Why Multiple Supply Chain Networks in the Retail and how does it help?

Reach is the mantra for the companies to garner mpore sales. TV has added that dimension of awareness to that prospective buyer in that area where retail was only a small shop around the corner. Not to forget the fact that the retailler from this town travels to the nearest city in search of newer products to attract more consumers. The nearest city guy travels to the BIG city to do the same. Word of Mouth (WOM) is very rampant in these areas as everybody knows everybody!!

Multiple channel works brilliantly!

Ultimate aim is to increase sales and hence revenue: A single channel may not be able sustain revenue growth ( also flow of goods) and hence by resorting to multiple channels one has access to a wider audiance for your products and hence greater share of the market. In addition the purpose of presenting the product through multiple channels is to increase the chances of capturing the customers attention and hence increase the probablity of the customer actually buying the product.

I feel helps the entrepreneurs and organizations venturing into the retail space. It helps retailers to look at new channels as a penetration and growth strategy. Multi Supply Chain networks also helps the retailers who are re-positioning and targeting new audiences....

Multi Supply Chain network also helps the retailers to evaluate the various formats available based on their business and financial objectives. This forms a crucial aspect of the overall business strategy as the costs involved are very high. Therefore the retailers go for Multiple Supply Chain Networks...I hope this answers your question Shailena..

Shailena you have a valid question. what I understand out of my experience is that the companies go for Multi channel retailing to increase their share of the customer’s wallet and expand across consumer segments. Recent studies of consumer shopping behavior indicate that multi-channel shoppers show a significantly higher value and frequency of purchase than single channel shoppers. Over 65% of online shoppers also use catalogs and 60% of retailers found multi-channel customers more profitable than single channel buyers.