MSG Team's other articles

11700 Different Types of Sales Professionals/People

A sales professional in a workplace is responsible for meeting the sales targets of the organization and maintaining relationship with the existing and potential clients. He plays a central role in generating revenues for the organization. Following are the types of sales people in organizations: The Diplomat As the name suggests, a diplomat is one […]

12511 Brand Management – Meaning and Important Concepts

Brand management is the process of developing, maintaining, and improving a business’ identity, reputation, and overall perception among its target audience. It involves creating a cohesive brand image that resonates with customers and differentiates your business from competitors. When managing your business’ brand, you have to consider the look of your logo, the tone of […]

8823 What is a Market – Definition and Different types of Markets

A set up where two or more parties engage in exchange of goods, services and information is called a market. Ideally a market is a place where two or more parties are involved in buying and selling. The two parties involved in a transaction are called seller and buyer. The seller sells goods and services […]

12882 Consumer Communication and Persuasion

Consumer communication and persuasion is an essential part of any Marketing Strategy. In fact, it is the starting point of all improvement as consumer voices provide companies with the data such as where they are lacking and what all they could do to improve the product or service. Do all companies listen to the consumer […]

12509 What is Brand Loyalty and How to Develop It

Brand Loyalty is a scenario where the consumer fears purchasing and consuming product from another brand which he does not trust. It is measured through methods like word of mouth publicity, repetitive buying, price sensitivity, commitment, brand trust, customer satisfaction, etc. Brand loyalty is the extent to which a consumer constantly buys the same brand […]

Search with tags

  • No tags available.

E commerce is fast growing to be an important channel of sales for Retail Companies. Though the volumes of online shopping may be miniscule when compared to the traditional sales channel, still the importance of being present and providing a Website for online shopping is something that no Retail Company can afford to ignore.

The fact that the traditional sales channel and e commerce sales channel are different in terms of their intrinsic characteristics, the retail business strategies for both channels have to be devised separately. The consumer behaviour as well as the process of transaction varies between the two modes. The Management experts advise three different approaches to positioning of the Retail Companies in E Environment.

Variety Based Positioning is followed by firms that generally invest in covering speciality or exclusive line of products. The product depth and variety offered in such exclusive coverage is exhaustive leaving no chance for the Customers to look at another source. Speciality Wines from Majestic Wines UK and other similar online websites for cigars, silverware etc are good examples of Retail Companies positioning in E Commerce.

Quite a few retail companies choose to specialise in catering to select customer group and build their online marketing to suite the niche segment. Companies like Levis, Department Store like Selfridges & Co as well as the exclusive boutique stores position their websites to attract the affluent and young crowds. The visuals and the website content is built to suit the taste and culture of the chosen segment.

Some of the Retail Companies choose to promote different store formats and make them available to customers to choose as per their need. Companies like Tesco have floated different formats like Extra, Metro Express as well as Tesco Online, thus ensuring that no Customer segment is ignored. The customer can choose whatever mode the Customer feels comfortable.

Positioning oneself in the online shopping category is not only limited to the Company’s internal positioning strategy, but is also affected by the external environment in terms of competition as well as the evolution of web technology. Some of the pure plug and play retail companies that sell only through the internet choose to provide price comparison on their site or provide link to other sites where the customers can compare products and prices. As in the case of automotive market, retailing industry too will evolve wherein online intermediaries will start hosting exchange portals offering all the retail companies-all products online and letting the customer make his choices.

As E Competition begins to evolve we see Retail Companies having to bundle their products with related services too and offer the total package to the Customers, forcing the Companies to tie up with third party service providers and other virtual companies offering complimentary services.

E Commerce positioning strategy planning in the Retail Company calls for understanding not only the market trend, but to understand the Customer’s buying behaviour as well as the futuristic trends in terms of technology. In future no Retail Company can afford to stand alone and sell its products. As the technology evolves, they will be forced to partner with many others either to provide end to end online sales and financial transactions as well as to provide complete and complimentary services to the Customers. The E trends and Markets change rapidly, leaving the Retail Company’s no time to adapt to the new trends and lead the race. To survive in E Trade calls for building competence in Systems and technology areas too.

Article Written by

MSG Team

An insightful writer passionate about sharing expertise, trends, and tips, dedicated to inspiring and informing readers through engaging and thoughtful content.

Leave a reply

Your email address will not be published. Required fields are marked *

Related Articles

International Retail Store Design Principles – The Principle of Totality

MSG Team

Retail Fashion Industry and Youth

MSG Team

Retail Fashion Advertising for Youth

MSG Team