Which 3PL does Birchbox use

1A location vs. online. Future strategies in retail

Table of Contents

II. List of Figures

III. List of tables

IV. List of Abbreviations

1 Introduction
1.1 Problem definition and objective of the work
1.2 Structure of the thesis

2 Presentation and investigation of the situation in stationary retail
2.1 Modern developments in stationary retail
2.2 Challenges of stationary retail
2.2.1 Threat from verticalization of sales channels
2.2.2 Threat from changes in the cost structure
2.2.3 Threat from changed consumer behavior
2.2.4 Other challenges for stationary retail

3 Online retail as a challenge for stationary retail in prime locations
3.1 Types of sales in online trading
3.1.1 Single channeling
3.1.2 Pure online trading
3.1.3 Community Driven Shopping
3.1.4 Collective Buying
3.1.5 Subscriptions
3.1.6 Mobile commerce
3.2 Further current developments in online trading
3.3 Interim conclusion: where does the trend towards online trading come from

4 Investigation of the retail situation in downtown Hamburg
4.1 Retail locations in Hamburg
4.2 Hamburg city center as a retail location
4.3 Building fabric in downtown Hamburg
4.3.1 The western inner city
4.3.2 The eastern inner city
4.3.3 The southern extension of the inner city
4.4 Business Improvement Districts in downtown Hamburg
4.5 The prime locations in downtown Hamburg
4.6 Industry structure analysis of prime locations in downtown Hamburg
4.7 Interim conclusion

5 Empirical Research
5.1 Structure of the empirical study
5.1.1 Specification of the investigation
5.1.2 Online survey
5.1.3 Expert discussion
5.1.4 Survey of consumers in the post-purchase phase
5.1.5 Construction of the questionnaires
5.1.6 Allocation of participants to groups
5.2 Evaluation and analysis of the results
5.2.1 Online survey of retail managers
5.2.2 Expert discussions
5.2.3 Customer survey in the post-purchase phase

6 Strategic implementation / recommendation for action
6.1 Target orientation of the trade in prime locations in the future
6.2 Strategic planning
6.3 Instrumental perspective of the marketing mix
6.3.1 Product Policy
6.3.2 Pricing Policy
6.3.3 Distribution Policy
6.3.4 Communication and presentation policy

7 Inner city concept scenario as a strategy for Hamburg's prime locations

8 Summary and Conclusion

9 literature

10 online sources directory

11 Declaration on honor

12 List of Annexes

II. List of Figures

Figure 1: The retail environment

Figure 2: Types of businesses using the example of textile retail

Figure 3: Retail locations in Hamburg

Figure 4: 1A locations in downtown Hamburg

Figure 5: Square of challenges for stationary retail

Figure 6: Distribution of the retailers surveyed

Figure 7: Period of business execution 1A location

Figure 8: Distribution of retailers by branch

Figure 9: Distribution of the area sizes

Figure 10: Assortment as embossing for the name of the shop

Figure 11: Effect range

Figure 12: Online / offline pricing policy

Figure 13: Opening times

Figure 14: Branding through the store atmosphere

Figure 15: Customer opinion on the shop atmosphere

Figure 16: Store design

Figure 17: Online trading

Figure 18: Survival of stationary retail

Figure 19: Online processing of purchases

Figure 20: Integration of online retail

Figure 21: Strategic process model

Figure 22: Competitive position portfolio overview 1A location Hamburg city center

Figure 23: Changed purchasing process due to the digitization of everyday life

Figure 24: Forecast retail sales 2014 (stationary)

III. List of tables

Table 1: Retail key figures 1 A Location Hamburg city center 2008- 2012

Table 2: The empirical survey methods

Table 3: Dealers' responses to online trading 1

Table 4: Dealers' responses to online trading 2

Table 5: Reduction of the sales area in a prime location

Table 6: Reasons for reducing the sales area in prime locations

Table 7: Reasons for operating an area in a prime location

Table 8: Strengths of stationary retail

Table 9: Future strategies of the surveyed dealers

Table 10: Type of product purchased

Table 11: Frequency of stationary and online purchases

Table 12: Frequency of stationary and online purchases

Table 13: Positive thoughts when shopping at stationary / online

Table 14: Negative thoughts when shopping at stationary / online

Table 15: Reasons for stationary / online shopping

Table 16: Stationary retail in the future

Table 17: Characteristics of stationary retail in the future

IV. List of Abbreviations

1 Introduction

When you are in the city centers and especially in the prime locations of the international metropolises, whether in Paris, London, Barcelona, ​​Milan, Hamburg or Madrid, you often do not know which city you are in when you look at the shop windows because the same shops with the same presentation sell the same goods everywhere. Due to the current developments in retail, the inner cities in the prime locations are losing their profile and are becoming interchangeable retort cities that could also be set up in large centers far away from the metropolises. A current example that reflects this situation is the recently opened Mall of Berlin, which was built on Leipziger Platz on the old Wertheim property1. The dreariness of the temples of consumption in shopping centers and increasingly also in the inner cities, in which individuality apart from the uniform mainstream is increasingly becoming a special form, increases with each opening of an internationally operating branch. This development can also be felt here, especially with regard to downtown Hamburg. At every corner where a long-established Hamburg dealer had previously run his business, international branches are moving in as part of the new letting2.

What the future will look like for stationary retail as a whole appears to be uncertain. While some assume that stationary retail is only fighting back-to-back against the overpowering competition from the online sector, such as the recent Zalando founder Oliver Samwer. He calls multi-channel strategies, in which brick-and-mortar retailers also offer their goods online, provocatively "ideas from perplexed people shortly before the end"3. Others see the additional online trade as a saving future model for an industry that is battered by diverse challenges such as the high level of chain stores in German city centers and the declining margins with rising costs at the same time4.

