International practices in operating omnichannel supply chain and lessons for vietnamese retail enterprises

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY *** MASTER THESIS INTERNATIONAL PRACTICES IN OPERATING OMNICHANNEL SUPPLY CHAIN AND LESSONS FOR VIETNAMESE RETAIL ENTERPRISES Major: International Economics LUONG CANH TOAN Hanoi – 2023 MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY *** MASTER THESIS INTERNATIONAL PRACTICES IN OPERATING OMNICHANNEL SUPPLY CHAIN AND LESSONS FOR VIETNAMESE RETAIL ENTERPRISES Major: International Economics Code: 8310106 Full name: Luong Canh Toan Supervisor: Assoc Prof Dr Nguyen Thi Tuong Anh Hanoi - 2023 i DECLARATION OF AUTHORSHIP I , Luong Canh Toan, affirm that this research work titled “International Practices in Operating Omnichannel Supply Chain and Lessons for Vietnamese Retail Enterprises” was generated from my own research I declared that: This thesis complied with the requirements of the Faculty of Postgraduate Studies, Foreign Trade University All the works by other authors used in the study were cited with the acknowledgement This thesis has not previously been submitted to any organization before Signed: ………………………………………………………………… Date: ………………………………………………………………… ii ACKNOWLEDGEMENTS My thesis would not have completed without the supports from many people Firstly, words cannot express my deep appreciation to my supervisor, Assoc Prof Dr Nguyen Thi Tuong Anh, for her patience, support, and feedback during the research process I could not have completed my thesis without her encouragement and generous support Secondly, I’m extremely grateful to thank all staff and lecturers of the Faculty of Postgraduate Studies, Foreign Trade University Their knowledge, expertise and guidance are valuable for my thesis Accordingly, I am deeply indebted to the Management of the studied companies and the participants who were willing to participate in my study Finally, I would also like to thank my family for their love and support during this process Without them, this journey would not have been possible ii TABLE OF CONTENT DECLARATION OF AUTHORSHIP i ACKNOWLEDGEMENTS ii LIST OF FIGURES iv LIST OF TABLES iv LIST OF ABBREVIATIONS .v ABSTRACT vi INTRODUCTION CHAPTER THEORIES ON OMNICHANNEL SUPPLY CHAIN .8 1.1 International distribution 1.1.1 International distribution channels .8 1.1.2 Selection of international distribution channels 12 1.2 Omni-channel in international retail 18 1.2.1 Definition .18 1.2.2 Evolution of omnichannel 20 1.2.3 Omni-channel retailing .26 1.2.4 Multi-channel vs omni-channel 32 1.2.5 Omni-channel retail (OCR) strategy 35 1.3 The impact of omni-channel commerce on the supply chain 37 1.3.1 Processing customer orders 37 1.3.2 Expanding the portfolio for better customer engagement 38 1.3.3 Impacts on warehouses and IT 39 1.4 Opportunities and challenges for omni-channel retail .40 1.4.1 Opportunities .40 1.4.2 Challenges 41 iii CHAPTER CURRENT SITUATION AND EXPERIENCES OF OMNICHANNEL SUPPLY CHAIN AMONG THE RETAILERS IN THE WORLD .45 2.1 Omnichannel retailing in the United States 45 2.1.1 Current situation of omnichannel retailing in the United States 45 2.1.1.1 Nike 46 2.1.1.2 Walmart 47 2.1.1.3 Sephora 48 2.1.1.4 Nordstrom .49 2.1.1.5 Best Buy 49 2.1.1.6 Macy's 50 2.1.1.7 Target 51 2.1.2 Evaluation of omnichannel retailing in the United States 52 2.1.3 Lessons learnt from the retailers in the United States 53 2.2 Omnichannel retailing in China 55 2.2.1 Current situation of omnichannel retailing in China 55 2.2.1.1 Alibaba Group (Tmall and Taobao) .57 2.2.1.2 JD.com 57 2.2.1.3 Suning 58 2.2.1.4 Burberry .58 2.2.1.5 Watsons (AS Watson Group) 59 2.2.2 Evaluation of omnichannel retailing in China .59 2.2.3 Lessons learnt from the retailers in China 62 2.3 Omnichannel retailing in Japan 64 2.3.1 Current situation of omnichannel retailing in Japan 64 2.3.2 Evaluation of omnichannel retailing in Japan .66 2.3.3 Lessons learnt from the retailers in Japan 68 2.4 Omnichannel retailing in Korea 70 2.4.1 Current situation of omnichannel retailing in Korea 70 iv 2.4.2 Evaluation of omnichannel retailing in Korea 71 2.4.3 Lessons learnt from the retailers in Korea 73 CHAPTER SUGGESTIONS TO DEVELOP OMNICHANNEL SUPPLY CHAIN OF VIETNAMESE RETAILERS 75 3.1 Overview of omnichannel retailing in Vietnam 75 3.1.1 Current situation of omnichannel retailing in Vietnam .75 3.1.2 Difficulties of omnichannel supply chain among the retailers in Vietnam 76 3.1.3 Case studies of retailers in Vietnam 78 3.1.3.1 Background 78 3.1.3.2 Challenges of transforming to omnichannel retailing 80 3.2 Suggestions to develop omnichannel supply chain of Vietnamese retailers 91 3.2.1 Mobile commerce focus .91 3.2.2 Click-and-Collect services 92 3.2.3 Inventory visibility .93 3.2.4 Unified customer data 94 3.2.5 Social Commerce 95 3.2.6 Virtual try-on technology 96 3.2.7 Seamless payment options 97 3.2.8 Same-day delivery .98 3.2.9 In-store technology 98 3.2.10 Data analytics and AI 99 3.2.11 Customer loyalty programs .101 3.2.12 Customer service integration 101 3.2.13 Synchronize marketing efforts 102 3.2.14 Continuous improvement 103 CONCLUSION 105 REFERENCES 106 v APPENDICES 114