Determination of Success Factors of the Shop-in-Shop and the Concession Model in the Fashion Industry: An Empirical Analysis of Consumer Perception in the Case of an European Fashion Company in Spain

Christina G. Gaupp, Marc. M. Kuhn
(Baden-Wuerttemberg Cooperative State University Stuttgart, Germany)

Abstract: In the fierce competitive environment of the fashion industry, characterized by increasingly shorter product-life-cycles, growing expectations of informed consumers and an intensifying pressure from cheap products, consumer proximity, a strong brand presentation and a short time to market, are decisive elements for manufacturers. Due to market concentration of large-scale retail chains and a shift in power within the distribution channel from manufacturers towards retailers, new vertical marketing concepts emerged which allow to increasingly control the retail channel. Especially the specific success factors of the Shop-in-Shop Concept (SiSC) and the Concession Model (CM) are under focussed discussion. This paper aims to explore the consumers’ perception of the CM compared to the SiSC in retailing.
     

      The research question here is:
      Do consumers perceive the potential benefits of the CM compared to the SiSC in fashion retailing?
      In these premises an exploratory study was undertaken.

    By means of grounded research a framework was developed and the success factors of both concepts regarding Instore Marketing, Merchandise and Personal selling were determined. Based on these findings hypotheses were put forward and tested by means of primary data (consumer survey) gathered in selected sales areas of an European fashion company, managed by means of the two retail models (CM and SiSC) in department stores of a Spanish retail chain in Spain.

Key words: retail system; concession model; shop-in-shop; success factors

JEL code: M31