E-commerce as the predominant business model of fast fashion retailers in the era of global COVID 19 pandemics

Abstract

The current pandemic situation creates several challenges for many entities. One of them is the fact that fast fashion retailers have to change their strategic activities related to the whole business model concept. In the proposed paper it is assumed that business model plays crucial role as the success factor for entities from different industries including fast fashion retailing especially in the era of global pandemics. Therefore, the aforementioned area (business model as the success factor of the company) constitutes the subject of the paper. Purpose. The aim of the paper is to indicate the scope and main character of changes in business models implemented by fast fashion retailers in pandemic times. The following goals of descriptive and cognitive character are assumed in the paper: a) identification of the fast fashion retailers’ common activities in changing business models in the era of pandemics, and b) identification of e-commerce solutions applied by fast fashion retail chains which are caused by development of multi-channel and omni-channel solutions based on Inditex example. Methodology. Based on the theoretic deliberation of retail chains business models in the pandemic times, qualitative research was conducted to supplement the theoretical background. The purpose of this study was to identify how fast fashion retailers develop their e-commerce solutions to maintain the sales level. The conducted research enabled finding the answers to the following research questions: What are the good practices of fast fashion retailers in terms of development of e-commerce channels? Can fast fashion retailers relying on e-commerce business models stay profitable in the Covid-19 pandemics? The theoretic deliberation is based on critical literature review. The empirical part of the paper is based on case study research. The conducted research was descriptive in nature, conducted in order to describe a particular phenomenon within its context, and was not intended to provide conclusive evidence, but to have a better understanding of the problem. Descriptive intrinsic case study was the method applied in the research. Results. On the grounds of literature studies, as well as collected information, it can be stated that e-commerce solutions are the predominant business model of fast fashion retailers in the era of global COVID 19 pandemics. The descriptive case study research allowed to observe, analyse, and report good practices of fast fashion retailer Inditex in terms of implementing into their business models more and more e-commerce solutions such as: development of applications, development of multi and omni channels. The theoretical contribution. On the grounds of the case, it can be stated that during pandemics fast fashion retail chains focus on development of innovative business models based on e-commerce solutions. Practical implications (if applicable). The paper provides intellectual input into the managerial problem of how to develop mutual beneficiary business models for fast retail chains as well as for their customers. The study suggests that fast fashion retail chains have to take into consideration growing customers expectation, with regard to e-commerce solutions.

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