Under the Impact of e-Commerce, the Operation Strategy of Physical

Clothing Stores

Zhehao Zhao

School of Economics and Management, Yanshan University, Qinhuangdao City, Hebei Province,066004, China

Keywords: Clothing, e-Commerce, Physical Stores.

Abstract: With the development of the Internet, the Internet era has brought great changes to all aspects of people's lives.

More consumers have changed from offline to online purchasing, which has brought great impact on physical

clothing stores under the impact of e-commerce. This paper mainly studies how physical clothing stores

should survive under the impact of e-commerce, By examining the present situation of China's clothing retail

sector, This study aims to understand the evolving trends within the physical clothing industry. Utilizing the

SWOT analytical framework, the study delves into the strengths, weaknesses, opportunities, and threats faced

by brick-and-mortar clothing stores. Notably, their strengths lie in offering customers the ability to touch and

see actual products, providing a personal shopping experience, and enabling customers to enjoy the pleasures

of shopping. However, the weaknesses of physical clothing stores are also evident, such as higher prices,

inconvenience in returns, and limitations posed by time and weather. Despite these challenges, physical stores

have an opportunity to attract consumer groups who prefer not to shop online and can capitalize on this by

offering exclusive promotions and discounts. A significant threat to physical clothing stores lies in the high

operational costs and the competitive pressure from larger physical stores. To counter these threats and

mitigate the impact of online clothing retailers, physical stores should focus on enhancing consumer

experience, optimizing store locations, improving service quality, exploring customized clothing options,

reducing product prices, and innovating their sales models.

1 INTRODUCTION

The rapid development of the Internet has improved

the national economy, but also increased the birth of

many emerging industries and increased the

employment rate of China's population. The network

age changed the way consumers buy, consumers have

changed from traditional online purchases to offline

purchases, online shopping means consumers can

never leave home and can buy clothing around the

world, not only saves time cost but also save the cost,

the appearance of clothing electricity to clothing store

brought a huge impact(Xiaowan, 2018).The objective

of this research is to examine the effective utilization

of inherent strengths and transformational strategies

by brick-and-mortar clothing stores in order to thrive

amidst the disruption caused by e-commerce.

Utilizing the SWOT analysis framework, this study

aims to identify the current challenges and

opportunities faced by physical clothing stores,

https://orcid.org/0009-0005-1853-3512

serving as a fundamental analytical approach to guide

their operations (Thomas L. Ngo-YeNan, 2014).

2 ANALYSIS OF THE CURRENT

SITUATION OF PHYSICAL

CLOTHING STORES

2.1 Analysis of the Current Situation of

Physical Clothing Stores

With the development of the economy and

technology, as well as the formation of new shopping

habits, e-commerce platforms have emerged rapidly,

and online sales have grown rapidly, which has

caused a huge impact on physical clothing stores

(Zhou Cheng,2018). At the same time, COVID-19

has become a catalyst for moving toward a new

digital and direct-to-consumer (D2C) retail model. At

Zhao, Z.

Under the Impact of e-Commerce, the Operation Strategy of Physical Clothing Stores.

DOI: 10.5220/0012936900004508

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 1st International Conference on Engineering Management, Information Technology and Intelligence (EMITI 2024), pages 289-294

ISBN: 978-989-758-713-9

289

present, Taobao has established a buyer application

center platform, and the technology mainly includes

"virtual wardrobe", "virtual fitting room" and "dream

holographic display cabinet", which is expected to

realize the DIY way of clothing purchase in the

future. With escalating technology support, the way

retailers provide their products and services has

changed fundamentally. According to Euromonitor,

the proportion of e-commerce sales in the global

apparel market has significantly increased

significantly from 9.7% in 2014 to 30.2% in 2022.

And in 2023, the highest proportion of online sales in

China is the clothing industry. The physical clothing

store the impact of e-commerce, the market share

ratio decreased. And under the influence of COVID-

19. It has improved in recent years, and the growth

rate has been steadily rising, keeping pace with e-

commerce.

As shown in Fig 1, it shows that before the

COVID-19 epidemic, e-commerce developed

rapidly, while the development of physical stores was

slow. During the COVID-19 outbreak, physical stores

even experienced negative growth. After the

epidemic, physical stores returned to normal

development in recent years, and the development

speed has become faster and the same as e-commerce.

Figure 1: Growth rate of retail sales of clothing, shoes and

hats in physical stores and online retail sales of physical

wear goods in China(Mi, 2023).

