How do e-stores grow their market share?

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F22%3AA0000354" target="_blank" >RIV/47813059:19520/22:A0000354 - isvavai.cz</a>

Result on the web

<a href="https://www.emerald.com/insight/content/doi/10.1108/MIP-04-2022-0170/full/html" target="_blank" >https://www.emerald.com/insight/content/doi/10.1108/MIP-04-2022-0170/full/html</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1108/MIP-04-2022-0170" target="_blank" >10.1108/MIP-04-2022-0170</a>

Result language

angličtina

Original language name

How do e-stores grow their market share?

Original language description

Abstract Purpose The purpose of this paper is to identify how fashion and cosmetics e-stores compete and grow to help e-commerce managers set the corresponding marketing strategy. It describes the relevance of customer acquisition and retention to market share as the essential performance metrics. Design/methodology/approach An empirical generalization approach where patterns in data appearing across studies are described by a mathematical or graphical method is used. To do that, the authors observed real transactional data and the effect of how e-stores benefit from new and returning customers and gain a larger market share. The authors have analysed behavioural data from nearly 124,000 e-commerce customers in two highly popular product categories (fashion and cosmetics) in the size of 10,000,000 euros in sales or more. Findings Fashion and cosmetics e-stores with more market penetration tend to have a higher market share measured both by the number of total purchases and the number of sales in euro. In other words, market penetration is a solid predictor of market share in all circumstances. Interestingly, no significant difference in loyalty has been observed in relation to market share growth except in the situation where the market partition was excluded from the product category. Research limitations/implications The businesses under study derived only from one country and only two product categories were observed. Thus, there is a potential limitation in generalizing the findings to the whole e-commerce market from a geographical and category perspective. The length of the observation period may also play a role as a longer period increases the chance of repeat buying. Practical implications E-commerce managers can gain long-term market share growth mainly via higher market penetration (acquisition of new customers) and should avoid misleading overfocus on loyalty tactics (retention of current customers). The study also provides important benchmarks for e-commerce businesses in the fashion and cosmetic categories. Originality/value In the market share growth literature, only a handful of studies focus on stores and not on products. Moreover, there is a dominance of fast-moving consumer goods categories. Surprisingly, studies analysing ever-growing e-commerce markets are scarce. Thus, this research is original because it describes, using empirical data, how brands online, at the store level and within the fashion and cosmetics category, grow their market share. It is also one of the few studies that work with real business transactional data.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50204 - Business and management

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

MARKETING INTELLIGENCE &amp; PLANNING

ISSN

0263-4503

e-ISSN

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Volume of the periodical

40

Issue of the periodical within the volume

8

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

13

Pages from-to

945-957

UT code for WoS article

000814621800001

EID of the result in the Scopus database

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