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HI6008 Business research Proposal Management Assignment
HI6008 Business research Proposal Management Assignment contains theoretical knowledge about the research topic. Ecommerce is popular business concept in the modern business scenario. The organization sales their products through various ecommerce sites because it increase the customer preference and give opportunity to the retailers for expand their business location in different countries. The learner has observed that purchase decisions of the customers are influenced by the popular e-commerce marketing strategies. It has been observed that popular e-commerce is tapped with social media. Therefore the organization frees online promotion through the e-commerce site. As stated by Cavusgilet al. (2014), “ecommerce means you can fit into your customer’s busy lives, offering the products they want, when they want them”. The learner has distinct idea about the brand recognition in e-commerce that affects the performance in the said industry. On the other hand ecommerce offers a personalised experience to the customers so that the customers return again. Therefore, ecommerce is a supportive online store for increasing brand popularity and brand value in global market (Lin, 2015).In this part the researcher has planned to elucidate the concept of ecommerce and its impact or effect on the import fashion and designed bed sheet and flat sheets in Australia. The researcher also discussed the information by evaluating the theories and models to establish a strong viewpoint about the performance and impact of e-commerce.
1.1 Concept of ecommerce
E-commerce (electronic commerce) is a buying and selling process of the products and services through online by transmitting the funds over the electronic network system. This type of business transaction occur either business to business or business to customer. As stated by Ifinedo (2011), ecommerce usually associates with the purchasing and selling process over the internet. It has been noticed that popular ecommerce sites like Vinomfo, Hard to Find, Amara, I LOVE LINEN and eBay have interchangeably diverse distinct concepts among the customers. On the other hand, small business organizations consummate ecommerce giants to increase their brand value in national and international market. As argued by Alam, Ali and Janic (2011), ecommerce sites not only maintain the business of an organization, but also need to communicate with the logistics service organization for import the products from abroad in proposed time.
It has been noticed that ecommerce sites have arranged the products in attractive way to attract customers easily. I LOVE LINEN have been voted by customers as customer friendly ecommerce website. This popular website claims that talented employee relation is passionate about the linen and interior experts with an eye of quality (Ghobakhloo, Arias-Aranda& Benitez-Amado, 2011). It has been noticed that the experts of ecommerce know about the thread count and preference of the customers towards any special fabric therefore they arrange the products in a proper manner so that the customers can find out their preferable bed sheets and bed accessories. The ecommerce marketing experts have observed that the customers have differentiated between the various fabrics that include percale, sateen weaves, single or double loop in towel. According to the customer’s experience, differenttype’s fabrics create different comforts. In order to make the product attractive the ecommerce site adds brief product description along with products (Mason, Carter &Tagg, 2011). On the other hand the returning policy, secure payment policy and proposed delivery date also attract customers.
Several marketing approach and online promotional strategy supports the business of small and medium sized organization. According to the vision statement of the I LOVE LILEN, the organisation has received gold star quality rating from their consumers. It has been observed that the ecommerce organization follows the review of the customers and maintain the product segmentation as well. As stated by Eid (2011), import of the foreign products generally attracts the customers. On the other hand the brands have got enough scope to sell their products in international market without partnership with other organization.
It has been noticed that ecommerce site is generally a supportive promotional aspects of the organization to enhance their business in other country. Therefore, all organizations haveadoptedecommerce business strategy to increase customer satisfaction and retention.It has been thoroughly followed that market share and revenue of AMARA has increased after launching their ecommerce site in Australia, UK, US and other countries. It has been observed that the organization has implemented attractive marketing strategy through ecommerce sites. The organization has showcased their products and added comment “come visit our store to feel the products”. Therefore, organizations which are not utilizing e-commerce for increasing their sales are lagging behind the new marketing tactics (Polonsky, 2011).
