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Acting as a business consultant to a Chinese fashion consortium, Fung Fashion, who are considering entering the UK fashion market, prepare a report which critically evaluates the ASOS (pureplay) and Next (Bricks & Clicks) retail models, focussing on the impact on their outbound logistics operations. You should then make recommendations to Fung Fashion to enable them to prepare for the outbound logistics element of their UK fashion retail market entry strategy.

Asos Plc.

The “advent of globalization as well as the recent developments in the fields of technology and innovations has much transformed the way the various business organizations transact their business in the present times” (Laudon and Traver 2013). It is “a reflection of this that the various business organizations in the present times in addition to the normal services provided by them also provides various kinds of online services to the customers” (Laudon and Traver 2013). It is “significant to note that in the present times the concept of e-commerce has gained much prominence” and the various customers often like the take the help of the online services provided by the various business organizations (Barnes and Hunt 2013). It is a “reflection of this that the various business organizations” take into consideration this particular requirement of the customers and provide online services to the customers (Barnes and Hunt 2013). This trend is generally seen as the result of the changing technological environment of the world and the willingness of the customers to take the help of the various kinds of recent technologies for the dispensation of day-to-day activities. Furthermore, the various e-commerce business organizations not only provide online and easy services to the customers but often provide home delivery to the customers (Barnes and Hunt 2013). This particular policy enables the customers to get the things which they need at their doorstep and they do not have to leave the comfort of their home. The concept of outbound logistics plays a significant role in the success attained by these organizations and it is generally seen that the effectiveness of the outbound logistics system by these organizations depends on the context in which they are being used. Furthermore, most of these e-commerce business organizations also provide the customers with the various kinds of offers like “payment on delivery” and others (Laudon and Traver 2013).

The company Asos Plc is the “United Kingdom’s largest online-only fashion retailer which has profited at the expense of store-based rivals” (Chambers 2018). It is significant to note that this particular business organization was founded keeping in view the changing buying patterns as well as the requirements of the customers and also their growing insistence to opt for the “online services provided by the various e-commerce business” organizations. The business of the concerned business organization has seen a considerable amount of rise “in the present times and it is a reflection of this that the company rose 23 percent to 300.9 million pounds ($429 million) in the four months ended Dec. 31” (Chambers 2018). Furthermore, the shares of the organisation saw an increase of 1.3% because of which the company was able to cover up the earlier losses faced by it in the previous year (Chambers 2018). The opinion of “Laith Khalaf, senior analyst at Hargreaves Lansdown” is significant to note in this particular context when he said that “ASOS is enjoying the kind of sales growth that traditional retailers would give their eye teeth for” (Chambers 2018). This comment of Laith Khalaf is a pertinent reflection of the changing buying pattern of the customers and also their urge to take the help of the various kinds of e-commerce business organisations. The main focus of the company Asos is on the customer base which belongs to the age group of twenty years who are not only fashion conscious but at the same time technologically savvy (Chambers 2018). It is significant to note that the style of conducting business of this particular business organisation has considerably affected the business of the other business organisations which do not provide e-commerce facilities to the customers. Furthermore, the cost of conducting business has considerably increased in the present times on the score of various factors and therefore the business organisations which do not provide online services to the customers are finding it very hard to sustain themselves in the business market in the present times (Gangeshwer 2013). However, the business organisations like Asos are capitalising on the changing pattern of the customer buying behaviour to further enhance their prospects in the business world. Furthermore, another significant reason for the rapid growth of the concerned enterprise is the effective outbound logistic system which the enterprise uses not only for the storage of the goods but at the same time for the delivery of the finished products to the end users. One of the major reasons for the recent success attained by this particular business enterprise is the effective use of the concept of outbound logistics by means of which it is not only able to procure the goods or the products that are much in public demand but at the same time helps it to deliver these goods or products ordered by the customers at their doorsteps.