Against the background of this discussion, this master’s thesis is intended to examine the situation of stationary retail in prime locations in downtown Hamburg and the challenges this retail sector is exposed to, in particular due to the competition from online retail. The thesis should also try to show which strategies retailers in downtown Hamburg could use in the future in order to position themselves successfully on the market, taking future developments into account.

1.1 Problem and objective of the work

In contrast to other large cities, the sales area in Hamburg is essentially divided into five retail locations5which is one of the reasons for the particularly dynamic environment for Hamburg's retail trade. In addition, there are further centers and local supply centers in the respective districts. For the retail trade in the city center, this means that Hamburg has the lowest take-up of retail space in the city center in relation to the city’s total turnover, after Berlin6. This is due to the fact that only around 13% of all retail space in Hamburg is in the city center7, while at other locations it is around 30% of the retail space8. Furthermore, the retail trade in the inner city area is exposed to the constantly growing challenges posed by online trading and rising rents. For many small stationary retailers, the competitive situation in the inner-city area certainly harbors the risk of being forced out of the main locations in B locations outside the city center.

The problem presented in this thesis combines the question from business practice as to how brick-and-mortar retail, despite its structural and historical current change processes, especially with regard to the new media and the steadily growing threat from vertical retailers and online retailing, would and can survive in the future. The discussion about the future of brick-and-mortar retail against the background of the continuing unchecked development of online retail is also present everywhere outside the specialist media and is now being carried out across all sectors in all areas of the market9. If you believe the current reporting, there are especially retailers in the sought-after locations in German inner cities, which are already weakened by the rising rents in prime locations as well as the increasing competition from stationary international chain stores and vertical providers, due to the ever increasing competition threatened from the online area10.

The aim of this thesis is to develop the mentioned problems and developments with the help of a strategy recommendation from which individual strategies for market participants can be derived. As part of this strategy recommendation, the goals of the individual dealers are bundled in specific strategy options and presented as part of the marketing mix. For many dealers in prime locations, a consistent strategy for the future will be the only way to mitigate the constantly growing threats and to find solutions to problems. For retailers in the future, implementing a consistent strategy means above all differentiating themselves with regard to the competition and strengthening their own position. In order to record the goals of the entrepreneurs in the prime locations in the future and to develop a future strategy, dealers and end customers are involved in the investigation.

Based on what the dealers say11 and the end customer12 Possible retail strategies for the existing threat scenario are evaluated and solutions are developed within the framework of the marketing mix and a future model for downtown Hamburg in 2025. These strategy options can help brick-and-mortar retail to meet the challenges of the future.

The investigation is supported by expert discussions, an online survey of retailers based in a prime location and a customer survey in the post-purchase phase.

The work is based on the one hand on the analysis of the current situation of retail in general, in particular the situation of retail in downtown Hamburg. On the other hand, the challenge posed by online trading, changed consumer behavior and further technical developments are considered.

The subsequent consideration of strategies with the help of which retailers can maintain themselves despite the strong competition and despite the high rental prices in the prime locations of Hamburg city center should offer stationary retailers and online retailers new insights into the future strategic positioning in their business area.

1.2 Structure of the thesis

The work is divided into six parts. After the introduction, the second part of the thesis looks at the situation and development of the stationary retail trade in Germany. Here, the historical events as well as the modern developments and types of operation are dealt with. Then the challenges of stationary retail are presented. Subsequently, online retail is viewed as a competitor to stationary retail.

In the fourth part of the thesis the situation of the retail trade in Hamburg, especially in the prime locations, is dealt with. After a general presentation of the situation on site, including an industry structure analysis, the fifth part presents and evaluates an empirical study based on expert discussions and an online survey of retailers in prime locations in downtown Hamburg, which the author provides on the future strategies of stationary retail was carried out in Hamburg. In order to include the end customers in the investigation in the post-purchase phase, an additional 40 passers-by at four frequency points in the city center were questioned in writing by the author. The results of the empirical study are then evaluated. In the seventh part of the thesis, the objectives of the dealers at the prime locations are derived from the considerations. A strategy based on the idea of ​​the marketing mix is ​​then developed from this.

The eighth part of the thesis contains a concluding summary and evaluation of the knowledge and results of the thesis and a critical inventory of the current situation in stationary retail.

2 Presentation and investigation of the situation in stationary retail

Trade is one of the first organized and most important processes in the way people live "13. Long before people developed state organization, there was an exchange of goods through trade. Organized trade has been proven to have existed since the Neolithic. Merchandise money was developed from pure barter. This resulted in trading on the basis of means of payment, be it weight money, be it coinage up to today's diverse forms of payment. Up to the present day, barter trading can still be found in various forms on actual or online barter exchanges and the age-old human trading instinct is lived out, for example, on flea markets, in garage sales or on online markets14.

The main task of trade as a whole is to distribute goods to the individual consumer15. The various intermediate stations in the retail sector have a wide range of tasks. For example, wholesalers convey the goods manufactured by the producer to the disposal area of ​​the local trader and thus to the level of the customer. In summary, trade can be understood as a macroeconomic system that is defined by elements and relationships between these elements16. All elements in this system act as organizational units whose functions shape the relationships in the overall system. “Trade” can generally be divided into a functional and an institutional term. Trade in the functional sense means selling produced goods at the place of consumption, consumption and use. This is based on the terms consumer demand and retail supply. In an institutional sense, trade means the procurement of goods, the organization of their route through various intermediate stages and the subsequent resale to the end consumer.17 In addition, other forms of trading can be defined, but these are not related to the topic here. In the context of this work, the focus should be on stationary retail. The retail trade is characterized by the fact that it only sells goods to end consumers.

