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Research Proposal Impact of online shopping on the retail clothing business in the Netherlands Supervisor Name: Year and Block: Campus: Date submitted: Total word count: 1

Table of Contents 1. INTRODUCTION TO RESEARCH TOPIC ........................................................................... 3 2. FOCUS OF THE STUDY: PROBLEM STATEMENT ........................................................... 3 3. RELEVANT BACKGROUND LITERATURE ....................................................................... 4 H ISTORY OF E- COMMERCE ................................................................................................................. 4 D IGITAL T RANSFORMATION IN B USINESSES ....................................................................................... 4 I MPACT OF TECHNOLOGY ON TRADITIONAL RETAIL AND E - COMMERCE ............................................. 5 C ONSUMER BEHAVIOUR ..................................................................................................................... 5 R ETAIL AND B UYING B EHAVIOUR ...................................................................................................... 6 E- COMMERCE TREND IN THE N ETHERLANDS ..................................................................................... 7 4. THEORETICAL FRAMEWORK ........................................................................................... 7 D RIVING FORCE OF BUSINESS MODEL ................................................................................................ 7 5. MAIN RESEARCH QUESTIONS AND SUB-QUESTIONS .................................................. 8 6. RESEARCH OBJECTIVE ...................................................................................................... 8 7. PURPOSE OF THE STUDY .................................................................................................... 8 8. RESEARCH METHOD AND DESIGN .................................................................................. 9 R ESEARCH M ETHOD .......................................................................................................................... 9 R ESEARCH D ESIGN ............................................................................................................................ 9 P OPULATION ...................................................................................................................................... 9 S AMPLING M ETHOD ........................................................................................................................... 9 S AMPLE CHARACTERISTIC AND SIZE ................................................................................................ 10 9. SIGNIFICANCE OF RESEARCH ........................................................................................ 10 10. TRUSTWORTHINESS ........................................................................................................ 10 11. ETHICAL CONSIDERATION ............................................................................................ 10 12. TIMELINE FOR THE RESEARCH ................................................................................... 11 13. ASSUMPTIONS, LIMITATIONS, AND DELIMITATIONS .............................................. 11 A SSUMPTIONS .................................................................................................................................. 11 L IMITATION ...................................................................................................................................... 12 D ELIMITATIONS ................................................................................................................................ 12 14. DEFINITION OF KEY TERMS .......................................................................................... 12 15. REFERENCES ..................................................................................................................... 13 2

1. Introduction to research topic Companies in clothing industry are constantly looking for innovative ways to adapt to the ever-evolving wants and needs of their customers in light of globalisation and the rapid development of information technology. Traditional offline market structures have been disrupted by the advent of e-commerce, which reduces the time and distance between sellers and customers. E-platforms help businesses save money on overhead by streamlining processes and streamlining transactions ( Cullinane et al., 2019). They also like the ease with which e-commerce allows them to interact with clients who are located in other parts of the world. With the help of e-commerce, businesses and consumers all over the world may instantly connect with one another as possible clients and vendors. Meanwhile, due to the convenience of online searching and purchasing, e-commerce is able to provide a wide variety of product contents to satisfy shoppers ( Jílková and Králová, 2021). People's buying habits have shifted significantly in the Netherlands during the previous decade. It is commonly believed that the majority of the negative effects felt in the clothing retail sector may be attributed to the rise of online shopping. Although the number of stores may have shrunk, especially in some clothing sector, this does not mean that fewer people are visiting these businesses. As an alternative, researchers can attribute it to shifts in customer shopping habits. Consumers now also frequently shop both in traditional brick-and-mortar businesses and online. Many long-standing store owners are finding it increasingly challenging to compete as digitalization advances ( Kumar and Bagai, 2018). There is a decline in revenue for brick-and-mortar retailers because of the rise of e-commerce. Some stores have established an online presence in response to the increasing popularity of Internet shopping. The trend toward hybrid business structures is pervasive and may be seen in many different sectors. Stores can work as billboards for companies, catalogues can serve as friendly reminders, and the Internet can serve as a 24/7 storefront all in an effort to expand a company's customer base and take advantage of synergies ( Yin and Xu, 2021). 2. Focus of the study: Problem Statement The thesis will examine the effects of online shopping on brick-and-mortar businesses, focusing on the clothing industry. Businesses in practically every area, from retail to manufacturing to healthcare, are being disrupted by the rise of digital technologies. It achieves this by removing obstacles between consumers and merchants. The term "digital business transformation" refers to the widespread adoption of new Internet-based tools by companies, which in turn alters their core operations (Shi et al., 2019). When cutting-edge 3