Outbound Logistics

The process of outbound logistics primarily concerns itself with two processes, namely, storage and transportation. These two processes are generally considered to be of paramount importance considering the fact that almost all the business enterprises take the help of these two concepts.  The process of storage is associated storage of the products or the goods which are offered by the enterprise to the customers. There are various factors which the enterprises need to take into consideration for the process of the storage of the products or the goods. Thus it becomes imperative for the various enterprises to procure and store goods by analyzing their own past sale records and also the customer demand at the current moment. The concept of transportation, on the other hand, enables the various enterprises to not only procure goods or products offered by them to the customers but at the same time to deliver at the door steps of the customers. The enterprise Asos Plc takes the help of the concept of outbound logistics for the processes of storage as well as the transportation of the goods. The various strategies used by the enterprise like “omni-channel business strategy”, warehousing, use of recent technology for the process of their business and others are in synchronisation with the concept of outbound logistics that is being followed by the enterprise for the process of their business. Therefore, it would be apt to say that the effective use of the concept of outbound logistics has helped the concerned enterprise in a significant manner as regards the recent success which it had achieved.

The concept of Omni-channel strategy is a very recent one and “it is seen that in the present times the various business organizations are increasingly taking the help of this particular strategy to gain a sustainable amount of competitive advantage over their rival business organizations operational in the same field of business” (Savrul, Incekara and Sener 2014). The concept of omni-channel strategy can be defined as “an approach to sales and marketing that provides customers with a fully-integrated shopping experience by uniting user experiences from brick-and-mortar to mobile-browsing and everything in between” (Savrul, Incekara and Sener 2014). It is “significant to note that the business organization under consideration here is a leader in the nation of the United Kingdom” in the online retail sector. In the opinion of many people “one of the primary reasons for the success attained by the concerned business organization is its omni-channel strategy” by dint of which it provides online services to the customers (Chaffey 2015). It is precisely the use of this particular strategy which has enabled the organization to become the leader in the retail online fashion industry of the nation (Chaffey 2015). Furthermore, the business organization under consideration here is also known for “taking into effective consideration the various needs as well as the requirements of the customers in the most effective manner and offering the various products and the services to the customers which best suits their needs” (Savrul, Incekara and Sener 2014). Moreover, the business organization under consideration here takes into effective consideration the technological requirements of the customers as well as their fashion requirements tries to offer their services in the like manner (Savrul, Incekara and Sener 2014).

Single, Multi- and Omni-Channel Strategy

The formulation as well as the use of the “omni-channel business strategy” requires the use of a sound and effective outbound logistic system which is likely to help the concerned enterprise not only to store the required products at their warehouses but at the same time helps them in the speedy delivery of these products once they have been ordered by the customers. The effective implementation of the “omni-channel business strategy” depends on the effective use of both the concepts of storage and transportation which are the key attributes of the process of outbound logistics. It is a reflection of this particular fact that the enterprise under discussion here takes the help of various kinds of warehouses for the storage of the diverse kinds of goods that it offers to the customers and it is also seen that it has developed its own delivery system which not only helps in the delivery of the ordered goods or the products by the customers but at the same time helps it to procure the goods or products which are in customer demand. Furthermore, for the procurement of these goods or products the enterprise takes the help of various kinds of market studies and also its past invoices that gives it an overview of the products or the goods which are preferred by the customers. Therefore, it would be apt to say that an effective logistics system is an important necessity of this particular strategy.  

The entire services offered by the concerned business organization depend on the various platforms offered by technology (Veit et al. 2014). Therefore, it would be apt to say that the various platforms offered by technology form an “integral part of the business of the business organization” (Veit et al. 2014). It is “significant to note that the business organization under consideration here not only uses the various platforms offered by technology for the purposes of promotion but also for other important activities of their business as well” (Veit et al. 2014). For example, the “business organization under consideration takes the help of the various kinds of technology to convey the information about the products as well as the services offered by them to the customers, to help the customers to book their orders and also to deliver the products ordered by the customers to them” (Veit et al. 2014). Therefore, the various platforms offered by technology are an indispensible part of the business of the concerned business organization. Furthermore, the use of the recent technology is not only likely to help customers who are associated with the concerned enterprise to order the products of their choices without having to leave the comfort of their homes but at the same time it is likely to help the enterprise as well to procure the products and at the same time to deliver them at the doorsteps of the customers in a manner that would be not only effective for the enterprise but also the customers as well. The various platforms of technology are even used by the concerned business enterprise for the process of outbound logistics as well. The enterprise takes the help of the recent technologies to effective study the needs of the customers and also to analyze the past invoices of the sales made by them for the process of the procurement of goods or products. In addition to these, the use of recent technology for the process of transportation has much improved the system of outbound logistics used by the concerned enterprise.