With industrial mass production, new forms of distribution were required and expanded trading networks were created. The globalization of trade, even for less valuable goods, required further technical and economic developments and new forms of wholesale trade, new forms of organization of trade routes, distribution and the underlying production. Specialty stores and specialty stores sprang up at the retail level. The first department stores were founded, for example the Wertheim department store of the Wertheim and Karstadt brothers or Hertie and Kaufhof, founded by the Tietz family. With the establishment of the department stores, the presentation of the goods changed. Self-service and open floors, an expansion to all product ranges and new forms of payment all seemed futuristic at the time. The business principles of the time also partly included negotiating the price and writing purchases. In most cases, there was just as little exchange right as there were no warranty rights. Department stores with a focus on special ranges and consumer cooperatives emerged. In addition, trading companies founded their own factories, e.g. for food or spirits. A trend towards backward integration emerged, which should continue to this day.18

The stationary retail trade was then, as it is today, integrated into a very dynamic environment. On the one hand, this includes general developments based on the various factors that influence the economy in a market. These factors include nature, culture, politics, the legal system of a country, its society and the advancement of technology. On the other hand, the individual environment and internal situation of a retail company are decisive. This includes the resources, structures and relationships within the retail company. The graphics can be used to understand the processes and structures in which the stationary retail trade is integrated19.

Figure 1: The retail environment

Source: Schröder, (2011), p. 21.

For the German market, retail is of great economic importance. A third of private consumer spending flowed into retail companies in Germany in 2010, which corresponded to retail sales of 512.4 billion euros in 2010 or 19.9% ​​of GDP20. In 2010, every twelfth German employed was employed in the retail sector. However, due to the low growth rates, retail is not seen as an innovative, high-growth branch of the economy. In 2010 there were 375,577 retail companies in Germany, which shared the total turnover of 512.4 billion euros21.

2.1 Modern developments in stationary retail

In the literature on retail, a number of essential aspects are highlighted which will be decisive for the situation of stationary retail in the future. On the one hand, the classic range-related topics are in the foreground. These include, among other things, the reduction in the range of products, the focus on the core target group of a store, the trend towards the production of own brands, curated shopping instead of a category killer approach. Curated shopping is a trend that has appeared in the eCommerce industry since 2012. It comes from the Latin word "curare", which means something like "care" and "care".22 In relation to the stationary trade, the term means an intensive examination and differentiation of large dealers with a special range. The term “curated shopping” contrasts with the term “category killer”. The latter stands for a coverage of the entire range with the majority of all brands in the entire range of the provider with endless article depth (long tail) per category. With a “category killer approach” one can only speak of maintenance if one tries to offer all relevant brands in an assortment with endless article depth.

On the other hand, there are trends in retail that revolve around the positioning of the overall business. These are above all the mobile phone, the personalization of the shopping experience, the multiplication of customer touchpoints, i.e. the places where the customer comes into real contact with or comes into contact with the stationary business. Another trend area is the task of retailers to increase the emotional added value that customers experience when they make a purchase. In the future, the central task for retailers will be to network all sales channels. The technical term for this is multichannel or omni-channel23. This creates uniform shopping worlds for the customer. From a stationary shop to a catalog, a showroom and a mobile shop, all ways should be open to the customer to make a purchase without obstacles. These so-called "no-line worlds"24 will replace the term stationary and online as the highest evolutionary stage of the multi-channel in the near future25.

Customers can expect much simpler purchasing processes in the future. The factor of customer-friendly implementation of new technologies will also be particularly important for many retailers. For example, it is expected that the smartphone will only dominate the market for another 3-5 years before it is replaced by other end devices. A trend that sounds like science fiction from today's perspective, but can nonetheless become a reality in the foreseeable future, is to adorn yourself with digital accessories. The users of data glasses or data contact lenses can apply digital images or shapes to themselves or to places that only wearers of the data glasses can see. These can be special trademarks of luxury brands or other digital accessories. With the help of the data glasses, certain offers from dealers or objects in a city that friends have placed there via social networks can also be seen. The use of digital technologies will become important not only outside of stationary stores, but also within brick and mortar stores. Customers are already using their smartphones to call up price comparisons on the Internet while making a purchase in the store. The provider Media Markt has reacted to the competition from the Internet by offering the customer the daily price for the corresponding product on the Internet. It is also important that customers can call up information about the product directly on monitors. This saves the customer having to call it up via the smartphone. 80% of the sales in a shop are mostly generated by 20% of the products. As a result, retailers could only have this 20% of the products in stock in the future. On the one hand, this would save the costs for a larger sales and storage area; on the other hand, retailers would not have to advance the cost of purchasing and, if necessary, could purchase and deliver the product for the customer directly from the wholesaler.

The trend of augmented reality shopping also appears to be equally important in combination with real-time offers, with customers doing their shopping in virtual shops, e.g. in the subway. Another trend area is digital signage, which requires a store to be equipped with linked monitors. As with Burberry, customers can use a digital mirror in the London flagship store26 use, who puts on a complete outfit for the customer, and share it via social networks. At Lego, customers can hold a package with the product in front of a scanner and see a moving, visualized 3D model of the product's possibilities on the monitor27.

The following graphic shows the change based on examples in the textile retail sector. While sales channels such as department stores, hypermarkets, department stores or boutiques were in demand in the past, just as many new sales channels have been added that compete with the classic older models.28

Figure not included in this excerpt

Figure 2: Types of businesses using the example of textile retail

Source: Schröder, (2011) p. 23.

Many more of these types of farms can be expected in the future. A special development is going in the direction of "shop-in-shop systems", in which several retailers are divided into areas, e.g. in department stores. “Shop-in-shop systems” have the advantage of lower rents at first-class locations. Brands can also be presented alongside selected other brands in certain department stores. Another development is also going in this direction with “pop-up stores”. To represent the brand, you can exhibit inexpensively for several months in a makeshift shop and move quickly without long rental contracts. The possibility of setting up a “pop-up store” in a department store is also frequently used in practice.

