Lara Mode has doubled their number of shops over a span of 3-4 years which collectively increased the revenue of the company. However, revenues per shop have declined by approximately 20% from previous years (Lara, Financial Statement, 2014). The company believes that it is fulfilling all its obligations towards their retail stores and applying appropriate strategies. However, the number of customers visiting the shops have declined in recent years which they believe is due to the growing trend of online retailing. To tackle the issue of decrease in revenue, the company tried to go online and sold their products through Facebook which was not very effective since it did not even contribute to 1% of the company’s total sales in the last fiscal year of 2014 (Lara, Internal Statements, 2014). A few of the reasons why it did not succeed was that customers were not informed that a Facebook page existed. Customers could have been informed by promoting the Facebook page through …show more content…
This part of the research will outline what it actually is that prompts a buyer to buy online rather than at a shop and reasons to buy online. Whether or not people shop using their smart phones will also be part of this chapter as it is part of their buying behavior. This part of the chapter will also outline what difficulties both companies and consumers face while buying or selling online. It will help the company to think about how the barriers can be broken. Also it will be important to outline what benefits Lara Mode can expect from opening an online retail store and also the drawbacks in relation to the customer so that they know all the benefits and risks associated with it. There can be a good cost-benefit analysis on online retailing in this section of the