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web technologies are integrated into businesses, it results in a radical shift in how those establishments go about their daily operations. Yet many companies—including the companies in the fashion industry—have struggled to thrive in the digital age because they did not swiftly develop and implement business strategies that adapted to the new technology, such as going digital or online (Hess et al., 2016). The Netherlands can see a continually rising trend of consumers purchasing goods and services online. Customers are now more likely to do their shopping online regardless of the time of day or night, due to the proliferation of mobile devices and the proliferation of online shopping platforms that allow consumers to compare prices and items from the convenience of their own homes (Maat and Konings, 2018). In this thesis, the researcher will discuss the problem caused by online shopping in physical stores in the clothing industry. 3. Relevant Background Literature History of E-commerce In this age of technological advancement, the largest retail establishment in the world does not even have a single brick-and-mortar location. Many people have strong opinions on the future of electronic commerce. People's routines are shifting as a result of the convenience of online buying, which liberates consumers from needing to visit brick-and-mortar stores . To do business over the Internet and other electronic networks is known as "e-commerce." Electronic commerce is defined as the use of IT and digital communication. Since the introduction of the Internet in 1995, e-commerce has experienced rapid expansion. Business transactions and company-client communication are greatly facilitated by the widespread availability of the Internet. At the very least, an online shop will cater to one of the four distinct subsets of e-commerce: transactions between companies, between consumers, between consumers and between consumers and the government ( Cullinane et al., 2019) . Digital Transformation in Businesses Colber et al. (2016) argue that in this era of globalisation, IT technologies are a crucial part of the framework of any successful business. As a result of technological progress, businesses now must contend with numerous novel and serious issues. In 2013, we entered the era of ubiquitous computing, in which communication and networking technologies became the backbone of modern enterprises and forged an even tighter bond between computers and their users. Massive networks of persons, machines, and things are emerging as a result of revolutionary advancements like mobile applications and virtual reality. Traditional firms are evaluating the possible economic and social effects of digitalization. There has been a shift in 4

the way businesses interact with their target audiences as a result of the rise of the digital economy (Schwarzmüller et al., 2018). Impact of technology on traditional retail and e-commerce Since the Internet became a viable shopping alternative for customers in the middle of the 2000s, e-commerce has exploded (Szolnoki et al., 2016). Because of the Internet, we now live in a new era in which nearly everything, and everyone, is connected to the web. In the present day, e-commerce provides cutting-edge, time-saving innovations for doing one's online purchasing. Therefore, buyers have access to a plethora of options, regardless of location, making online buying a very efficient activity. Internet-based business has been expanding rapidly for more than a decade (Chuan et al., 2013). The on-going e-commerce research acknowledges that shoppers' loyalty to and intents to buy from online stores are influenced by their cognitive and emotional interactions with those stores' websites. For instance, it's easier to get the data you need or make a quick purchase. In addition to the price and quality, these two factors significantly affect online shoppers' overall satisfaction. According to Mintel (2012), a market research firm, shopping in stores is the most efficient way for customers to purchase new clothing, and research shows that shoppers are spending less time buying overall (Chu & Lam, 2017). When asked to explain the current condition of affairs, several authors blame online commerce. The inability to see and touch the item in question is a major drawback to online clothing purchases (Fashion Online, 2012). Consumer behaviour Anyone who buys and uses goods and services fits the definition of consumer. Consumers make purchases after realising they have an unfulfilled need, desire, or goal. Companies often make an effort to cater to customers' psychological as well as physical necessities. The cultural, social, emotional, and psychological aspects of an individual all have a role in shaping the way they make purchases. Cultural elements, understood here in their most inclusive and all-encompassing sense, have a substantial and pervasive impact on consumer behaviour (Chu & Lam, 2017). Two important insights can be gleaned from studying consumer spending: the thought process behind customers' purchases and the factors that influence those decisions. Worldwide, consumers' online shopping behaviours are shifting as a result of the Internet. It is now a commercial enterprise involving marketing, retail, and commerce. The Internet now greatly affects people's daily life, especially in comparison to the past (Hess et al., 2020). 5

