Critical success factors for e-tailing: case studies of clothing retailers in Cape Town

Abstract

The South African retail apparel industry is undergoing transformation in that e-tailing is proving to be a lucrative way of trading. Although apparel e-tailing has not taken off to the same degree as in developed markets, e-tailing continues to be a growing market with great potential for new entrants to thrive. Yet so far, a small number of apparel e-tailers have dominated the market. In order to make useful sense of their progress and achievement, it is necessary to explore the critical factors contributing to their success. Identifying such factors would seem to be imperative for the survival of e-tailers trading in a turbulent economy such as South Africa’s. The objective of this study was, therefore, to identify a gap in literature by determining and examining the critical success factors of leading pure-play online apparel e-tailers and omnichannel or hybrid retailers based in Cape Town. The study intends to use four case studies to allow the researcher to acquire an in-depth perspective on each selected company’s business environment. The study employs a Systems Theory to investigate the nature and key interactions of the organisations. The literature points to a relationship between these business elements and critical success factors. The research adopts an interpretive approach to generate qualitative data. The data emanates from semi-structured interviews with three individuals connected to each of four organisations. The CSFs found in the study can help apprise potential market entrants of the factors requisite for an e-tailing business to prosper. The findings of the study revealed the most fundamental CSFs contributing to e-tailer success. Overall, the study established and contributes the main challenges experienced by apparel e-tailers, strategies to combat the challenges and finally, an effective growth and development framework to guide existing and potential apparel e-tailers.