CASE STUDY - OMNI CHANNELASSIGNMENT "POPULAR

BOOKSTORE: EVOLVING INTO AN OMNI-CHANNEL RETAILER"

LGSC 6014 – Logistics and Supply Chain Management II

Submitted By:

Zakira Phillips – 620091398

In the case study "Popular Bookstore: Evolving into an Omni-channel Retailer," Popular was
a typical brick-and-mortar bookstore facing competition from internet retailers. Popular opted
to become an omnichannel retailer to remain relevant in the quickly changing retail industry,
allowing customers to purchase online, in-store, or via a mobile app.
For the purpose of this analysis Omni-channel will be defined as “a direct to consumer (D2C)
business model where all sales channels ranging from online, mobile, telephonic, mail order,
self-service, and physical retail establishments are aligned, and fulfillment processes integrated
to provide consumers with a seamless shopping experience in alignment with the company’s
brand proposition.”

1) Analyse Popular Bookstore's competitive position in Singapore.

Popular Bookstore has a substantial market share in Singapore's book retail industry, giving
it a competitive advantage. In 2020, Singapore had a few traditional brick-and-mortar retail
bookstores, including Times, Kinokuniya, and Popular. Popular has generally benefited
from the following advantages: a substantial market share, reliable financial resources, a
large customer base, brand recognition, and consumer loyalty because the physical retail
sector has few competitors.

Popular has a large customer base, comprised mostly of students because its branches are
located strategically near schools and tuition centres; which distinguishes them from the
other two typical brick-and-mortar establishments. Times Book Store outlets are found
primarily in airports, whereas Kinokuniya only has three locations in Singapore. As a result,
it was the most accessible and recognizable of the three major traditional bookstores. All
three players are well established in the physical bookstore industry and have strong
customer loyalty; thus, the threat of new entrants in the physical bookstore industry is low
because entering at this stage would put the new company at a significant disadvantage
because it would have none of the previously mentioned advantages of the older
bookstores.

However, new firms have lately opted to enter the bookselling industry as online
competitors. With the emergence of e-commerce, Popular faces competition from online
bookstores that compete with physical ones; in reality, by 2020, both Times and
Kinokuniya will have online stores, and there are also dominant solely eCommerce
competitors like Amazon and Book Depository. Due to the absence of leasing fees, online
businesses enjoy a significant pricing advantage. They also advertise parallel imports (the
identical book items from distributors in various areas, at different rates on its platform3),
allowing buyers to make the ultimate purchase decision.

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 The COVID-19 epidemic has undoubtedly caused a paradigm shift in customer behaviour
and purchase patterns in book sales. More customers have embraced digital commerce due
to its convenience in the face of lockdowns and its ability to increase connectivity for work
and school. People no longer need to acquire hard copies of books, though they may obtain
a physical copy online. Popular had no choice but to investigate the possibility of having
both physical and online retail to enhance its market share and remain relevant. Customers
will have a more seamless purchasing experience thanks to the omnichannel approach.

In terms of actual bookstores, purchasers' negotiating power is relatively modest. They have
limited access to information such as book pricing because physical bookshops do not
freely display their prices online, except during sales. Buyers' negotiating power will
improve as online bookshops gain popularity. Buyers would become less reliant on
traditional channels (such as physical bookshops) and purchase books online instead.
Webrooming, where buyers prefer to research online and purchase offline (ROPO), is
gathering knowledge on the internet before shopping in-store. While showrooming is the
reverse process of gaining information in the store before purchasing. Companies with
omnichannel systems must have the same price online and offline. This increased price
transparency allows consumers to compare prices across firms; if a competitor undercuts
Popular's pricing in one channel, it can lead to lost market share. Overall, developing an
omnichannel strategy requires a business to consider the competitive landscape and adjust
its approach accordingly; to stay competitive and protect its market share.

2) Is Popular's physical store network still relevant to their customer base and how should it
adapt as consumer behaviour changes?

In Singapore, hardcopy books thrive despite tough competition from online booksellers.
As many millennials and their parents report purchasing hardcopy assessment books from
the shop, there is still a demand for popular bookstore services. It is also worth noting that
the bookstore generated more than half of its sales from non-book offerings such as
stationery, art supplies, and technology equipment. Furthermore, Popular Bookstore's
physical stores remain relevant to its client base since many consumers prefer to browse
and purchase books in a physical store.