Online shopping is the third most popular pastime for Internet users. Next in line after electronic mail, IM, and online surfing. When making an online purchase, customers are influenced by a number of different aspects. Consumers' online actions and decisions are influenced by a number of factors, including but not limited to the availability of the goods in the customer's region, the urgency with which it must be delivered, the availability of suitable alternatives, and the desire for unique items. Most consumers rely heavily on Internet retailers because of the ease and availability of their services. There is also an association between the nature of the product or service and a customer's propensity to shop for it online. That compatibility is hampered by the fact that Internet shopping typically involves less human interaction than traditional methods. There's also the fact that sometimes you just can't beat going to the store instead of shopping online. The stimulus, the individual's history and background, and the situation all play a role in shaping an individual's attitude to a judging action (Pantano & Gandini, 2018). Retail and Buying Behaviour Competition in the retail sector has reached record highs in recent years, especially between mall and traditional retailers (Isidore, 2017). The term "retail apocalypse" was coined to describe the sudden proliferation of traditional mall-based stores across North America (Peterson, 2017). A rise in online sales is at least partially attributable to these changes, but these developments have also altered consumers' expectations, as seen by the aforementioned adjustments in behaviour. This demonstrates that today's multifaceted consumer is more drawn to businesses that offer more than just the standard shopping experience. These innovative retailing practises have helped the retail industry adapt to rapid shifts in consumer preferences (Pantano & Gandini, 2018). Customers definitely have strong desires to shop, and they want stores to meet those needs in addition to providing them with the products they need. They look for unique in-store encounters that align with their ethical and environmental values, such the ability to try out new products and services and make connections with other shoppers (Sicola et al., 2016). On the other hand, non-conventional retailers have adopted a customer-centric strategy that emphasises direct communication with shoppers and immersive experiences in order to increase product sales (Deloitte, 2017). E-commerce trend in the Netherlands The volume of quarterly Internet purchases in the Netherlands continues to go up, indicating the country's thriving e-commerce sector. The Dutch online fashion sector is thriving when 6

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compared to similar markets throughout the world. After other European countries including the UK, Germany, France, and Italy, the Netherlands is the world's thirteenth biggest clothing e-commerce market in terms of total revenue. By 2025, online sales in the Netherlands are projected to account for more than half of the country's total garment revenue, which is estimated at $10.6 billion in 2022 (Statista, 2022). Over half of Dutch respondents to a survey said they shopped online for clothing. Over 20% of online customers make clothes purchases more than once a month. By 2025, it is expected to have risen to 1,406 euros, continuing an upward trend (Hess et al., 2020). 4. Theoretical Framework Driving force of business model Figure 1: Driving force of business model (Chu & Lam, 2017) The expansion of the Internet and other forms of new technology in the retail sector has led to a rise in the number of initiatives aimed at creating new retail business models. The following forces, as shown by this model, are responsible for the shift from a physical to a digital business model: First, technological advancements have made it possible for companies to expand their operations by selling their wares online, which has many advantages, including lower overhead and access to a larger customer base. Second, the market is becoming increasingly competitive, and all businesses, regardless of sector, are embracing digital transformation. Thus, going digital has become crucial for continued business success. 7

Third, Customers today would rather purchase online than in a physical store, thus supply and demand have shifted to reflect this shift. Therefore, going digital is crucial in today's market to meet consumer demand (Chu & Lam, 2017). 5. Main Research Questions and Sub-questions Main Question 1. What is the impact of online shopping on the retail clothing business in the Netherlands? Sub-questions 1. How has the rise of online shopping affected brick-and-mortar retailers in the clothing industry? 2. How do buyers decide whether to shop online or in a physical store in the clothing industry? 6. Research Objective - To understand the influence of online shopping on clothing businesses in the Netherlands - To understand the factors which are considered by buyers while shopping offline or online in the clothing industry - To explore how physical brick and mortal retailers are affected due to digital transformation in the clothing industry 7. Purpose of the study The overarching purpose of this paper will be to analyse how online shopping has affected brick-and-mortar retailers in the food and apparel industries. Multiple explanations for the same event demonstrate how the Internet has superseded the real world. It has been predicted that as more and more transactions take place online, brick-and-mortar stores would become obsolete (Hortaçsu & Syverson, 2015). Most previous studies have been on the impact of e-commerce in general, and when it comes to consumer behaviour, studies have mostly concentrated on identifying key variables of customer knowledge and acceptance of e-commerce in general, rather than industry-specific. Retailers in the Netherlands have been forced to temporarily close their businesses due of the Covid-19 outbreak, which has been ongoing for months. For the sake of making a profit in these trying economic times, many stores have shifted their marketing efforts online (Nguyen et al., 2020). 8

