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Chapter 1 Introduction介绍
1.0 Background背景
报告显示，2014年中国电子商务市场交易规模为12.3万亿元（人民币），2018年交易规模预计达到24.2万亿元（人民币）。其中，网上购物渗透率社会消费品零售总额中的10％，增长率为48.7％，是推动电子商务市场发展的中坚力量，其中O2O业务增长率为42.8％，是新的力量。在当前中国经济发展中不容忽视（Xiao，Wang，Lenzer和Sun，2017）。目前，已有43％的中国企业同时开展线上线下业务。例如，阿里巴巴实施离线战略，通过投资银泰业务和综合运用银泰商城店，商品和会员数据，打破零售业发展的困境; JUMEI，京东，VIPSHOP等电子商务企业也开设了线下零售体验店，以促进线上线下互补发展。万达集团与百度，腾讯合作成立万达电子商务，通过利用自身强大的商业地产和零售店资源整合信息，使其形成网上消费，线下体验购物闭环（ Xiao，Wang，Lenzer和Sun，2017）。
Report showed that the size of transaction of China's e-commerce market in 2014 was 12.3 trillion yuan (RMB), the size of the transaction is expected to reach 24.2 trillion yuan (RMB) in 2018. Among them, the penetration rate of online shopping in the total retail sales of social consumption goods was 10%, the growth rate was 48.7%, it is the backbone to promote the development of the e-commerce market, of which O2O business growth was 42.8%, it is the new force that can not be ignored in current Chinese economic development (Xiao, Wang, Lenzer and Sun, 2017). Currently, there are already 43% of Chinese enterprises which carry out online and offline business at the same time. For example, Alibaba carry out offline strategy, through investment in Yintai business and comprehensive use of Yintai mall stores, data of goods and members to break the plight of development of the retail industry; JUMEI, Jingdong, VIPSHOP and other e-business enterprises have also opened offline retail experience shops to promote online and offline complementary development. Wanda Group combined with Baidu, Tencent to set up Wanda e-commerce, through the use of its own strong line of commercial real estate and retail store resources to integrate information, so that it has formed online consumption, offline experience shopping closed-loop (Xiao, Wang, Lenzer and Sun, 2017).
进行在线零售是将线下零售商的原始业务扩展到网络。网络渠道可以经济有效地完成交易。然而，传统零售与网上零售的相互融合并不顺畅。一般而言，传统零售商所持在线零售业务的现状并不乐观，大多数零售公司面临投资回报率低，盈利前景不佳等挑战。绝大多数知名线下零售商开设网店的渠道策略都不成功（Huang，Pan和Liu，2017）。To carry out online retail is the extension of the original business of offline retailers to the network. Network channels can be cost-effective to complete transactions. However, mutual integration of traditional retail and online retail is not smooth. In general, the current status of online retail business carried by traditional retailers is not optimistic, most retail companies face low return on investment, poor earnings prospects and other challenges. The channel strategy of vast majority of well-known offline retailers who have opened online stores is not successful (Huang, Pan and Liu, 2017).
线上线下组合拓宽了原有的营销渠道，企业内外的有限资源将被重新配置，在此过程中，可能存在资源抢劫，即渠道冲突现象。 Brynjolfsson和Rahman（2009），Ansari，Mela，Neslin（2008）发现，渠道冲突问题是企业在拓展网络营销以进行网络营销时面临的最大问题。原始实体渠道的客户群迁移到网络渠道，因此线下商店的销售转移到在线商店，实际上对企业的整体销售和绩效改善几乎没有影响（Brynjolfsson和Rahman，2009; Ansari，Mela，Neslin） ，2008）。此外，为了尽快为在线渠道开辟出口，大多数传统零售商采取了一系列不正确的营销策略。这种策略不仅培养了消费者不良的消费习惯，例如，消费者只愿意通过网络渠道购买产品，如果不能通过网络渠道购买产品，他们也不愿意通过网络渠道购买，导致替代效应（Cassab和MacLachlan，2009年）。Online and offline combination broadens original marketing channels, limited resources within and outside an enterprise will be re-configured, in the process, there may be resources robbed, that is, channel conflict phenomenon. Brynjolfsson and Rahman (2009), Ansari, Mela, Neslin (2008) found that the problem of channel conflict is the biggest problem faced by enterprises in expanding online marketing to carry out network marketing. Customer groups of original entity channels migrate to network channels, so that sales of offline stores is transferred to online stores, which in fact has little effect on the overall sales and performance improvement of enterprises (Brynjolfsson and Rahman, 2009; Ansari, Mela, Neslin, 2008). In addition, in order to open up an outlet as soon as possible for online channels, most of traditional retailers have taken a series of incorrect marketing strategy. This strategy not only cultivates consumers’ bad consumption habits, for example, consumers are only willing to buy products through online channels, if they can not buy products through online channels, they are also not willing to purchase through online channels, resulting in substitution effects (Cassab and MacLachlan, 2009).