2.2 SWOT Analysis of Physical

Clothing Stores

2.2.1 Advantages and Disadvantages

Although the rapid development of clothing e-

commerce in recent years, clothing physical stores

still exist, because clothing physical stores

themselves have some advantages that clothing e-

commerce does not have. The biggest advantage of

physical clothing stores is that they can be able to see

the physical objects, which is the unique feature of

physical clothing stores and is not available in e-

commerce (Xiao Xiang, 2018). Consumers who often

shop on the Internet will find that the online publicity

pictures are usually seriously inconsistent with the

physical objects received, especially in the problem

of "color difference". The second advantage of the

clothing store is that consumers can experience it.

Consumers who buy clothes online usually encounter

such a problem that some clothes look beautiful, but

when the clothes are sent home to try on, they find

that they do not look good. The third advantage of

physical clothing stores is that consumers can enjoy

the fun of shopping. They may be very tired after the

purchase, but it is certain that consumers will be very

happy although they are tired.

The reason why the business of the clothing

physical stores is quiet in recent years is because the

clothing physical stores themselves have some

disadvantages and are inferior to the clothing e-

commerce problems. The biggest disadvantage of

physical clothing stores is that it is expensive.

Consumers usually find that physical clothing stores

of the same style are more expensive than online,

which is why more consumers will choose to buy

clothes online. Online clothing is cheaper because the

middle save a lot of middlemen cost, factory finished

clothes sold directly on the Internet, so natural prices

will be lower many, such as fruit clothing stores try

to reduce the middlemen price link, and then more

discount on the price, so choose in a clothing store to

choose and buy clothing consumers will have more.

The second disadvantage of the clothing store is that

it is inconvenient to return goods. When consumers

go home after purchasing clothes in the clothing store

and find some problems and want to return them,

merchants usually do not want to return them to

consumers for various reasons. The third

disadvantage of physical stores is that it is not as

convenient to buy clothes on clothing e-commerce.

Consumers who want to buy clothes in physical stores

have to face the "weather" and "time" factors. At the

same time, buying clothes online can usually save the

troublesome link of "bargaining".

2.2.2 Opportunity and Threat

Although the Internet has been popularized now,

there are still most consumers, such as the elderly and

consumer groups who like to visit shopping malls,

will still choose to go to physical clothing stores when

buying clothing (Zhang Yue, 2017). Usually,

consumers who like to go to shopping malls will go

to the supermarket and clothing store, and the

supermarket will buy a lot of snacks and daily

necessities, consumers will give up buying clothes in

EMITI 2024 - International Conference on Engineering Management, Information Technology and Intelligence

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clothing stores because things are too heavy and the

way home is very long, clothing stores can consider

the clothing purchased by consumers to be delivered

to their homes for free. Physical clothing stores are

also available.

Consider some activities to accumulate points and

then exchange goods at the end of the year, and carry

out more preferential activities to attract new

customers and grasp old customers at the same time.

Businessmen understand the truth that "the customer

is God", so it is necessary to solve the problems that

customers are worried about from the perspective of

customers, so as to increase more consumers.

Clothing e-commerce is the biggest threat to

clothing stores, clothing e-commerce currently

occupies the market at a lower price, clothing stores

If customers want to restore the hot business of the

past, customers still have to consider lowering the

price, but the cost of clothing stores is very large, not

only the layers of clothing middlemen, but also store

fees, electricity costs, water charges, staff fees, etc.,

the cost of physical stores is far greater than the cost

of e-commerce, so it is difficult for physical stores to

reduce the price of goods, clothing e-commerce is not

only low cost, but also large sales, because there is no

need to suffer To the geographical limit, no matter

how far away, consumers can buy, consumers will be

more, and the sales volume will be greater, but the

clothing physical store will be subject to geographical

restrictions, because the main source of clothing

physical stores is still local consumers, the number of

consumers is naturally much smaller than the number

of consumers of clothing e-commerce.(Su Zijie,

2017) There is also a serious threat to small clothing

wholesale malls within clothing physical stores, large

clothing wholesale malls are generally purchased

directly from manufacturers and carry out clear price

marking and unified management, which also reduces

the link of bargaining, but small clothing stores have

to go through the price increase of middlemen, and

many small clothing stores are not clearly marked

prices, and they have to carry out complex bargaining

links, so now the business of small clothing stores is

getting worse and worse, and the number is getting

smaller and smaller. In this era of the developed

Internet, the most dismal business in the clothing

industry is those small clothing stores, which are not

only threatened by clothing e-commerce but also by

large clothing wholesalers.