Furthermore, there will be the possibility, which is already popular in practice, that dealers cooperate with models and furnish them with the clothes of their shop. The novelty is, however, these models with a beacon29 equip. As a mobile pop-up store, you can walk through the city and hang out in trendy places that reflect the image of the business. If a prospect comes close to the model with a smartphone, they could receive advertising from the retailer and discounts on the model's outfit via their smartphone. He could also photograph the model, buy the outfit directly in the retailer's online shop and have it delivered straight to his home or pick it up in the store.30

2.2 Challenges of stationary retail

Stationary retailers are facing many new challenges in the age of digitization. The tougher market, competition and environmental protection conditions, the changes in consumer behavior and the development of the new technical possibilities mentioned above represent a major challenge for all traders. The changes in the area of ​​information and communication technologies simplify on the one hand the possibilities for retailers in the area To place multi-channel and to develop new channels as well as to expand existing channels31. On the other hand, this also entails high investment costs for the retailer and of course the risk that a channel will not be accepted as desired.

The change is already making itself felt on the consumer side. As a result of the changed use of advertising materials on all channels, an overstimulation in connection with an overload of information for consumers can be seen, which increasingly leads to consumers being more cautious, less loyal to the brand and more critical of retailers. The increased expectations on the part of consumers are challenging retailers to adapt to this and to meet customers' increasingly more individual wishes. In addition, consumers are more price conscious. This, too, reduces the margins that retailers can expect32. The changed consumer behavior will be discussed separately.

Because of the great competitive pressure, retailers are dependent on using multi-channel strategies to avoid wastage and to ensure widespread sales of their products. From the consumer's point of view, however, the changed competitive conditions should lead to a uniform appearance for all of the company's channels in order not to be unnecessarily flooded with misplaced messages. The consequence could be that consumers turn away from certain brands. In order to ensure that consumers are addressed in a targeted manner via all major channels, high investments and a consistently high budget for advertising expenditure are necessary33.

In trade, like in no other economic sector, an extreme dynamic can be observed, which is leading and will continue to lead to fundamental changes within the entire industry. By 2020, some market researchers expect that there will continue to be significant drops in sales in stationary areas and that by then at least 20% of all stationary purchases will be made by mobile "Ropo"34 to be influenced. However, stationary retail currently (still) sees itself in a dominant role. The top 1,000 stationary German retailers generated sales of € 272 billion in 2012 and thus accounted for around three quarters of total retail sales35.

In the course of changes on the consumer side and due to the increasing use of the new technical possibilities on the part of consumers, the retail sector, as described, is faced with greatly changed requirements. In 2014, all retail companies are faced with the challenge of developing future-oriented strategies and operating systems in order to ensure competitive advantages and, in some cases, even survival in the market36.

2.2.1 Threat from verticalization of sales channels

The traditional specialist trade has come under great pressure, especially due to the increasing verticalization of sales channels37. The reasons for this are the increasing sales of manufacturer-owned goods via their own sales channels such as online shops, catalogs, flagship stores or factory outlet centers. On the other hand, some retailers, especially in the textile sector, are no longer assigned brands when purchasing if the brand is in extremely high demand, for example, because the brand manufacturers pursue their own ambitions. In the food, drugstore and perfumery segments, private labels are becoming competition for wholesalers. Thus, in recent years there have been developments in which manufacturers of goods have also taken on the function of trade, and on the other hand, retailers have the option of bypassing wholesale with their own brands38. The vertical providers in particular represent an enormous risk for the traditional stationary retailer. Vertical retailers are those who deliver the products directly to the end customer in a vertical line via their own channels without intermediate trading levels. The time saved from design to the finished product averages over 60 days39. In addition, vertical retailers do not have to fight a price war with discounters and buyers, i.e. they also do not have to accept a discount on their profit margins when selling. The advantage of a clear brand signature, i.e. an individual combination of product, quality and communication as well as the one hundred percent influence on the design, speak in favor of a development in the direction of verticalization for a whole range of products and producers. Some vertical providers such as Zara even manage to deliver finished goods to branches across Europe within 14 days of a fashion show.

2.2.2 Threat from changes in the cost structure

A particular level of threat to stationary retail has arisen from the increased costs. In addition to rising rental prices, a lot of money has to be invested in the design of the sales channels in the course of multi-channeling, which requires a larger number of employees. More capital must also be invested in the renewal of the areas. In addition, more qualified staff is needed to advise and address customers.

2.2.3 Threat from changed consumer behavior

Another major challenge for stationary retail is the changed consumer behavior. Purchasing motives for customers are the decisive factor for a successful commercial transaction. The motive of the customer's experience orientation is very important. This also includes the joy of shopping, shopping as a change, as a social experience or leisure activity, the customer's desire for security, as well as risk aversion, the customer's price orientation, quality orientation, advice orientation as well as convenience orientation and independence orientation40. The shopping motives themselves have not changed. These are particularly pronounced individually depending on the target group41. However, consumer and customer behavior have changed significantly.

In earlier times, consistent, one-dimensional customer behavior was assumed42. Nowadays customers are referred to as multi-optional and hybrid. A multi-optional, hybrid customer acts in two dimensions. On the one hand, he makes purchases in a discounter and at the same time purchases naturally in a luxury store. These different types of buying behavior next to one another are quite normal these days. The pattern of buying behavior is stable. Assignment to a target group is not that easy, however, since the customer's behavior can be assigned to different target groups43. The orientation of these modern types of customers is based on changing different values ​​and trends.44

The time constraints in everyday life, which consumers will perceive more and more subjectively in the future, will change shopping behavior with regard to stationary retail. On the one hand, a trend towards time-saving consumption in local supply centers with a delivery service, as is already common today, and on the other hand, a trend towards purchasing products via the Internet, is to be expected. At the same time, however, there will also be experience consumption that stages the conscious consumption of articles and the process of shopping as a leisure activity for individuals45. This creates an activity that is synonymous with sport or cultural activities. In the case of the goods of daily life, savings are made at the expense of normal consumption46. In this context, branded goods will presumably be bought much less frequently47. The already visible division of German society into high-income groups and those at risk of poverty will become even more apparent. Overall, it can be assumed that the desire for everyday consumption will decrease significantly. Inquirers will forego mediocrity in their purchases and either opt for the cheapest available alternative or for an expensive, high-quality organic product. These consequences will be reflected in both brick-and-mortar and online retail.48

Scenario: Retail in 2025 - consumer typology of the future

In the context of this section, the main types of consumers of the future will be presented as well as tips for Hamburg retailers on how to deal strategically with consumers. The consumer types of the future are based on a study by the EHI Retail Institute49, which, in cooperation with the consulting company ScMI, has carried out a study on eight future scenarios for the retail sector in 2025. The presented future consumer types then need a much more differentiated approach than those in the present50.

