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Using Porter's Value Chain Model, the digital strategy of the Chanel brand can be understood. This model is based on primary and support activities. The primary activities entail inbound logistics; operations; outbound logistics; marketing & sales; and services (Aiolfi & Sabbadin, 2019). In the case of Chanel's e-commerce digital strategy, the activities that develop value in respect of refining the effectiveness fashion house offerings are mentioned below:

Integrated client services:

The Chanel brand can provide services like a virtual fitting room grounded in VR (virtual reality). With this, the brand can suggest the size of garments that immediately match the measurements of clients, and facilitate them to try on various sizes to recognize the suitable fit and size.

Integrated client traceability:

The Chanel brand can use mobile-id tracing wherein it can utilize the users' smartphone's Wi-Fi to trace their journey in online shopping and in-store experiences. However, it might be challenging for the brand to protect such data from breaches. It can be said that the Chanel brand can use virtual coupons without using personal data to trace the store clients online.

Integrated transactions:

The Chanel brand should provide protected accessibility to accomplish the deals through all accessible channels. It is said that with integrated dealings, clients can be capable to buy goods directly from all accessible channels such as social media, TV ads, and more. This will add value to the digital marketing activities of the Chanel brand.

Integrated order fulfillment:

The brand is required to be capable of seeing inventory around all channels so that it can know where goods are accessible and how quickly it might get them to clients. The users will be able to reserve goods in-store utilizing mobile phones and social channels (Le Xuan, 2019).

Integrated promotion:

At the time of the pre-purchase phase, Chanel can utilize services like real-time pricing and product info which can be incorporated with social media and reflect clients' reviews. The brand can further utilize connected home apparatuses to sense client needs and exchange customized need-based offerings via mobile medium. Also, it can introduce business-initiated mobile touchpoints to offer customized, time-sensitive, and locality-sensitive promotions.

Integrated fraud detection:

With the assistance of digitalized and interconnected devices for channel integration, cyber-assaults are probable to occur since IoT devices possess restricted computing strength to detect such attacks.

Integrated data privacy and security:

The Chanel brand must certify that the privacy circumstances are obeyed to when data is integrated from diverse channels.

Integrated analytics:

The Chanel brand can fuse the diverse kinds of data accessible from numerous channels like e-commerce, ERP, CRM, social media, and more to foresee client intent and make informed decisions and actions (Magnin, 2022).

Integrated reverse logistics:

Chanel brand can provide services like purchasing online and returning in-store utilizing RFID-tagged goods. It can henceforth provide clients the capability to purchase in-store and return through other channels like utilizing the website and getting the return gathered from their houses (Difrancesco et al., 2023).

Firm Infrastructure

Human Resource Management

Procurement

AI; IoT; Mobile techniques

AI; mobile techniques; IoT; blockchain; edge computing

IoT; blockchain; AI

AR (augmented reality); IoT; mobile techniques; biometric techniques

AI; mobile techniques; IoT; cloud computing; blockchain; edge computing

Inbound logistics

Integrated reverse logistics

Operations

Integrated client traceability

Integrated fraud recognition

Integrated analytics

Outbound logistics

Integrated order fulfillment

Marketing and sales

Integrated pricing

Integrated transactions

Integrated promotions

Services

Integrated data security and privacy

Integrated client services

References

Aiolfi, S., & Sabbadin, E. (2019). Fashion and new luxury digital disruption: The new challenges of fashion between omnichannel and traditional retailing. International Journal of Business and Management14(8), 41-51.

DiFrancesco, R. M., Meena, P., & Kumar, G. (2023). How blockchain technology improves sustainable supply chain processes: a practical guide. Operations Management Research16(2), 620-641.

Le Xuan, T. (2019). Digital marketing strategies of luxury fashion brands in China: The Gucci brand.

Magnin, A. M. M. (2022). How can luxury companies integrate augmented reality throughout the value chain? (Doctoral dissertation).

Related Topic: Value Chain Analysis For Hospitality Services Assignment Help

 

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