Sales Structure Development for Consumer Electronics Retail Chains in Albania

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Sales Structure Development for Consumer Electronics Retail Chains in Albania International Journal of Business Marketing and Management (IJBMM) Volume 3 Issue 6 June 2018, P.P. 10-14 ISSN: 2456-4559 www.ijbmm.com Sales Structure Development for Consumer Electronics Retail Chains in Albania Sokol Luzi1 1(PhD Candidate, Faculty of Economics/ University of Tirana, Albania) ABSTRACT: The study investigates how sales structures of consumer electronics chains has developed in Albania during the recent years. A case study research method applies to generate understanding of the main sales channel used, taking in consideration the periods of developing of these sales channels and how these channels combine with each other. The study provided information in two main sections including an overview of the main consumer electronics chains in Albania and their sales structure, how their customers use this sales structure. The case study results mentioned that consumer electronics retailers in Albania are just now developing online sales. Results showed that customers use online channel only to get information and transactions closes in the physical store. Main implications of this study relates to creating an omni-channel structure, in order to make the boundaries between sales structures less visible to the end consumer. Through this approach retailer will have the opportunity to communicate the same concept by using more sales channel to reach their customers. KEYWORDS: Online Sales; Omni-Channel; Retail I. Introduction Consumer Electronics is one of the most developed sales structure in Albania. This retail industry has been present in Albania since the fall of communism regime, mostly through the usage of wholesale channels and warehouses. This situation was present until 1993, where the first consumer electronics shops opened in Tirana. This was the first attempt to start selling these products taking in consideration retail concepts. With the opening of the first big shopping mall in Albania, QTU, the situation changed drastically, as currently retailers entered in a new space of selling. Currently there are several chains operating mainly in Tirana and major cities. Currently the competition presents within the brand portfolio these channels are working with. Each company tries to have an exclusive brand to work with and all marketing and promotion activities relates mostly to the development of this brand. This paper uses the case study design research method. The study takes in consideration the big consumer electronics retailers in Albania. The main objective was to understand how their sales structure has evolved during the years. All the gained information provides data to understand the main sales channels used currently by these retailers and if there is any evidence to prove that they are going in the direction of an omni- channel sales structure. All this information should develop a proposed path to be follow through retail chains in order to organize their sales structure. The study aims to analyze the B2C market structure, without taking in consideration the B2B structure. II. Literature Review An important element to consider when choosing the proper sales structure of a retailer is the development of consumer experience. In the daily life, buyers tend to shop by using several sales channels simultaneously, where they can search the product online, but the final product purchase and withdrawal process takes place in the physical store [1]. Another important issue with regard to the integration of sales channels is the maintenance and consumer satisfaction. By providing unified information across all sales channels, the firm can create the same sales experience for its customer[2]. Organizing and developing the company to unify the information requires coordination of the strategy by taking into account the differences that may exist between different sales channels. In this matter, the information should not be the same but unified. International Journal of Business Marketing and Management (IJBMM) Page 10 Sales Structure Development for Consumer Electronics Retail Chains in Albania This is because each of the sales channels offers something that the other channel do not offer. Sales channel more than identical should be complementary to one another. Creating a synergy and coordination between the various sales channels contains a whole set of challenges [3]. One of the most important challenges relates to the company's technological development. Another important element that favors the integration of physical and online sales channels is to increase profitability [4]. In this regard, the process of integrating sales of two channels in itself has a synergistic effect. This means that the sales realized by the integration of the channels together, will be greater than the sales realized by the separate operations of these two channels. Such a logic suggests that sales channels have a higher value when are interconnected with one another. Normally, the existence of sales channels starts with the physical presence of the business, so the addition of new channels is perceived as an added value of the firm in the eyes of the consumer and not as a separate channel and unrelated to the physical store. This reasoning elaborates further by estimating that in most cases businesses include both channels to create a diversification and greater reach of consumers that are inclined towards technology and the developments that it brings. In this way, if the firm has an existing customer base, now with online sales channels it can also reach another group of consumers who prefer to shop online rather than go to the shop premises of the firm. Meanwhile, one of the most controversial issues regarding the development of the online sales channel has to do with the level of trust the consumer has to invest in the firm. The problem has to do with the personal data involved in the online purchase transaction process. In this regard, one of the most effective strategies to avoid this problem is related to the creation and combination of transactions that go from sales to the physical store in online sales and vice versa [5]. This means that a consumer will be more willing to buy online if the physical store staff first propose this option. In addition, firm perception as a single entity is another element that emphasizes the importance of integrating sales channels[6]. The presentation the sales channels in a similar way, following branding and corporate procedures, creates the feeling to the customer that they are buying from the same company. In this context, sales channels are becoming components of the overall sales strategy of the company. This reasoning brings constant advantages to the firm as the customer creates different behaviors in each sales channel. They share data in the online store that would find it very difficult to share in the physical store. In this way, companies have the possibility to learn in a wider form their customers‟ perceptions and behaviors, through the combination of the information and transactions arranged in each of the sales channels. Interaction with the sales channels is something perceived for granted from the customer, as long as they receive the information that company has more than one sales channel[7]. The process of switching from one sales channel to another by the customer during their purchase defines as "showrooming" [8]. This is a way that customer uses to collect information before deciding. However, the importance of perceiving as a single channel should extend further to the company itself, including the whole flow of information generated by all channels. For this reason, it is important to apply a strategy, that is fluent and there is no interruption in communication with the customer regardless of channel passage [9]. This leads to the connection of sales channels to predict potential situations when the customer can change the channel and take the necessary technological actions to update the information in all other channels of the company. III. Research Methodology The aim of this research is to generate understanding of the sales structures used by consumer electronics retailers in Albania. The research objective are to explore the way consumers buy product through these retailers. The study aim to provide evidences of omni-channel sales structures and the way this structure has affected the industry players. To present a revelatory study the principles of case study design will be used [10]. Qualitative interviews and secondary sources used to gather data and information from a several consumer electronics retailers. A case study is appropriate when researching “the complex processes of contemporary marketing management” such as evolvement of sales structures and customer perception of the omni-channel of the retailer [11]. The purpose is not to generalize to any population but “to a real world that has been uncovered” [12]. International Journal of Business Marketing and Management (IJBMM) Page 11 Sales Structure Development for Consumer Electronics Retail Chains in Albania The study conducts within well-known retailers of consumer electronics in Albania, which have a consolidated position in the market. Businesses taken in question are the top five retailers in the consumer electronics industry. These companies covers major part of the market, providing important insights in terms of customer perception. The study conducts in September 2017. In order to avoid incomplete and vague information, we did the interview in the company of the interviewer,
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