A. The cyberspace customers

Description:

Hedonistic cyber customers will make up part of the future customer base. They are not critical of either their shopping or their media behavior. They don't care about the origin of their products. They spend a lot of time online and are inspired by the worlds of experience of the brands in their peer group. You buy spontaneously. Their everyday communication includes data glasses, smartwatches and other mobile devices from the year 2025. This type of consumer is less interested in data protection, and technical innovations are enthusiastically accepted.51

Speech:

This type of consumer will be addressed primarily via “no-line systems” in combination with strong, effective brand presentations.According to the motto “Bigger is better”, cross-channel, dominant advertising measures are perceived positively. Targeted advertising measures based on big data analyzes will also inspire this type of consumer.

B. Lifestyle customers

Description:

Lifestyle customers find each other online in groups as well as in real life and share their interests with passion. The type of interest plays a subordinate role. Photography, playing golf, skiing and surfing determine the life of this target group. Brands play a very important role for this target group in order to demonstrate their togetherness. They are very tech-savvy and use social media to the fullest extent possible to exchange ideas with their interest group and to find out about new trends in their hobbies. These customers still value a classic approach at the point of sale and contact with a specialist advisor.52

Speech:

Lifestyle customers will be addressed through high-quality advertising measures that are not too intrusive and convey a lot of know-how. Sponsoring will be the generic term for addressing these consumers. In the communications sector, this also includes sponsored publishing and fact-based marketing.

C. Organic Lifestyle Customers

Description:

Organic lifestyle customers want to make better use of resources and prefer to share, swap or lend products. This trend is not new, but it will be much more pronounced in the future. Future organic lifestyle customers will mainly choose the retailer and not primarily the specific product. The value orientation of the trading company and advice from the sales advisor are the most important elements in the purchase decision. The holistic approach of a resource-saving life seems important to these consumers. Instead of driving the car, the bike is used: if a car is needed, one is borrowed from a "car-sharing" program. Many other articles will also be shared by this group in the future.53

Speech:

The organic lifestyle customers will be addressed through online communication. Complex print products and mailings are more likely to generate rejection, as they are not resource-efficient enough. The special focus of interest is on healthy eating, fitness and a holistic lifestyle. For example, new retail concepts that are holistically committed to sustainability will meet with great interest from the target group. These include supermarkets that dispense with product packaging and hand over goods in their original state, e.g. in deposit jars.

D. Opponents of the brand

Description:

The brand opponent consumer type is not interested in brands. You simply don't tell him anything. The members of this group will always switch providers in order to find the best value for money. These consumers are not interested in sustainability, just the cheapest product. These consumers tend to feel annoyed by advertising. They are more likely to find experiences on the Internet in groups of like-minded people.54

Speech:

This target group is only addressed indirectly. Advertising measures would rather scare off consumers, since advertising measures in the awareness of this target group go hand in hand with more expensive product prices. Communication via internet forums and social media channels would take place here on an indirect communication level.

Consumers of the future will have one thing in common, however differentiated their interests may be, the focus will increasingly be on the internet as a central communication tool for addressing customers and all other channels, whether television, radio and print media, will overtake and completely replace for some target groups in the long term . For all consumers of the future, it is important to address them in a much more targeted manner than today. Given the enormous amount of information that consumers are exposed to, high-quality CRM analysis tools are required with which all data can be consistently collected and evaluated. The topic of “Big Data” and the analysis and evaluation of the data is currently still in its infancy. In the next few years, however, targeted analyzes and product presentations will be placed much more precisely on the channels relevant to the target group. The positive consequence is the avoidance of scatter effects in advertising and cost savings on the retail side.55

2.2.4 Other challenges for stationary retail

In 2006, Zentes / Schramm-Klein came to the conclusion that56 that German retailers tend to be cautious about this issue57. This assessment is still confirmed today by a study by the market research institute GfK58. The company has established through studies that "multichannel retail in the non-food sector in Germany offers enormous potential, although it has only been tapped to a limited extent"59. In 2009, around 9.5% of sales in the non-food market were generated in multi-channel systems. By 2015, this proportion is expected to increase to 16.9%60However, many dealers see great difficulties in the high technical requirements that the new technical developments bring with them. Among other things, the dealers are faced with the task of providing data maintenance and IT services, which many small businesses in particular view very critically61. Not least because for many retailers this means enormous investments in software, trained personnel and additional effort in product presentation, which many cannot implement in practice, they wait for the development.

3 Online retail as a challenge for stationary retail in prime locations

The interactive trade in goods and goods is currently running62 to a volume of € 48.5 billion in 2013. This means that interactive retail already accounts for 11.2% of total sales in German retail63. 70.8% of this turnover was generated in the desktop-based Internet, of which 13.2% was accounted for by traditional telephone orders and 10.2% by orders via mobile devices. Trade via mobile devices, mobile commerce, recorded a 2.5-fold increase between 2012 and 2013 inclusive64. For 2014 an increase in sales for the entire interactive trade by 15.5% to € 55.8 billion is expected. The share of pure e-commerce is expected to increase by 24.8% to € 48.8 billion65.

