Osterwalder et al. (2014) stated that a value proposition is a statement that explains the value of the products that a marketer intends to sell to their target customers. This statement illustrate in the website must have to be beguiling enough so that a person may feel that the products that website is offered is the exact thing that they are looking for. Huang and Benyoucef (2013) moreover portrays that an organization can obtain the online value proposition (OVP) success factors through reviewing the potential OVPs, selecting appropriate target audience, proper research the target audience, benchmark the OVPs, suitable definition of the OVP, effective communication system regarding the OVP with the audience and deliver, review and continuous improvement in the value propositions according to the changing needs of the customer and market (Osterwalder et al. 2014).
Image 1: Online value proposition success factors
(Source: Created by Author)
Wet Seal targets the medium income to high income group for their products. Only female apparels are sold through their website. They also offer low, budget or economy priced apparel and accessories. Wet Seal have also targeted behavioral attitude for designing their apparel so that target audience may feel more customized solution for them and they get more attracted towards their brand. Taken for instance, they have developed apparel ranges for Zodiac signs like tops, skirts and jackets for Aquarians; while, only jackets, graphic teee, denim and ankle boots for Libra (Wet Seal Blog 2017). Moreover, the traditional yet most loved color combination black and white dresses also have a separate section so that customer having color priorities can also get their desired dresses (Wet Seal Blog 2017). As a part of their communication the concerned organization has adapted for social media networks like personalized direct e-mail through Microsoft Outlook, Facebook, Pinterest, Twitter, Snapchat and Instagram (Wet Seal 2017). These social media platform have many followers and subscribers for getting regular fashion updates for an events and occasion.
The model that utilized for attaining more money is the revenue model. Chaffey (2015) stated that for e-commerce websites, the best suitable revenue model is Subscription Revenue Model and Pay per Click Text Advertisements. In Subscription Revenue Model, a customer has to subscribe an amount of time for getting access to the product or services (Turban et al. 2015). Argues that this kind of business models is pioneered by magazines and newspapers but I recent times, e-marketers have also adapted this strategy for attaining more financial growth of the organization. On the other hand, Pay per Click Text Advertisements is a business revenue model in which advertisers pay a monetary amount for each time the advertisement is clicked.
Wet Seal has also adapted these two effective revenue models. Users have to subscribe and register them in their sites for receiving news and updates of the new arrival. However, this subscribing technique does not attain much revenue but the technique for Pay per Click Text Advertisements allows them to attain more profit than the previously adapted model. Wet Seal have collaborated with e-commerce marketing applications- Amazon and eBay (Wet Seal 2017). These e-commerce sites allow advertisements for Wet Seal’s website and their fashion products. Users on clicking these advertisements get the product details and the concerned organization attained more profit.
This aspect deals with the strategies through which an organization can attain more customer base and brand recognition. Da Costa (2016) illustrate that in case of e-commerce, market opportunities can be attained by evaluating the product availability in the local market, identifying the policy or regulatory trends that allows an organization to expand to other nation.
At present, Wet Seal has provided their services in the United States but they intend to grow in the international markets. In order to accomplish this intention, they have collaborated with international marketing application so that more people get aware of their brands and they can experience their services. Moreover, the e-commerce facility has an opportunity to grow in nations, where fashion apparels are mostly preferred by communal. UK is a nation, where 63% of the total online consumers purchase fashion apparels (Entwistle 2015).
Image 2: Online buying statistics
(Source: Entwistle 2015)
Moreover, targeting developing countries for their business expansion is also beneficial for Wet Seal as people there will prefer their low budget yet high in fashion products. It is also found from the website that Wet Seal only sell product for female and thus the concerned organization have the opportunity to offer fashion products for men. In this way, they can target more customer base and attain more profitability (Wet Seal 2017).
The major competitors of Wet Seal are- Forever 21, H&M, Zara, Charlotle russe, bebe, Venus and Rule 21. These originations do not only lead the table for their string customer base but in terms of both number of employees and greater financial growth. These originations are more successful as other stores have more products option for every age group and gender. (West et al. 2015) stated that people prefer those brands where they can get variety of product options.