3 THE OPERATIONAL

STRATRATERY OF PHYSICAL

CLOTHING STORES

3.1 Fully Leverage the Advantages of

Physical Stores to Improve Quality

3.1.1 Improve the Consumer Experience

Clothing stores save consumers, from the

characteristics of clothing electricity, clothing stores,

and clothing electricity real difference is clothing

stores can immediately see and experience, this

electricity clothing electricity does not have the

advantage, so clothing stores from the important

perspective of "improving consumer

experience"(Wang Yong, 2016). Especially in today's

fast-paced society, the majority of consumers find the

process of trying on clothes to be cumbersome and

inconvenient. Consequently, they are reluctant to

engage in this activity. To address this issue, sales

staff are trained to recommend clothing that best suits

the consumer's preferences, thereby minimizing the

need for them to try on multiple items. Additionally,

sales staff employ tactful persuasion techniques to

encourage consumers to try on clothes and to gain a

deeper understanding of their preferences.

Typically, female consumers engage in extensive

shopping sessions; however, a scant number of small

and medium-sized brick-and-mortar clothing stores

offer a designated resting area. To enhance the

consumer experience and foster a perception that

shopping is a pleasant and enjoyable activity, clothing

retailers could introduce a cozy tea room within their

premises. This space could be furnished with

comfortable seating and equipped with amenities

such as complimentary teas, seasonal fruits, snacks,

and newspapers. By implementing such measures,

stores aim to attract a larger customer base by

providing a relaxing and welcoming environment.

3.1.2 Pay Attention to the Store Site Selection

The problem of "focusing on the location of stores" is

also a very critical thing for the physical clothing

stores. Choosing the right store is equivalent to half

of the victory. Clothing store best choice around there

are a lot of clothing store, perhaps merchants will

think such store competitiveness will be too big, but

it is on the contrary, because the local consumers at

the time of choose and buy clothes, generally go

around, there are a lot of clothing store to choose and

buy, almost unlikely to go around only one or two

Under the Impact of e-Commerce, the Operation Strategy of Physical Clothing Stores

291

clothing store shop to choose and buy, because

elimination, fee know only a clothing store around

will not necessarily have he want to choose and buy

clothes, so will choose a lot of clothing store nearby,

compare each other, and then choose and buy the

most satisfied clothing. So, if the location of the store

choice around there are a lot of clothing store, now

more from the style of clothing up and down some

kung fu, in many clothing stores can really attract

consumers is the style of clothing, businesses should

have a keen sense of "fashion", in the first time know

what the most popular style of clothing, seize the

opportunity to grab advanced purchase, so someone

can beat consumers, get more profits

3.1.3 Improving Service Quality

In order to enhance the quality of service in clothing

stores, it is imperative to create an atmosphere that

evokes a sense of warmth and familiarity for

consumers. Sales personnel should approach

customers from a consumer-centric perspective,

assisting them in selecting clothing that genuinely

suits their needs. Merely selling clothing without

considering the customer's fit and satisfaction is

insufficient. Engaging in such marketing practices,

which often involve pushing unsuitable items, is

unlikely to foster long-term customer loyalty.

A good salesman should have the ability to sell

clothes and turn customers back, but most so-called

gold salespeople don't have the latter ability power.

At present, most physical clothing stores still have a

problem of excessive enthusiasm. When consumers

step into the physical clothing stores, they will find

that some salespeople will always follow them and

introduce them constantly. Consumers have intended

to appreciate the clothes well, but the result is

destroyed by the overenthusiastic salespeople.

Consumers, when in need of assistance from sales

personnel, will initiate contact, and sales personnel

are encouraged to take a strategic position that

ensures visibility. Clothing boutiques should

prioritize enhancing their service delivery,

particularly in areas such as complimentary hem

modifications and regular ironing services. These

meticulous touches foster a positive impression

among customers, highlighting the advantages of

shopping in a brick-and-mortar store. Establishing a

friendly and respectful relationship, rather than a

mere transactional one, is key to fostering lasting

customer loyalty and fostering a sense of trust.

3.1.4 Take the Clothing Customization Route

Clothing e-commerce has had a profound impact on

brick-and-mortar stores, yet it's noteworthy that the

majority of online shoppers prefer not to purchase

expensive clothing items. Instead, they opt for more

affordable options priced below 500 yuan.

Conversely, fewer consumers opt to purchase

clothing priced over 1,000 yuan online. Given this

trend, clothing stores with substantial economic

resources may consider pursuing high-end

customization. Collaborating with renowned

designers and spokespersons can facilitate the sale of

exclusive, premium clothing, thus appealing to high-

end consumers. However, this high-end

customization route has its limitations. Firstly, it

requires significant financial backing. Secondly, it

targets a specific demographic of affluent consumers.