The new driving forces in the dynamics of trade are not only to be found on the level of social, demographic and economic development, but also in the further development of trading systems.66 Over 2.6 billion people around the world use the Internet; more than 65 million of them live in Germany. A large proportion of people's free time is spent on social networks and the internet. This is increasingly happening on the go via mobile devices. In 2013, the number of mobile Internet users exceeded that of desktop users for the first time. The mobile device is becoming more and more important and takes on the role of the center of life of a digital lifestyle. This goes hand in hand with the availability of the consumer's communication channels, to whom retail offers can be made at any time67. How and through which channels these can be accessed is explained in more detail below.

3.1 Types of sales in online trading

Online trade as a form of trade is now carried out in four types of distribution: single-channeling, multi-channeling, cross-channeling and omni-channeling68. By expanding the technical possibilities, various channels were quickly expanded and rebuilt in order to provide consumers with the best possible shopping experience69. The different channels are briefly shown below.

3.1.1 Single channeling

Classic single-channel online trading has existed in its current form since the 1990s. With the technical possibilities of the time, images of a product, sorted by category with a heading and a product number, could be posted online like in a normal mail order catalog. It should be the further development of the catalog and at the same time a cost saving compared to print production. This procedure, known as the storefront system, corresponded to the technical possibilities at that time. The handling of order processes using Excel spreadsheets shaped early online trading. An order had to be submitted by phone stating the order number. The payment process was also transmitted by phone: Cash on delivery, prepayment or purchase on account were available. On the customer and company side, the lack of transparency quickly became a risk. The technical developments in the following years consisted of setting up CMS systems with professional product databases, customer management areas and help functions, personal wish lists and address management, thus enabling customers to have a completely new shopping experience70.

In the past, following the failure of numerous providers, a focus on pure single-channel sales was often considered to be less than expedient. Nevertheless, there are still companies such as Zalando and Asos that have successfully specialized in this field. After the end of the dotcom bubble, the classic catalog was revived and used alongside the simply designed online shop. The invention of multi-channeling was to rely on a catalog as well as an online shop or a teleshopping on television71. Due to the technical possibilities of this time, consumers could only view the products as moving images on television72. The teleshopping on television has increasingly become a niche product, but nowadays there are still teleshop transmitters that specialize in sales73. Another development was cross / omni-channeling. The new technical developments open up new possibilities for changing consumer behavior. The consumer can now be inspired by new goods anytime and anywhere, in order to call them up at home on the Internet and to deal with them more intensively. If a consumer then stays near a stationary store of the preferred brand, he can view the desired item of clothing on site, try it on and take it with him if desired or order it online and have it sent to his home. Retail in 2014 no longer lives only from technical functionalities, e.g. the ability to receive special offers with the smartphone via apps, but above all from the interaction of technical functionalities with content and recommendation marketing via social channels and recommendation platforms. This means a simultaneous interaction of technical possibilities and purchase-related content in favor of a strong and uniform appearance of the brand on all channels with a focus on the end customer74. A consistent buying experience for the customer should always be in the foreground. On a functional level, the customer should always have the option of reaching customer service immediately, be able to obtain information at any time and find holistic, transparent processes75. On the other hand, the customer should have access to recommendations and product placements in blogs and via social media channels at all times on a personal level. This approach is already being implemented by a number of companies. Friends can be informed directly about the purchase and comment on the purchase. Mobile payment, geo-shopping and bonus incentives serve to generate reach for the retailer on all channels. According to some authors, the so-called no-line systems, i.e. the further development of multi / omni-channeling, will be the future model of success76.

3.1.2 Pure online trading

The single-channeling online shops as pure online retailers, i.e. those that only operate online, currently have a market share of 44%77. Most of the market participants in this area are startups. The technical possibilities allow online trading to be conveniently controlled from the home office. This favors that small traders have settled in all areas of daily needs. Whether pet supplies (Wauwaubox.de)78, Luxury items (Stylebob.com)79 or specialties (Gourmondo.de)80, Most of the ideas come from the USA and are adapted to the domestic German market and implemented in accordance with the rules of the German market81. Pure online players like Ebay82 or DaWanda83 have discovered, however, that brick-and-mortar retail can also have advantages. Since 2013 there has been the development of pop-up stores at a premium location for image maintenance.

3.1.3 Community Driven Shopping

Community-driven shopping is on the one hand with social commerce providers such as Etsy84 can be found, on the other hand, in closed shopping clubs such as Best Secret85. Etsy offers home-made products on its platform. For a small fee, customers can open a shop for their products on the platform and use it to make purchases. Shopping clubs like Best Secret invite their customers to join the closed shopping community via personalized emails. Members must generate a minimum annual turnover in order not to be expelled from the club. Club members receive birthday mailings and daily newsletters with exclusive limited offers.

3.1.4 Collective Buying

Collective buying means that groups of customers jointly purchase goods or services which local providers in a city can then offer well below the normal market price. The provider makes a profit from the large number of goods or services sold in a deal. This model was made by Groupon City Deal86 and from Daily Deal87 adapted in Germany and originally implemented with great success. Google (Google Offers)88 and Facebook (Facebook Deals)89 now complete the offer.

3.1.5 Subscriptions

The trend towards subscriptions, subscriptions, is ultimately the further development of the idea of ​​the book subscription. Although the customer usually does not become a member with a subscription, he is given the option of subscribing to a product for as long as he wants with a flexible monthly notice period. However, the shopping carts in Abo Commerce are very small. This model also has its origins in the USA: Not all subscription models that are very successful there work on the German market: Glossy Box90, a particularly successful copy of the Birchbox from the USA tried to operate outside of the beauty segment in Germany and also wanted to offer the US startup "Shoedazzle", a shoe subscription. The concept was unable to establish itself on the German market because German consumers were not ready to buy shoes online as a surprise91. The Glossy Box beauty subscription is, however, very successful and has also been copied by established stationary providers such as Douglas as part of the Douglas Box. For men, the companies have Outfittery92 and Modomoto93 invented the clothing subscription: men can test their clothing style and receive complete outfits every month. The consumer only keeps and pays for products that they like. He sends back the other products. Here, too, there is great potential for stationary providers in the local area.