1.2 Impact of ecommerce:
The organizations have used ecommerce service from the year 2005 to increase their market popularity and profit (FossoWamba, 2012). Therefore, ecommerce have some good impact on the fashion and designed bed sheet and flat sheets business in Australia. Those impacts are as follows:
Ecommerce influences purchase decision:
Now the trend of the customers is to search the product through online and try to get product information from website. After observing this habit of customers popular ecommerce organization has designed their website as showroom and maintained proper segmentation so that customers can easily find out their preferable products. The customers have not enough time to visit stores, so the online store is preferable for them (FossoWamba, 2012). It is easier for the customers to buy the product with the help of some click rather than going to the retail stores or outlets. It has been noticed that a well-designed ecommerce website also influenced the purchase decision of the customers. Sometimes the customers are attracted by showcasing style of the products. The bed covers can attract customers when it fully displayed on a bed rather than packed in the covers. Therefore, the display procedure attracts the customers. It has been observed that some timer extra customer friendly atmosphere also decreased their profit and brand value (Zhu, Mukhopadhyay&Kurata, 2012). eXtra’s had lost their revenue in 2014 due to their customer friendly attitude. Therefore, an easy searchable and convenient catalogue is more effective than easy friendly appearance of the website.
This statistical figure provides the detailed information on ecommerce sales in Australia from the business year 2015 to the business year 2021. It can be illustrated from the stat that in the year 2016 the ecommerce sales was around 9.5 billion US dollars and the sales raised to 15.44 billion US dollar in the business year 2021.
Ecommerce taps into social media:
It has been found that customers turned towards social media such as Facebook and twitter to research about their potential purchases. Therefore, ecommerce websites has implemented a new strategy to promote their products in the social media to attract customers. As stated by El-Gohary (2012), for smart business, the engagement in the social media may raise their company profile and encourage traffic and sales. According to the social media marketing strategy, ecommerce can match the product with the situation such as well-designed bed cover is displayed in a well-furnished room so that it can attract customers. As stated by Ashraf, Thongpapanl and Auh, (2014), offers and competitive content can be used by the marketing experts to grab attention and encourage the visits to the ecommerce stores. It has been observed that I LOVE LILEN has developed stylish social media presentation in YouTube channel along with the useful videos and Facebook page that regularly updated by the marketing experts. Apart from that the marketing experts regularly handles the subscribers and customers feedback and provide their necessary informationabout the products. Therefore, the social media promotion is a simple strategy but it also connects emotionally with the customers.
Ecommerce is convenient:
It has been found that disadvantage of retail store is that it opens 10 hours a day and 6 days a week. Therefore there is a time bound for the customers to visit in the shops. Therefore busy parents have to visit the store before their kids getup or the busy professional have almost no time to visit stores. Therefore, the number of convenience customers gradually increase in online stores. As stated by Jones et al. (2014), now people are living hectic life so getting to a bricks and mortar stone means taking a sizable chunk out of their day for a detour. Therefore, ecommerce change the concept of shopping and the brands can enter in the busy life of the customers. On the other hand the relevant offering of the products makes the ecommerce business popular. eBay is a prime example of online shopping due to the availability of varieties of fashionable and designing bed covers and flat sheets any time. It has been observed that the convenience combination with a quick checkout process, order tracking and quick shipping process of the international products are considered as a winning combination of ecommerce business.
Ecommerce of fashion industry in Australia holds nearly 3.15 billion US dollars in the market.Domestic merchants in Australia spend nearly 62.4% or 2 billion US dollars of that money.According to NAB after home ware and groceries fashion products share in online shopping is around 15.7%. Fashion market share of Australia is 26%. On annual basis, ecommerce market for fashion industry raise to 18.8% in the month of June 2016. Sydney and Melbourne were recorded with an uplift of 22% as the growth was much higher in metro areas.
Ecommerce can broaden the brand
Ecommerce always specified the products. The customers can easily find out the products simply by web search. The ecommerce provides customers the ability to place order a product to their exact specifications. As stated by Aininet al. (2015), ecommerce has been used by the brands to increase their business area by the range of products for sale. On the other had it also bring more customers with the help of the promotional or customised and diversifying sales strategy. It has been noticed that ecommerce has released the smartphone based application so that customers attach with the organization more time than past (Yuen, Yeow& Lim, 2015). It has been observed that some ecommerce have implemented the product features demonstration video ion social media to attract the customers.
Australians youth spends more of their money to the fashion industry via online. The age group ranging from 18-24 years prefer to shop online from their bed and this way they make around 36.6% of purchase. 38.4% of online purchases are done spontaneously. NSW’s central coast a holiday spot named Bateau Bay is the biggest ecommerce place for online fashion shopping.?
To make a fair discretion about e-commerce, the other side of the coin must be evaluated with considerable focus. As with any novel business strategy, e-commerce also has some marked weaknesses that can seriously deter the growth of business. Some of the biggest disadvantages of e-commerce have been discussed below.
