Business to Consumer Model: a Positive Impact of Online Business on the Marketing and Operation of Sales in the Clothing Industry

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BUSINESS TO CONSUMER MODEL: A POSITIVE IMPACT OF ONLINE BUSINESS ON THE MARKETING AND OPERATION OF SALES IN THE CLOTHING INDUSTRY.

RESEARCH PAPER BY TEMITOPE SHAKIRAT ODULAJA ISAS 610 SESSION 9043 UNIVERSITY OF MARYLAND UNIVERSITY COLLEGE.

ABSTRACT This study aims to examine how the internet has greatly increased sales in the clothing industry. Adoption of electronic business has led to success in the clothing industry through effective marketing operation of sales. E-business has a characteristic of selling goods, providing services and distributing content at the same time, meeting all customers’ needs. The growth of internet shopping is driven by greater emphasis on consumers’ efficient use of time as well as an increasing number of computer trained consumers. The paper then focuses on business-to-consumer (B2C) business models that have emerged to sell apparel on-line. We’ll explore a range of B2C business models, from the introduction of new “pure-play” business models to the development of on-line strategies by incumbent brick and mortar retailers, catalogue companies, and apparel manufacturers, highlighting some of the challenges relating to channel conflict and supply chain management that incumbent firms face as they enter into the world of apparel ecommerce. The paper also talked about the factors affecting e-commerce adoption in the clothing industry and suggested solutions.

2 INTRODUCTION An increasing percentage of US consumers’ shopping over the recent years has been taking place through the internet. There is a rapid expansion of retailers direct marketing to consumers over the internet resulting in the growth of sales compared to the traditional means of retailing. Seock, Y., & Norton, M. (2007). E-business is the electronic conduct of business with anyone, anywhere and at anytime.(Parthasarathi, V. 2009) defined E-commerce as the use of electronic communication and digital information processing technology in business transactions to create, transform and redefine relationships for value creation between or among organizations and between organizations and individuals. It has a large impact on industry as a whole including aspect associated with business-to-consumer e-commerce and business-to-business e-commerce. The basic modes of organizing companies practising electronic business are the creation of the ‘brick-and-mortar’ company by installing an e- business division. Second is the initiation of an enterprise as an electronic business company without previous links to the traditional ‘brick-and-mortar’ organization of business strategy. E-business has increasingly become a necessary component of business strategy; it acts as a strong catalyst for economic development. Parthasarathi, V. (2009). The integration of information and communication technology (ICT) in business has improved productivity, encouraged greater consumer participation, enabled mass customization and...
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