Therefore, smaller and medium-sized clothing stores

may opt to collaborate with niche designers, updating

fashion trends promptly and limiting production

quantities. This approach not only caters to middle-

income consumers but also resonates with some

consumers who value uniqueness and avoid

conformity.

3.1.5 Reducing Commodity Prices

Clothing store cost is much higher than clothing

electricity, because the vast majority of clothing

electricity is directly corresponding to the factory,

factory behind clothing, electricity sales directly, and

electricity contact wider consumer groups, with low

prices, rely on sales profit, and clothing stores are

usually by middlemen price and contact to most

consumer groups only local consumers, so the cost is

high, and low sales, so do not blindly with electricity

price war. Clothing physical stores can consider

canceling the middleman this link, directly from the

factory order, can choose to order to the factory or by

the clothing factory clothing samples, if the business

think it can, and then contact the factory to order in

large quantities, so as to save the cost of middlemen,

reduce the cost of clothing. Small clothing stores can

also consider the same as large clothing stores, to

clearly mark the goods and reduce the price to the

minimum, and refuse to bargain, so as to attract the

consumer groups who do not like the complex

process of "bargaining".

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3.2 The Operational Model of

Combining Physical and

e-Commerce

Clothing physical stores should consider changing the

original traditional sales model, because in today's era

of developed Internet, if only follow the original

traditional sales model, even if not squeezed out of

the clothing market by clothing e-commerce, it will

automatically choose to exit because of too little

profit(Hu Yangyang, 2017). It can be found that some

brands, such as Uniqlo, Handu Yishe, Semir, and

Adidas, not only have the offline market but also have

the online market, and the sales volume in the online

market is still considerable (Jinxin, 2018).So also

only take the traditional sales model of clothing stores

should change the single sales model, clothing stores

can do store also do electricity, online markets, and

offline markets, in reality, shop to sell their goods, but

also sell their goods on some shopping platforms,

online market and offline market integration can help

businesses get two benefits at the same time. Clothing

stores can also consider some social software for their

clothing-appropriate propaganda, such as WeChat,

Weibo, TikTok new clothing social software on some

photos or videos, in particular, for female consumer

groups, show the right clothing always can't help

buying impulse, and clothing stores can like delivery,

take online order, city free delivery, during the

holiday with some preferential goods and small

activities if take this way will attract the part like

online shopping and busy consumer groups(Wu

Yuxuan, 2014). In this era of rapid development of

the Internet, the traditional sales model of physical

clothing stores can no longer be unchanged. Physical

stores should be changed appropriately with the

development, so as to survive in the clothing

market(AbuShanab, 2009).

3.3 Summary

In general, in the face of the rapid development of the

Internet and e-commerce, physical clothing stores

continue to transform and upgrade. couture should

not only improve the quality of physical stores, but

also integrate into the current e-commerce

environment, and achieve the combination of online

and offline so that the physical clothing stores will

have a benign development.

4 CONCLUSIONS

This study focuses on the viability of brick-and-

mortar stores amidst the growing influence of e-

commerce. Through an examination of the current

state of China's garment retail sector, it employs a

SWOT analysis to delve into the strengths,

weaknesses, opportunities, and threats faced by

physical stores. Key strengths of clothing stores

include tangibility, the shopping experience, and the

enjoyment derived from it. However, they also carry

disadvantages such as higher prices, inconvenience in

returns, and limitations posed by time and weather

conditions. Among the opportunities, they present is

attracting consumers who prefer not to shop online

and conducting promotional activities. On the other

hand, the threats loom large with the escalating costs

and the competition from larger clothing stores that

pose a challenge to smaller ones. The findings of this

study hold significant guidance for the operators of

physical clothing stores, enabling them to

comprehend the evolving market landscape under the

impact of e-commerce. This knowledge can assist

them in devising effective strategies to enhance

consumer experience, reduce costs, improve service

quality, and ultimately maintain their competitiveness

in the highly competitive market.

The current research simply analyzes the current

situation of the market, without proposing more

innovative ideas

Future research endeavors may delve deeper into

the utilization of Internet technology by brick-and-

mortar clothing stores to facilitate digital

transformation. This may encompass the integration

of online and offline channels, the utilization of big

data analytics, artificial intelligence, and other

technological advancements. The aim is to enhance

the operational efficiency and customer satisfaction

of physical stores, ultimately fostering sustainable

growth and development.

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