Lack of Personal touch
Successful business values human relationship and attempt to foster a long lasting partnership between the client and the vendor. It is always reassuring for the customer to shop at an outlet where the one-one interaction and interpersonal communication is facilitated. Buying with one click and checking out on a virtual cart does not hold the same meaning for many customers who attach paramount importance to this personal mode of business dealings. This is possibly, although qualitatively, the singular biggest disadvantage of the e-commerce way of business conduction.
Limited scope of hosting products
There is considerable lack of universality when it comes to the variety of products that can be hosted online. Most commonly, the perishable goods like Ice cream or a Popsicle etc. cannot be hosted on e-commerce because of the limitations of storage conditions while transportation. To reach the customer keeping desirable characteristics intact, the transportation provisions will have to be otherworldly in nature! Most of the odd-sized goods like furnishings, modular house ware etc. poses terrible inconvenience in the online purchase procedure. Although the cost of transportation can be borne in the second case, the after sales activities to be tended to the customer suffer a serious limitation. If a person wants to return a furnishing product after buying it, the shipping cost will be double with overheads and the latter half of the cost cannot be procured from the customer in any way.
One of the biggest questions raised against e-commerce viability, from the consumer perspective, is the inability to experience the product before actually purchasing it. Although marked innovations have been made in this sector, the high priced products are suffering from customer ignorance due to the amount of risk that they have to put in before actually buying something without first-hand assessment. Offline stores have experience centres and encourage customers to use and examine a product before they plunge into a decision. E-commerce has a long way to go before it can facilitate the same without compromising on its cost feasibility aspects.
E-commerce necessitates the waiting period before a product can arrive to a customer. For example, if a customer is looking for a basic every item like a pen or a pair of socks, it will be entirely logical for them to go to an offline store rather than saving a few bucks to buy it online when they know the fastest the product will reach them is maybe 20 hours later. There is only so much gap that a business can bridge by providing discounts. The need-based or emergency products are therefore, almost never purchased from an e-commerce website.
The SSL Certification is an inside business and the security questions pop up among customers who have limited or no knowledge of the same. Even so, the security questions have been put up against payment gateways via multiple cyber thefts in recent times. All in all, customers enjoy much more peace of mind when they are shopping offline. Some of the more conservative customers therefore find it difficult to change their old ideals of shopping owing to the news of credit-card frauds, identity thefts etc.
1.3 Effect of ecommerce on brand loyalty:
It has been observed that modern customers are practicality, discerning and always want quality product and service from the online and offline retailers. Therefore, ecommerce organization has faced difficulties to arrange the product in an attractive manner so that the online retail store attracts the customers. Agwu and Murray (2015) has triggered a controversy by saying that some customers are also capable of incredible loyalty when they find their preferable brand in online stores. However the ecommerce website has faced challenges for dynamic change of customers’ preference, delivery issue, payment issue and low product quality of some brand. It has been found that eBay has lost 5% market share in 2012 due to poor product quality and payment policy. Therefore, it has affected the brands who continued their business through eBay. Taking a dig at Cui and Pan (2015), for the controversial comment some popular ecommerce has implemented five different strategies which increase customer satisfaction.
Designed customer friendly website
It has been observed that some ecommerce organizations have designed simple website along with customer help number and 24/7 live chat. Therefore the customers get live support when thy face challenge for find out their preferable product. It has been noticed that customer often face the issues regarding payment and product return and payment reimburse. Therefore, ecommerce site must be transparent about that matter. As argued by Cavusgilet al. (2014), the critical website reduced the brand popularity and brand value in competitive market. It has been noticed that I Love Linen has designed easy and simple website so that customer can easily know the product details, colour, types of linen and price. On the other hand the multiple delivery date option and almost all area coverage by their logistic service increase their brand loyalty. As a result the more than 30% revenue has increased in 2012. Therefore well designed website has positive impact on the brand loyalty which enhances the sales and brand value.
Focus on smooth selling
The smooth selling process and easy accessible website are key objectives to attract the customers. According to the KISS Metrics report, more than 48% consumers do not prefer to wait more than 5 second for loading the webpage (Lin, 2015). Therefore slow loading, bugs or server down issues will send their shoppers running into the arms of other ecommerce sites. Therefore, networking connection, server maintenance and peering system must be the first priority for the ecommerce organization. It may affect the customer loyalty, customer satisfaction and sales.