They also target UK for their business expansion. In UK, there are fashion organizations like 1stdibs, Ally Capellino, Asos, Astley Clarke, Avenue 32, Black White Denim and Juno Says Hello (Telegraph.co.uk 2017). In developing countries like China and other Asian countries, the most searched international fashion brands are Gucci and Giorgio Armani; while, in terms of local fashion brands Taobao, Meilishuo, Nuandao and Moonbasa are some brands preferred by Chinese communal (Telegraph.co.uk 2017).
Thus, it can be suggested to Wet Seal to improve their promotional strategies and undergo for business acquisition or merger in suitable cases so that more people from different background can get aware of their product ranges and price and avail their services. Wet Seal can also offer their competitive price and improve their product quality. Moreover, they should also improve their design for their fashion apparel. This will help them to attain customer group ij their intended targeted area.
In this contemporary world, every organization intends to attain more customer base and brand recognition compared to other organization. Every organization also intends to provide a unique facility to their customers that they can prefer their brands compared to other retailers (Neirotti and Raguseo 2017). This offering of additional or different benefits in terms of products or its services that provide them advantage over other competitors is known as competitive advantage.
Wet seal outsources their production items to around 700 independent locations and they have also collaborates with e-commerce marketers like Amazon and eBay for selling their products. They have also formulated low priced fashionable products only for girls. The designer of Wet Seal also researched about the recent trends and behavior of their consumer that allows them to make customized products according to the taste of their target markets. This customization of fashion apparels provides them competitive advantage (Mohapatra 2013). Another aspect that provides them competitive advantage is their approach for maintaining low stock of raw material in their inventory. This allows them for less waste of final product and diminishes the loss occurred due to less sale of apparels. In addition to that, Wet Seal have integrated their production with retailing and respond quickly to the market’s demands. Moreover, their website also has all the contact details thorough which the customer can communicate with the organization directly and share their experience in the social media.
Laudon and Traver (2016) suggest that depending on the product ranges, target audiences and availability of the communication strategies, promotional strategies have to be planned for the organization. Social media is one of the recent promotional strategies through which the promotion of the new or existing products can be attained. The initiative related to the new products can broadcast in the social media so that maximum people can get aware of their new products. Formulation of the brand’s application also allows customer to search of the products of the organization. In addition to that, personalized strategies like mail order marketing and mobile SMS also help to develop the sense of being valued for the organization (Chen et al. 2014). This promotional strategy help the organization to catch the attention of most of the customers and get them know regarding the company’s product.
One of the most effective promotional strategies that Wet Seal have adapted is the interview session with the model from fashion world regarding their preferences of clothes and style that they prefer to broadcast in their website. This interview session with Wet Seal developers for designing fashion apparel for target consumer make them feel more associated with the organization. Moreover, both ways of conventional and contemporary way of advertising also make more people to get knowledgeable regarding their products. (Sil 2015) stated that conventional way of promotion means advertising through billboards, posters, and TV advertisements and contemporary styles refers to the promotion of products though internet applications, social media, contests and event sponsorships.
Barnes and Hunt (2013) stated that an e-commerce business structure is formulated based on the experience that one can get from the e-commerce business. There are seven e-commerce business structure that are- online only, mil order, full multichannel, big bricks and clicks, boutique bricks and clicks, mainstream piggy back and niche piggy back.
Image 3: eCommerce Business Structure
(Source: Barnes and Hunt 2013)
Turban et al. (2015) defines that ‘online only’ business structure signifies a way in which products can be seen online only; whereas ‘mail order’ business structure refers to a state, where the organization have transactional website and have a printed catalogue along with the possibly one or two physical stores. Moreover, the term ‘Big Bricks and Clicks’ structure signifies that the company have lot of physical stores; while, the ‘Boutique Bricks and Clicks’ refers to a case, where company have few e-commerce locations and ecommerce website. Additionally, ‘Mainstream PiggyBack’ and ‘Niche PiggyBack’ resembles to situation for selling their products through e-commerce website that is not theirs and selling products through their own blogs and other e-commerce shopping websites (Da Costa 2016). Lastly, in ‘Full Multichannel’ structure, multiple shops, catalogues, and eCommerce are considered by an organization.
