The OmnI-ChAnnel eCOsysTem
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EXAMPLE: HOLLAR—TAKING THE DOLLAR STORE ONLINE (USA)
hollar is an online dollar store, conceived of in 2015 when the founders
saw that e-commerce
had not really penetrated this retail space. existing companies such as Dollar General and Dollar
Tree had limited online presence, and e-commerce startups were focusing all their efforts on
more affluent customer groups. For hollar, 80 percent of its traffic comes from customers using
their mobile devices to find items
commonly found in drug stores, at much lower prices.
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many items cost $1, though the median price on hollar is $5; nothing costs more than $10.
The company boasts more than 2 million active users.
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To deal with shipping costs, it avoids
carrying heavy items (an average shipment weighs 5 pounds) and requires a minimum order
of $10—though average order sizes reach about $30.
F R O M A M U L T I - C H A N N E L T O A N
O M N I - C H A N N E L W O R L D
Some writers use the terms “multi-channel,” “omni-channel,” and “cross-channel”
loosely and nearly interchangeably.
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Yet omni-channel and its variants are becom-
ing
increasingly prevalent; in Figure 1.2, we graph the frequency of searches for the
term “omni-channel” in recent years.
This growth reflects market trends. The ever-growing share of online sales has
prompted most manufacturers to add online channels to their existing channels
mix. In certain industries (e.g., travel, books), online sales have decimated tradi-
tional intermediaries; in others, though (e.g., food retailing),
the impact of online
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