Suning was founded in 1990, it was one of China's largest electrical appliance distributors with more than 1,600 offline stores. In order to deal with the impact of e-commerce on sales of offline stores, Suning began to implement O2O strategy in 2013. Choi, Chen and Chung’s (2017) research on Suning indicated that O2O strategy only made Suning’s original consumers transfer to the online shops, the consumer growth of the offline stores stagnated, the overall marketing revenue growth rate was not as what was expected. Considering from Figure 1, since Suning officially implemented O2O strategy in 2013, proportion that its online sales revenue accounted for in the total revenue increased from 21.1% in 2013 to 42.2% in 2016, proportion of the off line sales revenue in the total income dropped from 78.8% in 2013 to 57.8% in 2016, showing that after the implementation of O2O strategy, Suning’s online income increased significantly, while the offline income growth was stagnant or even reduced, which proved that there was a channel conflict phenomenon in Suning’s O2O strategy, part of Suning’s offline customers and new customers were transferred to the online stores. Huang, Pan, Liu (2017) believed that Suning O2O coordination marketing failed to be implemented well, the O2o only made part of the customers and new customers transfer from offline consumption to the online consumption, Suning's O2O did not improve consumers’ amount and frequency of spendint in Suning's stores, and it did not bring more new consumers, namely, the O2O did not bring substantial growth in overall income for Suning.
1.2 Rationale
1.2.2 Theoretical significance
According to the theory of consumer multi-channel choice behavior, consumers will compare different channels, if different channels bring customers different perceptions, it may produce customer migration behavior, eroding original channels to result in substitution phenomena (Verhagen and Dolen, 2009) However, many studies have also proved that there is coordination effect between online and offline channels (Avery, Steenburgh and Deighton, 2009. How retailers using multi-channel strategy achieve channel coordination performance is the biggest problem in online and offline channel integration (Verhagen and Dolen, 2009; Avery, Steenburgh and Deighton, 2009). According to 4P marketing theory, product strategy, promotion strategy, price strategy will affect the choice of consumers for online and offline channels to lead to customer migration. It is visible that substitution effect may be due to inconsistencies of online and offline channel marketing strategies.
Based on the theory of 4P marketing mix, this study combined with the theory of coordination and the theory of multi-channel customer behavior to study multi-channel coordination marketing strategy, the theoretical significance of this study was not only from a theoretical level to analyze causes of channel conflict and channel coordination, but also from a theoretical level to explore how enterprises develop marketing strategies to obtain multi-channel coordination effect.
Based on the theory of 4P marketing mix, this study will combine with the theory of coordination and the theory of multi-channel customer behavior to study multi-channel coordination marketing strategy, the theoretical significance of this study is not only from a theoretical level to analyze causes of channel conflict and channel coordination, but also from a theoretical level to explore how enterprises develop marketing strategies to obtain multi-channel coordination effect.
1.2.2 Practical significance
Challenges for enterprises to take O2O strategy come from both inside and outside, in order to obtain O2O coordination effect, enterprises need to develop more complex marketing decisions. This study aims at the core issue of multi-channel retailers - multi-channel co-marketing to explore the channel integration of multi-channel retail enterprises, thus it has some practical significance (Huang, Pan and Liu, 2017), which is embodied in the following aspects. First, multi-channel marketing strategy should take customers as the core. This study aims at multi-channel consumer to carry out research, which can help Suning to better understand consumers’ psychological perception for online and offline marketing strategies. Second, the research on the coordination of online and offline marketing strategies can help Suning to realize that online and offline channels are not independent, and there is a certain relationship between the marketing strategies of different channels. Third, this study will be conducive to improving the degree of attention that the traditional retailer- Suning’s paying to channel integration, prompting this kind of enterprises to focus on the coordination between different channels.