3.1.6 Mobile commerce

Mobile commerce can be defined as "..comprehensive processing and support of value creation processes in companies supported by the use of mobile electronic information technologies. Procurement processes, administration, sales and customer management processes are included "94. According to Broeckelmann, mobile commerce is a sub-category of mobile business that combines all sub-categories of a digital transaction95. Mobile commerce plays out the literature96 the key role in future online trading, as it enables simultaneous purchases on all channels97. However, this trend is also leading to new expectations among consumers when it comes to stationary retail. The latest technical developments use social media, location-based and augmented reality options. This means that in public places, for example, virtual shops with virtual shelves will be created in which consumers can shop with special discounts. In particular, high-tech smartphones of the 5th generation open up completely new possibilities for stationary retail: Location-based services are combined with attractive offers from retailers and attract customers to their shops. For example, customers can use the Springer Shop Now app98 or the Amazon Flow app99 get special, time-limited discounts and redeem them in cooperation with stationary retailers100. Local price comparison options, NFC technologies, for example with the 6th generation of iPhones, make it possible to use the iPhone, for example, as a wallet for a credit card. With a faster payment process, which the smartphone will enable in the future, customers will save time at the checkout, for example by performing a self checkout and paying for the products on their mobile phones when they leave101.

The new Zalando app also represents a special development102 which has an image recognition function. Customers can take photos of passers-by on the street.The app compares the picture with currently around 150,000 products in the Zalando.de database and shows the results, e.g. similar items of clothing as worn by passers-by on the street, on the mobile phone. So far, however, the app only works with the iPhone and only in Germany. In contrast to general searches in the desktop-based Internet, mobile commerce has the advantage that a mobile device, e.g. a smartphone, is a constant companion and can be used at any time. The future prospects for mobile commerce are great, especially as a sales driver in retail. According to Gerrit Heinemann103 Ebay was able to process 17% of its total sales via mobile devices in the 2012 financial year.

Mobile commerce for brick-and-mortar stores could be even more important than for pure online trade thanks to the web-to-store effect, which describes the role of the mobile Internet in preparing for purchases. In 60% of purchasing activities, people first browse and inform themselves on the tablet or smartphone before the customer decides to go to the store and buy the item offline. This blurs the transition between online and offline to the no-line systems already mentioned, in which the operating forms merge. The synergies of the SoLoMo systems, which denotes the interaction of social, local and mobile networks, are also linked to this development104.

The extensive use associated with smartphone penetration also means that users are available 24/7105 (24 hours, 7 days) are online and can communicate anywhere in the world at any time. The users share information about their whereabouts and their purchases at any time. Every online shop is already using the share-to-social function to notify the social network of a new purchase. The social network is therefore a companion through all life situations, which are transmitted in real time. The term local, on the other hand, indicates new functions such as popular local shopping, i.e. local, stationary shopping. Via the social channel, the user receives the notification that friend X has just bought item Y in downtown H, and he also receives a message on his mobile device that, if he also purchases this item within a certain time window, 10 Get% discount on this item.

Another development that will be of great importance in the context of stationary trade and the use of mobile devices is the use of beacons (transmitting stations) and the well-known NFC technology (Near Field Communication)106. Beacons are transmitters that send messages to smartphones via an economical Bluetooth low-energy system as soon as a smartphone owner recognized by the system is in their vicinity. This can take place, for example, while shopping and specifically help with the sale of certain goods. However, the prerequisite is that customers install an app that makes it possible to receive the signals from the beacons and activate the Bluetooth reception of their smartphone. So far, beacons are still a niche product in Germany, but in the USA they are already used in over 800 Macy's branches, many airports and even in street advertising. Beacons can also contribute to navigation in the department store and show special information on certain products or locations in the department store without the customer having to scan a QR code, i.e. a code optimized for a mobile device. The process of scanning would then be omitted, the cell phone would automatically communicate with the beacon. Interesting developments can therefore be expected in the future. A constant struggle is conceivable among the providers to win over the consumer who, as a regular customer, receives price proposals for the products via the various beacons. The NFC competes with the beacons. With NFC technology, signals can be transmitted over a very short path. Among other things, this should enable cashless payment. An important provider of smartphones, Apple, does not support NFC technology until the 6th generation of the iPhone, together with the energy-saving Beacon Bluetooth LE technology.

In the near future, the mobile device will increasingly replace the laptop and PC as the primary device for Internet use107. This trend will also be reflected in consumer behavior and the expectations of consumers. The key role in this development will be played by the latest generation of mobile commerce, which will make simultaneous, cross-channel sales consistently feasible108. 65% of smartphone owners already use the device in a stationary environment to find out about the price and obtain further information before making a purchase decision109. Customers who buy stationary visit an average of three websites in advance110. This, also known as the ROPO effect111 This phenomenon is seen in the literature as the central argument for a holistic, cross-channel approach to online and brick-and-mortar retail. ROPO means that customers find out about the product they want on the Internet and then purchase it offline. It will be difficult to differentiate between online and offline trading in the future112. The importance of local functions and social networks will increase particularly rapidly in mobile commerce.

3.2 Further current developments in online trading

With the great success of online trading, many new market participants have entered the retail value chain. In this context, above all providers of access to the Internet and search engines (e.g. Bing, Google) or social networks (e.g. Facebook) and digital sales agents (e.g. Amazon) who want to earn money from sales and purchases should be mentioned113. Internet access providers want to use their technology and data sovereignty in the future in order to advance the expansion of their own added value and to increase their influence on the classic trading functions. These include information and advice, the compilation of the range and related services114. The much discussed topic of big data also flows into this context; because it is precisely those companies that have data warehouses with their customers' email addresses and personal data that can position themselves in the market in the future by trading customer data. With modern web analysis tools, companies have many more options available. There are already algorithms that are programmed in such a way that they learn intelligently. They are fed from customer information, the address of the place of residence, cookies from visited pages on the Internet, date of birth, past purchases, payment information and web information about the person. From this, with the help of statistical calculations, it can be determined when the customer is looking for which item of clothing next, and it can be offered to him in a targeted manner even before he searches. With some email services, including GMAIL or Hotmail, all emails are also checked for keywords, the data is sold to dealers and the customers receive targeted advertising accordingly. However, different data protection regulations apply in the EU than in the USA, where bank information and other personal relationships can also be collected, stored and processed.

