Integration of multi-channel distribution and its impact on profit of fast fashion companies

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Journal Title
Journal ISSN
Volume Title
School of Business | Bachelor's thesis
Date
2017
Major/Subject
Mcode
Degree programme
(Mikkeli) Bachelor’s Program in International Business
Language
en
Pages
56
Series
Abstract
Objectives The main objective of this study is to make a comparison between multi-channel distribution and single-channel distribution companies in terms of profit growth. The comparison enables companies to select the type of distribution system suitable for their businesses. Moreover, this paper strives for an effective framework of multi-channel distribution integration, which guides the companies to integrate their distribution channels in the case they choose to apply multi-channel distribution system. Summary Based on data from a survey, the paper explores customer behaviors related to the multi-channel distribution of fast fashion companies and points out that the system helps to enhance customer attraction and brand awareness. It also analyzes the financial performance of five fast fashion companies during a five-year period from 2012 to 2016. Aiming to instruct companies operating in the industry to integrate multiple distribution channels, a framework is proposed based on the original six-stage multi-channel strategy model of Sharma and Mehrotra (2007). Conclusions Integration of multi-channel distribution positively influences customer attraction and brand awareness of fast fashion companies. Nevertheless, e-commerce distribution only fast fashion retailers are having higher net income growth than multi-channel distribution retailers in the recent five years. The single-channel retailers may take into consideration applying the framework proposed in this paper to integrate retail stores with e-commerce channels effectively.
Description
Thesis advisor
Almor, Tamar
Keywords
multi-channel distribution, multi-channel marketing, fast fashion, e-commerce, H&M, Inditex, Uniqlo, ASOS
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