The concept of warehousing can be defined as “the building up of a holding of shares in a company by buying numerous small lots of shares in the names of nominees, in order to make a takeover bid while remaining anonymous” (Li, Wu and Lai 2013). It is “significant to note that the business organization under consideration takes the help of this particular concept to further their interests in the business market of the United Kingdom” (Li, Wu and Lai 2013). Therefore, “it is seen that the business organization under consideration here has numerous nominees in the business market of the United Kingdom who buy the shares of the company” in a bid to keep further the interests of the business of the concerned organization (Li, Wu and Lai 2013). Furthermore, “the business organization under consideration here takes the help of various kinds of warehouses” to store the products procured by them in these warehouses and offer them to the customers when they place the orders (Li, Wu and Lai 2013). The process of warehousing forms a key component of the system of outbund logistics used by the enterprise under discussion here. Moreover, it is generally seen that the various enterprises are in a dilemma as regards the kind of products which they need to store at their warehouses. Thus, it is generally seen that the enterprise Asos takes the help of the past invoices as well as the data of the sale of the products made by them in the past few months to procure as well as store the kinds of products that are in demand among the customers.

The customer behavior has changed significantly in the recent times keeping in view the changes not only in the amount of options available to them but also the “recent changes in the technological fields and also the advent of globalization” (Turban et al. 2017). It is a reflection of this that the buying pattern of the customers has significantly changed in the present times and the customers in the present times feel more comfortable to opt for the services provided by the various e-commerce business organizations rather than the ones offered by the traditional business organizations which did not offer online services to the customers (Turban et al. 2017). This is generally seen as a reflection of the various online facilities provided by these business organizations like home delivery, “payment on delivery” and others (Turban et al. 2017). It is significant to note that the company Asos takes the help of precisely these features “to cater to the changing needs as well as the requirements of the customers in the best possible manner” (Laudon and Laudon 2015). Furthermore, these features not only help the concerned business organization to deliver effective services to the customers from the diverse parts of the nation of the United Kingdom but also have enabled it to earn the loyalty of the customers in the best possible (Laudon and Laudon 2015). It is significant to note that the concept customer loyalty plays a significant role in the present times as it enabled the concerned business organization to retain a particular set of customers who would always opt for the services provided by it. The concept of relationship management is another factor which has played a significant role in the “tremendous growth of the concerned business organization in the recent times” (Laudon and Laudon 2015). It is “significant to note that the business organization under consideration here provides help as well as support to the various customers not only at the time of the sale or the delivery of the products to the customers” but also helps them even after the sale has been made and the product has been delivered to the customers. It is “a reflection of this particular fact that the business organization under consideration here has been able to not only earn the loyalty of the customers but has also been able to achieve a considerable amount of success in the recent times” (Laudon and Laudon 2015).

The feature of home delivery is one of the major reasons which have lead to the success of the various e-commerce business organizations in the recent times. It is significant to note that the lives of the individuals in the present times have become much busy in the recent times and therefore they do not get the adequate amount of time to visit the various stores and purchase the products (Chiu et al. 2014). Therefore, in this particular context the home delivery “offered by the various business organizations in the present times is one of the major reasons for the success attained by the various e-commerce business organizations in the present times” (Chiu et al. 2014). It is “significant to note that the business organization under consideration” here takes the help of this particular feature “to cater to the needs as well as the requirements of the customers in the most effective manner” and this particular feature has contributed towards the success of the organization in the present times in a significant manner (Cavusgil et al. 2014). This particular process forms one of the core components of the system of outbound logistics which is being used by the concerned enterprise. This particular aspect belongs to the category of the outbound logistics of the concerned enterprise and it is seen that the enterprise under discussion here takes the help of multiple supplier systems to ensure that it gets not only the supply of raw materials on time but at the same time is able to deliver the products ordered by the customers through their online services to the doorsteps within the stipulated timeframe prescribed by them.  