Many people have been compelled to do their holiday shopping without leaving their houses because of the current pandemic. This has prompted the research to examine the extent to which online shopping affects brick-and-mortar establishments. That customers prefer to interact with businesses in person is enough to convince some of them. For the sake of this study, the researcher will limit his or her attention to companies based in the Netherlands (Ijaj and Rhee, 2018). 8. Research Method and Design Research Method This research will make use of a variety of research methods, including both secondary and primary methods, specifically a Mixed Method ( Bastianoni et al., 2020). In the secondary method, references will be made to a wide variety of scholarly works and journals. The first method consists of carrying out a survey among consumers in the Netherlands who have made a purchase of clothing through either the offline or the Internet media. Research Design In this particular piece of study, an Explanatory Research Design will be utilised. Using a variety of scientific instruments and approaches, the researcher will investigate cutting-edge business concepts and ideas as part of this research design. The findings of this research will give novel and original solutions to an issue faced by brick- and-mortar apparel retailers in the Netherlands, whose sales have suffered significantly as a direct result of the rise of Internet shopping ( Dannels, 2018). Population The customers of the Netherlands' Retail Clothing industry who buy clothing from either a physical store or an online store would make up this study's population, and they would be asked to participate in an accompanying survey. These individuals will contribute to the problem analysis because they are the ones responsible for making purchases. Sampling Method In this study, we will be using a sampling approach called the simple sampling method . It is a reliable method of data collection in which every single person in a population is randomly chosen, fully at the whim of chance. Everyone has an equal chance of getting elected to participate in a sample when it comes to probability ( Denieffe, 2020). 9

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Sample characteristic and size Consumers who shop at retail clothing businesses in the Netherlands, with 30–50 customers constituting the sample size. 9. Significance of Research This research is necessary in order to have an understanding of the ever-changing retail market and consumer habits. It is difficult to predict how much of an impact e-commerce will have on conventional retailers because of the role that customer behaviour plays in shaping the retail landscape. The outcome will be determined by the preferences of customers regarding store settings. It can be challenging for many fashion brands to bring their offline aspirations to life on the Internet because of the draw of traditional brick-and-mortar storefronts (Ijaz and Rhee, 2018). 10. Trustworthiness The survey will be carried out in an exact, systematic, and comprehensive manner. This will be accomplished by archiving, systematizing, and exposing the techniques of analysis with sufficient depth of information to enable the reader to judge whether or not the method is trustworthy. 11. Ethical Consideration Voluntary participation: Volunteers have the option to participate in the study voluntarily at any time by choosing to do so or not. Informed consent: Participants will be given information about the study's goal, potential downsides, potential benefits, and funding before determining if they want to participate. Anonymity: The researchers are unaware of the identities of the people who will be participating. There will be no collection of personally identifiable information. Confidentiality: The researcher will keep the identities of the participants confidential from everyone else, despite the fact that they are aware of who they are. The data containing personally identifiable information will be anonymized by the researcher so that it cannot be linked to any other data by any other party. 10

Potential to harm: In this research, the danger of any harm, including psychological, physical, social, and other types of harm, is kept to a minimum. Results communication: The researcher is in responsible for ensuring that there are no instances of plagiarism or poor research practices and that the results are reported accurately. 12. Timeline for the Research November, 2022 December, 2022 January, 2023 February, 2023 March, 2022 April , 2022 1 Research Proposal 2 Chapter 1 3 Chapter 2 4 Chapter 3 5 Chapter 4 6 Chapter 5 8 Submissio n of final research work 13. Assumptions, Limitations, and Delimitations Assumptions The assumption made in this research is that the participants are giving answers honest answers. Limitation Because this research entailed surveying a select group of individuals, the researcher might run into the issue of having restricted access to those who participated in the survey. It's possible that researcher will need to modify or reconstruct the research in a new context because of the limited access they have. 11