However, as consumer behaviour evolves and customers become more comfortable with
online shopping, Popular Bookstore plans to alter its physical store network to remain
relevant. Chou states that Popular has a strategy of constantly analyzing the performance
of each retail outlet to close those that are failing; this may include: lowering the number
of physical storefronts and transforming some into smaller, more specialized businesses.
The company expects to improve the customer experience by broadening its product mix
to include: food, beverages, craft and art materials and incorporating technology into the

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 in-store experience by including technological gadgets and through their new e-commerce
store launched on the local shopping platform Lazada in May 2020.

3) How would an omni-channel strategy help popular to stay relevant?

An omnichannel approach will help Popular Bookstore stay relevant by providing

customers with a seamless shopping experience across several platforms. The company
will gain a better understanding of client preferences and behaviour by implementing an
omnichannel strategy, allowing it to tailor its offerings and improve the customer
experience in the following ways:
• Popular's flexibility would increase by utilizing Omni-channel supply chains. These
supply chains intend to be more flexible and agile, allowing businesses to adjust to
changing client demands and preferences more swiftly. Chou refers to Popular’s plans
to develop its online shop and engage with customers on social media, which allows
the firm to track client preferences and interests.
• Companies with omnichannel supply chains can see their inventory levels more clearly
and make more informed decisions about where to deploy resources. The company
proposes to do this by increasing site traffic through the use of QR (Quick Response)
codes. These IDs could be used to manage inventory and stock levels across several
channels, improving visibility and ensuring that items are accessible when customers
need them.
• By combining several channels and technology, omnichannel supply chains help firms
coordinate their activities more efficiently, reducing the risk of stockouts, overstocks,
and other inefficiencies. The business might improve coordination by allowing
consumers strolling the book aisles to scan a book to acquire information about the
author's prior works or the year's top-selling books in that category or by using video
trailers of books adapted to films.
• Customer satisfaction may increase by providing a uniform and convenient customer
experience across all channels. Consumers could also access book reviews or join
discussion forums; as a form of community building that makes the whole experience
more emotionally attractive, ultimately influencing customer purchase decisions.
• Omnichannel supply chains may help businesses achieve considerable cost savings By
simplifying processes and minimizing waste. For example, an omnichannel strategy
would allow Popular to optimize the size of its stores and retain less inventory in each
location.
Overall, omnichannel supply chain solutions may improve consumer experiences, boost
efficiency, and increase revenue. Popular's plan to remain competitive in the retail
environment included fulfilment strategies. These strategies are listed below:
• They maintained control over the customer experience and guaranteed uniform quality
across all channels by managing every step of the fulfilment process internally;
thisallowed the business to retain consumers and gain their loyalty in the industry.

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 • Moreover, it provided consumers with the choice of picking up their online orders in-
shop or delivery from a nearby store by employing its existing physical stores as
fulfilment hubs. This improved client convenience and assisted the business in
remaining competitive in a retail environment that was continuously changing.
• It was also able to concentrate on its core skills and cut the expense and complexity of
running a fulfilment operation by outsourcing the fulfilment process to a third-party
operator. Due to its affordable pricing and quick delivery, the business remained
relevant even as client demands rose.
• Lastly, it saved expenses and risks related to retaining inventory by drop shipping; it
provided more items to its clients and acted promptly to change customer expectations.
• The business effectively transformed into an omnichannel retailer and offered its
consumers a seamless and convenient shopping experience by carefully weighing its
choices and selecting the appropriate fulfilment models for its omnichannel strategy.

4) What are the risks associated with popular implementing an omni-channel strategy?

Popular Bookstore faces several risks when implementing an omni-channel strategy,

including:
• Integrating multiple channels and systems can be technically difficult, and there is a
chance that system failures or data breaches could compromise customer information.
• The cost of implementing an omnichannel approach can be high, and there is a chance
that Popular Bookstore won't get its money back.
• Uncertainty among customers: Disparate channels' inconsistent experiences may
confuse customers and damage Popular Bookstore's reputation as a brand.
• Its plausible that one channel would be preferred over the other when the demands of
offline businesses and internet presence are balanced.
• The omnichannel approach may be ineffective due to workers' resistance to change,
clients, or suppliers.
In conclusion, while implementing an omnichannel strategy presents several risks, it also
has the potential to provide Popular Bookstore with immense benefits. It is essential that
Popular Bookstore carefully considers these risks and takes steps to mitigate them.

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