
The question that many would critical for success and requires a deep systems and customer centricity.
ask is, are channels supplementary amalgamation of technology, business This is not an easy task knowing
or complementary to each other? process, and operational maturity. that all the channels will not be
Multiple retail channels not only The next level of maturity is raised from the ground at the same
extend a retailer’s reach and presence omni-channel retail where the time for most retailers. Brick and
in a market, but also provide friendly traditional barriers across channels mortar retailers, who have been
ways to service a customer. do not exist. A customer will have operating for multiple years, would
If everyone thought that multi- uninhibited view of the availability have matured in terms of business
channel was the holy grail of retail, across all channels and the customer’s practices, merchandise offerings,
104 . images retail . November 2012

2. technology
pricing mechanisms and supply Maintaining product availability to derive insights on the customer
chain. To avoid the risks of adding across multiple channels is a interactions. These are further
and integrating another channel to significant task for any retailer. used for formulating creative and
the existing model, retailers often To ensure that availability in one personalised pricing, promotion and
establish subsequent channels as channel does not happen at the cost loyalty programmes. Customer data
a separate entity. These individual of another, a retailer needs to master is the cornerstone for retail business
entities will have their own optimal and accurate juggling of decisions and a springboard to success
merchandise management, fulfillment available inventory across stores and for any multi-channel retailer.
and distribution strategy. e-commerce channels. Often, store In addition to the business function
To add to these, multiple systems inventory requires to be consolidated integration across products and
functioning in silos are implemented for e-commerce fulfillment or customers, a shift in organisation
with limited integration, possibly vice-versa. Merchandisers should culture is also warranted for multi-
only for product information. As both harness the use of technology to channel success. An organisation-wide
these channels begin to function in appropriately guide replenishment and sensitisation is required to educate the
parallel, the retailer incurs supply consolidation across multiple channels customer-facing employees across all
chain and merchandise inefficiencies to ensure inventory performance, channels to nuances of multi-channel
in inventory holding, fulfillment and maximised margins and consistent retail.
performance measurement. Some also service levels. Employees at the store should be
end up cannibalizing and creating trained to handle customers who
confusion in the customer’s mind. have compared products and prices
The operational and business online and have come to the store
process transformation and integration Multi-channel retail for a demonstration, product feel and
model in multi-channel retail service information. In many cases,
should be centered on products and
requires an integrated these customers will be more aware of
customers. Creating, maintaining and strategy to provide a the product features and latest prices
accessing consistent merchandise convenient customer than the store employees. Conversely,
hierarchy and product information experience across all there will also be customers who have
across all channels should be phases of a customer’s arrived at the store to experience the
viewed as one of the top priorities. product and then buy the product
This ensures that both the initial
shopping life cycle from the most economical location
merchandise planning, execution If creating an integrated product online. At every point of the customer
and downstream operations can be and supply chain backbone sounds interaction, the retail organisation
performed, reviewed and analysed challenging, then managing customer should introduce and promote the
in an integrated manner. The retailer expectations across channels is no other channels as well.
can clearly devise merchandise roles, mean feat either. The process of Multi-channel retail is an
assortments and allocation towards creating a unified customer experience evolutionary process that requires a
each of the channels in which the across all channels begins with decisive and step-by-step approach.
products are to be offered. This also the effective capture of customer Retailers in India are aggressively
helps in creating a single view of information. Irrespective of the gearing up for meeting the needs of
product information, pricing and channel used by the customer to an increasingly technology savvy
promotions for the customers as well. connect with the retailer, all customer population which is going to drive the
Retailers operating in both store and information should be funneled into next wave of retail. A lot of this retail
e-commerce models can reap immense a single repository. Any subsequent demand is going to be fuelled from
benefits by devising a comprehensive customer interaction across any both established and upcoming urban
supply chain model. The design channel can be driven into this centres. Catering to these dynamics
should provide for a credible and repository and mapped to a specific require an integrated strategy to
integrated supply chain model which customer. For any multi-channel provide a convenient customer
looks at managing customer orders, retailer, this customer information experience across all phases of a
consolidating inventory across repository is sacred and a treasure customer’s shopping life cycle.
locations and fulfilling the orders trove to reap multi-channel benefits.
through effective and visible logistics. The customer repository is a
In many cases, it becomes single-point reference to all customer
imperative to integrate fulfillment and transaction history, feedback, product ABOUT THE AUTHOR
inventory processes with third party interactions, channel interactions, Shijo Sunny Thomas is the
distribution and logistics providers. stored value balances and every industry lead–Retail & CPG at
Fujitsu Consulting India. He has
These need to be further integrated other transaction that a customer
worked extensively in advisory
with the customer-facing functions would have had with a given retailer. and operational roles with
in each channel to provide accurate Retailers are gaining significant medium to large cross-channel
order and service status. maturity in harnessing this data retailers
November 2012 . images retail . 105