Delimitations This study will exclusively concentrate on clothing retail businesses located in the Netherlands as its primary emphasis. In the course of this study, neither another sector nor any other nation will be taken into consideration. 14. Definition of key terms Digital Transformation: To adapt to shifting business and market needs, organisations are increasingly turning to digital transformation, which includes the use of digital technology to develop and implement novel business operations, organisational cultures, and consumer experiences. Digital transformation refers to this process of rethinking company practices for the Internet Age (Shi et al., 2019). Brick and Mortar Model: Providing goods and services to locals at a physical location, such as an office or storefront that the company owns or leases, is what is meant by the term "brick-and-mortar." (Kumar and Bagai, 2018). E-commerce: Ecommerce, often known as electronic commerce or online commerce, is the practise of exchanging financial and identifying information electronically in order to buy and sell goods and services (Yin and Zhu, 2021). Customer behaviour: The study of consumer behaviour delves at the reasoning behind why, when, and how customers make their purchases (Ijaj and Rhee, 2018). Clothing retail industry: Retail is the business of buying goods wholesale and reselling them to the general public. In order to stock their shelves with the latest fashions, retailers must make their initial orders three to six months before the public is capable of purchasing the items (Shi et al., 2019). 15. References 12

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Bastianoni, C., Mora, S.C., De Gregorio, E. and Bizzi, F., 2020. Exploring adopted adolescents’ inner world through the lens of qualitative methodology. Children and Youth Services Review , 113 , p.104973. Chuan, N. K., Sivaji, A., Shahimin, M. M., & Saad, N., 2013. Kansei engineering for ecommerce sunglasses selection in Malaysia. Procedia-Social and Behavioral Sciences, 97, 707-714. Cullinane, S., Browne, M., Karlsson, E. and Wang, Y., 2019. Retail clothing returns: A review of key issues. Contemporary operations and logistics , pp.301-322. Colbert, A., Yee, N., & George, G., 2016. The digital workforce and the workplace of the future. Chu, A. W., & Lam, M. C., 2007. Store environment of fashion retailers: a Hong Kong perspective. In Fashion marketing (pp. 175-191). Routledge Denieffe, S., 2020. Commentary: Purposive sampling: complex or simple? Research case examples. Journal of Research in Nursing: JRN , 25 (8), p.662. Dannels, S.A., 2018. Research design. In The reviewer’s guide to quantitative methods in the social sciences (pp. 402-416). Routledge. Hess, T., Matt, C., Benlian, A., & Wiesböck, F., 2020. Options for formulating a digital transformation strategy. In Strategic Information Management (pp. 151-173). Routledge. Isidore, C., 2017. Retail’s toughest year: A record for store closings. CNN Money. Ijaz, M.F. and Rhee, J., 2018. Constituents and consequences of Online-shopping in Sustainable E-Business: An experimental study of Online-Shopping Malls. Sustainability , 10 (10), p.3756. Jílková, P. and Králová, P., 2021. Digital consumer behaviour and ecommerce trends during the COVID-19 crisis. International Advances in Economic Research , 27 (1), pp.83-85. 13

Maat, K. and Konings, R., 2018. Accessibility or innovation? Store shopping trips versus online shopping. Transportation Research Record , 2672 (50), pp.1-10. Mintel., 2012. Clothing retailing Europe Pantano, E., & Gandini, A., 2018. Shopping as a “networked experience”: an emerging framework in the retail industry. International Journal of Retail & Distribution Management. Schwarzmüller, T., Brosi, P., Duman, D., & Welpe, I. M., 2018. How does the digital transformation affect organizations? Key themes of change in work design and leadership. mrev management revue, 29(2), 114-138. Shi, K., De Vos, J., Yang, Y. and Witlox, F., 2019. Does e-shopping replace shopping trips? Empirical evidence from Chengdu, China. Transportation Research Part A: Policy and Practice , 122 , pp.21-33. Szolnoki, G., Thach, L., & Kolb, D., 2016. Current status of global wine ecommerce and social media. In Successful Social Media and Ecommerce Strategies in the Wine Industry (pp. 1-12). Palgrave Macmillan, New York. Kumar, S. and Bagai, S., 2018. Consumer Behaviour in Fashion Retail Industry-Role of Ecommerce in Indian Fashion Retail Industry. Tecnia Journal of Management Studies , 13 (2). Yin, W. and Xu, B., 2021. Effect of online shopping experience on customer loyalty in apparel business-to-consumer ecommerce. Textile Research Journal , 91 (23-24), pp.2882- 2895. 14

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