The business organization under consideration also provides the option to the customers to return the products which they have ordered from the organization through online means if they do not like the product or if there is any problem with the product offered by the organization (Colla and Lapoule 2012). It is “significant to note that this particular feature has significantly affected the prospects of the business organization in a significant manner and has enabled it to earn the trust of the customers in the most effective manner” (Colla and Lapoule 2012). Furthermore, the added advantage of this reverse logistics feature provided by the concerned enterprise is the fact that the customers do not have to pay anything to the concerned enterprise to return the products purchased by them in case they are defective or if they do not like the quality of the delivered products.

In the present times it is seen that the customers have become more conscious about the products which they are buying and thus the concept of ethical consumerism has gained prominence (Cavusgil et al. 2014). Therefore, “the business organization under consideration here takes the help of this factor” to further the interests of its business. Furthermore, the business organization under consideration here takes the help of various kinds of CSR activities to create a positive brand image for themselves as it is generally seen that the customers tend to opt for the products as well as the services offered by a company which has a more positive brand image (Cavusgil et al. 2014).

The company Next, on the other hand, is another major business organization of the United Kingdom which offers both online as well “motor and brick” retail facilities to the customers from the different parts of the nation (Roderick et al. 2018). This particular business organization just like the business organization of Asos has been experiencing tremendous growth in the recent times not only in terms of the profit margin but also in terms of the customer base as well (Roderick et al. 2018). The sale percentage of the products offered by this particular business organization from “1 November to Sunday 24 December were up by 1.5%” and in addition to this the announcement of the Christmas sale also helped to boost the prospects of the company in a significant manner (Roderick et al. 2018). The company in addition to the e-commerce services which it provides to the customers from the different parts of the nation also provides traditional kind of retail services to the diverse customers of the nation (Rees 2018). However, it is significant to note that the retail business of the organisation which is being conducted on traditional lines has got seriously hampered due to the rise of the various e-commerce business organisations (Rees 2018). Therefore, it can be said that at the current moment the primary focus of this particular organisation is on its e-commerce business.

The authors Hughes and Beukes (2012) are of the viewpoint that one of the key reasons for the recent success attained by this particular business enterprise is the effective use of the concept of outbound logistics and its associated aspects like “omni-channel business strategy”, warehousing, the use of recent technology and others. The business organisation under consideration here takes the help of the concept of “omni-channel strategy” not only to provide online services to the customers but also “to cater to the needs as well requirements of the customers in the most effective manner” (Hughes and Beukes 2012). It is “significant to note that following this particular method the business organisation has been able to not only enhance its profit from its e-commerce services but also have been able to reach out to a much wider customer base” (Hughes and Beukes 2012). Furthermore, the organisation “under consideration here takes the help of the various forms of technology” to not only serve the customers in the most effective manner but also to reach out to a larger number of customers (Hughes and Beukes 2012). Therefore, the company uses the various platforms related to technology not only for the purposes of promotion but also for the purposes of the entire operation of the business. The business organisation under consideration here also takes the help of the process of warehousing to store the products as well as goods which they offer to the customers through their online services (Chang and Graham 2012). Furthermore, the company provides not only effective guidance but also support to the customers right from the starting process of the sale to after the delivery of the products to the customers at their door steps and in the opinion of many people it is a reflection of the quality of the effective services provided by the company that it has been able to earn the loyalty of the customers (Chang and Graham 2012). This particular feature has enabled the organisation to prosper in the recent times. In addition to these the enterprise under discussion here also takes the help of effective system of outbound logistics which enables it not only procure the kind of products that are much in demand among the customers but at the same time enables it to deliver the products to the customers within the time stipulated to them for the delivery of these products. Moreover, the concept of ethical consumerism has become one of the most important ones in the present times and therefore the company under consideration here takes the help of various kinds of CSR activities to enhance its brand image among the customers (Li and Xie 2012).

The primary difference between the outbound logistics systems used by the enterprises Asos and Next arises from the fact that both the business enterprises follow different business strategies for the conduct of their business. The business of the enterprise Asos is totally centred round the concept of “omni-channel business strategy” and thus the outbound logistics system used by this particular enterprise focuses more on the transportation system with the objective to provide better quality of e-commerce services to the customers. The business enterprise, Next Plc, on the other hand, provides both manual as well as e-commerce facilities to the customers and therefore for this particular business enterprise both the concepts of storage as well as transportation becomes very important since it needs to cater to the interests of the customers both at its manual stores and also its e-commerce customers. Therefore, it would be apt to say that the difference between the outbound logistics system used by the two business enterprises arise because of the nature of the business model and strategies followed by them for the process of their business.  