[...]



1 See Die Zeit (October 3, 2014).

2 See also Celko / Jánsky (2014)

3 See also Handelsblatt (2014).

4 See BEVH (2014).

5 See Lührmann (2013) p. 11.

6 See also the city center association (2014).

7 See Comfort High Street (2014), p. 101.

8 See Urban Planning Hamburg (2014).

9 See also Heinemann et al. (2013).

10 See also the minutes of the expert interviews in the appendix.

11 See the minutes of the expert discussions in the appendix.

12 See statements made by customers in the post-purchase phase in the appendix and in Section 5.2.3.

13 Zentes, (2006), p. 14.

14 See Zentes, (2006), p. 14f.

15 See Heinemann et al. (2013), p. 4.

16 See Müller-Hagedorn. / Natter (2011) p. 14ff.

17 See Zentes, (2006), p. 14.

18 See Berekhoven, (1987) p. 15ff.

19 See Berekhoven, (1987) pp. 87ff.

20 See Federal Statistical Office (2012).

21 See Federal Statistical Office (2012).

22 See also Heinemann et al. (2013) p. 187.

23 See Heinemann (2008), p. 14ff.

24 See also Heinemann et al. (2013) p. 309.

25 See also Heinemann et al. (2013) p. 126.

26 See Burberry (2014).

27 See Lego Digital Box (2014).

28 See Schröder (2011) p. 20 ff.

29 See also section 3.1.6.

30 See Celko / Jánsky (2014), p. 14ff.

31 See also Heinemann (2008).

32 See also Heinemann et al. (2013).

33 See also Heinemann et. al. (2013).

34 Research Online - Puchase Offline

35 See EHI (2013).

36 See Heinemann et al. (2013), p. 2ff.

37 See Heinemann et al., (2013), p. 51f.

38 See Burmann / Meffert (2007), p. 176.

39 See also Der Handel (2012).

40 See also Foscht (2011).

41 See Solomon (2011) pp. 252ff.

42 See Foscht (2011) p. 169ff.

43 See also Homburg (2012) pp. 45ff.

44 See Schröder (2011), p. 48ff.

45 See Salomon (2013) pp. 357f.

46 See also Opaschowski (2008).

47 See Opaschowski, (2008), p. 152ff.

48 See also Foscht (2011).

49 See EHI (2013).

50 W&V (46/2013) p. 14ff.

51 See also W&V (46/2013).

52 See also W&V (46/2013).

53 See also W&V (46/2013).

54 See also W&V (46/2013).

55 See also Porter (2013).

56 See also Müller-Hagedorn / Natter (2011).

57 See Zentes / Schramm-Klein, (2006), p. 9.

58 GfK (2010), p. 19ff.

59 GfK (2010), p. 22.

60 See GfK (2010) p. 12.

61 See Der Handel (2012), section: Multichannel with high technical effort for retailers.

62 Meaningful figures for 2014 were not available at the time of processing.

63 See BVH Interaktiver Handel (2014), section: Interactive retail is growing.

64 See BVH Interaktiver Handel (2014), section: Volumes in interactive retail.

65 See BVH Interaktiver Handel (2014), section: 2014 annual forecast for interactive retail.

66 See Heinemann et al. (2013), p. 4.

67 See Heinemann (2014), p. 8f.

68 See Heinemann (2014), pp. 88ff.

69 See Heinemann (2014), p. 8ff.

70 See also Heinemann (2014) pp. 89f.

71 See Heinemann et al. (2013), p. 53

72 See Heinemann (2014), p. 11. ff.

73 See HSE24 (2014).

74 See also Homburg (2011) p. 612 ff.

75 See Heinemann (2014), p. 11.

76 See also Heinemann et al. (2013) and Heinemann (2014).

77 See Internet World Business (2011) p. 29.

78 See Wauwaubox (2014).

79 See Stylebop (2014).

80 See Gourmondo (2014).

81 See Heinemann, G. (2014), pp. 90 ff.

82 See Ebay (2014).

83 See DaWanda (2014).

84 See Etsy (2014).

85 See Best Secret (2014).

86 Groupon (2014).

87 Daily Deal (2014).

88 Google Offers (2014).

89 Facebook (2014).

90 See GlossyBox (2014).

91 See Heinemann (2014), p.89.f.

92 Outfittery (2014)

93 Modomoto (2014).

94 Broeckelmann (2010) p. 12.

95 Broeckelmann (2010) p. 13.

96 See also Heinemann (2014).

97 In future “no-line systems”.

98 Springer Shop Now (2014)

99 Amazon Flow (2014)

100 See Heinemann (2014) p.97.

101 Iphone 6 (2014).

102 Based on the software from Cortexica (2014).

103 See Heinemann (2014) pp.107f.

104 See Heinemann (2014) p.14 f.

105 Colloquial language indicative of 24 hours a day, 7 days a week.

106 Süddeutsche Zeitung (2014).

107 See Heinemann (2014), p. 9.

108 See Heinemann (2012), p. 1.

109 See also FAZ (22/9/2014).

110 See Heinemann et al. (2013), p. 21.

111 "Research online, purchase offline".

112 See Heinemann et al. (2013), p. 23.

113 See Heinemann et al. (2013), p. 51ff.

114 See Heinemann et al. (2013), p. 52f.

End of the reading sample from 163 pages