(Luận văn thạc sĩ) 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 CONTENTS 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 1.1 International distribution 1.1.1 International distribution channels 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 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 iii 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 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 iv 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 APPENDICES 114 iv LIST OF FIGURES Figure 1.1 Five alternative consumer channels 10 Figure 1.2 Alternatives in omnichannel retail 28 Figure 1.3 Multi-channel vs omni-channel .34 Figure 1.4 Omni-channel supply chain in retail .37 Figure 1.5 The ―traditional‖ supply chain 38 Figure 1.6 Fundamental effects of e-commerce engagement on a traditional retailer‘s supply chain 39 LIST OF TABLES Table 1.1 Evolution of Omnichannel 21 Table 3.1 Characteristics of participants 80 v LIST OF ABBREVIATIONS Abbreviations In full meaning B2B Business to Business B2C Business to Customer BOPIS Buy-online-pick-up-in-store D2C Direct-to-consumer IT Information technology O2O Online-to-offline OC Omni-channel OCR Omni-channel retail QR code Quick Response code