The company “Fung Fashion” belongs to the nation of China and wants to enter the e-commerce business market of the United Kingdom. Therefore, the best thing which the company can do is to follow the model of the business organisations of Asos and Next and the strategies which they follow to sustain themselves in the business market of the United Kingdom. The effective use of the outbound logistics system used by the two business enterprises is another factor which is likely to further enhance the prospects of the concerned enterprise for their business in the nation of the United Kingdom. Thus, the enterprise Fung Fashion following the business model used by these enterprises and the outbound logistics used by them can take the help of strategies like “omni-channel business strategy”, warehousing, use of recent technology, customer home delivery and others for the process of their business. These strategies are not only likely to help the concerned enterprise to procure the goods or the products which are in demand among the customers but at the same time is likely to help to provide better home delivery services to the customers which in turn is likely to improve the services provided by the concerned enterprise. Furthermore, the effectiveness of these strategies and the outbound logistics system depends on the context or the scenario in which they are being used and thus it is generally seen that the kind of outbound logistics system that has proved successful for one particular enterprise might not prove to be equally resourceful for another enterprise as well. Thus, it becomes imperative for Fung Fashion to firstly decide upon the model of business which they are going to follow in the nation of the United Kingdom and then adopt the outbound logistics as per that business model. 

The business organisation can take the help of the “omni-channel strategy” followed by the above mentioned business organisations “not only to reach out to a larger number of customer and also to provide effective services to them” (Li and Xie 2012). It is “significant to note that in the present times the buying patterns of the customers has changed significantly” and therefore they like to take the help of the online services provided by the various e-commerce business organisations. Thus, it would be apt to say that the company Fung Fashion would have a better chance in the retail fashion market of the United Kingdom by following the “omni-channel strategy” (Li and Xie 2012). Furthermore, the company can also take the help of the home delivery options and the concept of relationship management to earn the loyalty of the customers and also to enhance the satisfaction level of the customers so that they would take the help of their services. Moreover, taking the help of the concept of warehousing would also act as an added advantage to the Chinese company. The use of the “latest technology as well as the innovations of the nation of the United Kingdom” is also likely to help the business organisation in a significant manner to sustain themselves in the competitive business market of the United Kingdom (Kim 2013). Furthermore, for the process of entry into the business market of the United Kingdom the company has various kinds of options available like merger and acquisition, collaboration and others. Another factor which the business organisation needs to take into effective consideration is the factor of ethical consumerism and also the various CSR activities. It is significant to note that the customers in the preset times have become much conscious about the kinds of products which they buy or take the help and therefore it becomes very important for the business organisation to ensure that it does not takes the help of any kind of unethical means to enhance to the annual profit gained by them. Moreover, the various kinds of CSR activities would also help in the creation of a positive brand image for the company and it would help the company in a significant manner to further its prospects in the nation of the United Kingdom (Kim 2013). It is “significant to note that in the present times the various customers like to take the help of the services or the products provided by a business organisation which has a positive brand image” and it is a “reflection of this particular fact that the various business organisations in the present times try to take the help of various kinds of CSR activities” which are likely to help them to create a positive image. These in short are some of the factors which the business organisation Fung Fashion can take into consideration for its e-commerce business in the United Kingdom

Conclusion

To conclude, the business world in the present times “has undergone rapid transformation” on the score of various factors like “the advent of globalisation, the recent developments in the fields of technology as well as innovations” and others. Furthermore, “in the present times it is also seen that the buying pattern of the customers has also undergone a rapid transformation” and it is “a reflection of this that the various customers in the present times like to take the help of the various kinds of online services provided by the e-commerce business organisations” which have become the recent trend now. Furthermore, the effective services as well as the features provided by these online e-commerce business organisations also act as one of the key reasons for the change in the buying pattern of the customers. In addition to these, the organisations also need to take the help of the concept of outbound logistics in order not only to provide effective services to the customers but at the same time to sustain themselves in the competitive business market.

References

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