Build trust and prove to be trustworthy
More than 69% customers are retained by the ecommerce website for their brand trust and previous experience (Ifinedo, 2011). Therefore, the ecommerce website has to strategic development trust through their service. It has been observed that popular ecommerce website has sumptuous discounts on the festive season to attract customers. After attracting customers, the organization has built the trust through easy delivery system, secure payment policy and easy exchange or return policy (Alam, Ali &Janic, 2011). Therefore, the trustworthy behaviour of the ecommerce may increase the brand loyalty of the popular bed room accessories retailers.
However, brand loyalty is sometimes seriously maimed on account of the options available online. Mostly seen in the B2C category, e-commerce websites procure the products from different sellers across the service area and publish price listings for the customers. Therefore, depending on the actual seller concern and the business performance of the website (also due to sale, promotional activities etc.), there is a wide range of price variations across websites. The savvy customer will typically look around for better options and select the best combination of price, warranty, delivery options, payment options etc. Therefore, and also since the personal business touch is missing, there is limited room for brand loyalty and the best option gets rewarded.
But recent attempts at establishing customer relations through premium membership cards, privileges for old customers, and so forth have brought some degree of loyalty back to the e-commerce universe. At this point, the brand value completely depends on the price attractiveness, delivery speed and reliability and performance history specific to each and every customer.
1.4 Evaluation of ecommerce business of fashion and designed bed sheet and flat sheets business:
The ecommerce process is based on a specific framework including sense of belonging, access to resource, social skills, trust and social networks.
Lower social capital
According to Mason, Carter and Tagg (2011), the ecommerce has enhanced less activity in diverse communities. Based on the market research of the popular ecommerce organization it has been found that more than 30,000 customers have accessed the ecommerce sites regularly. Therefore, they trust those ecommerce websites and their involvement in the community projects and friendship improves social capital.
It has been observed that popular bed room accessories brands often give discounts top retain customers and attract new customers. As stated by Ashraf, Thongpapanl and Auh (2014), I Love Linen and Amara have given 30% to 40% flat discounts to increase sales and retain existing customers. Amara is a family based brand; therefore ecommerce promotion increases revenue and brand value. On the other hand ecommerce has imported foreign products for the customers in time. Therefore the customers have got the opportunity to purchase foreign products.
The ecommerce has maintained good customer relation so that customer can trust on them. Import and sales of the foreign products has triggered the profit margin of the organization but trust is the key aspect in this business (Jones et al.2014). The ecommerce organization has to ensure that the payment process is secure and the product will be delivering within proposed time. Therefore the trustworthy relationship may increase the brand value of those international brands.
It has been found that ecommerce websites often dependable on the social networking sites for express their promotional activities. Sometimes the ecommerce sites have developed videos and uploaded the video in YouTube so that the customers can visualise the design and size and speciality of the fabric used in bedcover or mat (Yuen, Yeow & Lim, 2015). The sharable link of the website also helps the customers to directly enter to the product segment. Apart from that the social networking promotion is cost effective and efficient enough to attract the customers. Therefore, cost effective promotional strategy also decrease the price of the product comparatively from the retail stores.
Business research Proposal Management is based on the theoretical knowledge about the impact and ecommerce on the imported fashion and designed bed sheet and flat sheets business in Australia. The researcher has taken help of different books and journals to understand the importance of ecommerce on the bedroom accessories business. The learner has developed clear concept of ecommerce and also expressed the impact of ecommerce on the business devilment and imported product. This secondary data will help the researcher in further progress of the research. When considered particularly for the fashion industry, there is an imminent need for the growth of business in alternative markets. Due to the unavailability of franchises and independent physical store fronts for most fashion start-ups or budding companies, they need to target the market in e-commerce. The business implications related to adoption of e-commerce topologies are huge as they create an unprecedented improvement in client base. Hence all retailed stores must focus on upgrading their marketing strategy by launching online platform that will attract more customers and will help in earning higher revenue. There is a number of research instruments to arrive at the correct marketing mix in terms of demand and target audience that is right for the fashion industry, so to speak. The learner has concluded that the correct balance of retail or physical franchisees and online business fronts is required considering the universal advantages and disadvantages of e-commerce.
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