According to the knowledge given in the above business structures, it can be stated that Wet seal have utilize the structure of ‘Boutique Bricks and Clicks’ and ‘Niche PiggyBack’. This is because; they have their own business websites and blogs and also have collaboration with other e-commerce organization like eBay and Amazon.
The leading personnel of the organization should have a proper knowledge of seizing the moment, radiant vision, improvement of the organization, Google webpage ranking, internet traffic, and should be a learning obsessed person (Laudon and Traver 2017). Turban et al. (2017)) moreover describes that since technology is continuously increasing day by day it is important for a ecommerce leader to know the changing and improve technology through which they can update their e-commerce website. The managing authorities of the e-commerce organization also possess strong analytic and organizational skills so that they can bridge traditional and online sales. According to (Mohapatra 2013), these leaders should also posses transformational leadership skills and have knowledge regarding business intelligence. These managers should set the specific online business management parameters so that the sale of the organization can be evaluated properly.
Another skill that is expected for an ecommerce leader is to understand the logistic expertise. Chaffey (2015) stated that since all the delivery process is occurred physically, the manager should monitor whether or not all the desired material is handed over to the intended end-users. Thus, it can be stated that these managers should be passionate about technologies and should also be familiar with CMS types along with the concept of SEO, SEM and online security (Entwistl 2015). It is the liavlity of these elders to make their employee learn about the new technology and utilize the same for accomplishing the organizational work. They should also motivate their employees to adapt new technology so that they never feel that adapting new technology is cumbersome.
References
Barnes, S. and Hunt, B. eds., 2013. E-commerce and v-business. Routledge.
Chaffey, D., 2015. Digital business and E-commerce management. Pearson Education Limited.
Chen, J.E., Pan, S.L. and Ouyang, T.H., 2014. Routine reconfiguration in traditional companies’e-commerce strategy implementation: A trajectory perspective. Information & Management, 51(2), pp.270-282.
Da Costa, E., 2016. Global e-commerce strategies for small businesses. Mit Press.
Entwistle, J., 2015. The fashioned body: Fashion, dress and social theory. John Wiley & Sons.
Facebook.com., 2017. Wet Seal. [online] Available at: https://www.facebook.com/wetseal/ [Accessed 23 Jun. 2017].
Huang, Z. and Benyoucef, M., 2013. From e-commerce to social commerce: A close look at design features. Electronic Commerce Research and Applications, 12(4), pp.246-259.
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Mohapatra, S., 2013. E-commerce Strategy. In E-Commerce Strategy (pp. 155-171). Springer US.
Neirotti, P. and Raguseo, E., 2017. On the contingent value of IT-based capabilities for the competitive advantage of SMEs: Mechanisms and empirical evidence. Information & Management, 54(2), pp.139-153.
Osterwalder, A., Pigneur, Y., Bernarda, G. and Smith, A., 2014. Value proposition design: How to create products and services customers want. John Wiley & Sons.
Pinterest., 2017. Wet Seal (wetseal). [online] Available at: https://www.pinterest.com/wetseal/ [Accessed 23 Jun. 2017].
Sila, I., 2015. The state of empirical research on the adoption and diffusion of business-to-business e-commerce. International Journal of Electronic Business, 12(3), pp.258-301.
Telegraph.co.uk, 2017. 17 British fashion brands you need to know for 2017. [online] Available at: https://www.telegraph.co.uk › Lifestyle › Fashion › Brands [Accessed 23 Jun. 2017].
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Turban, E., Whiteside, J., King, D. and Outland, J., 2017. Business-to-Business E-Commerce. In Introduction to Electronic Commerce and Social Commerce (pp. 101-135). Springer International Publishing.
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Wet Seal Blog., 2017. 2017 Zodiac Style Guide – Wet Seal. [online] Available at: https://wetsealblog.com/zodiac-style-guide/ [Accessed 23 Jun. 2017].
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