Case Study on the Operation of Small Capital Online Fashion Stores : Focusing on 4P Mix

This study analyzed the 4Ps strategy by selecting 10 cases of small-capacity online fashion stores currently operating successfully to determine how small-capacity online fashion stores can be successfully operated in the rapidly growing, but highly competitive, online shopping market. The research results are as follows. First, the selected small-cap online fashion stores were small shopping malls, but each had their own strategies for product development, product composition, and product procurement. Second, due to the competitive nature of the online market, the cases involved stores that used low-cost or reasonable pricing strategies. The standard for commodity pricing was also distributed evenly among cost, customers, and competitors, and all cases had differentiation strategies, such as no-sale, reasonable price to quality, lowest price, and differentiation according to sales channels. Third, all cases used various distribution channels, including blogs, Instagram, select shops (both online and offline), portal shopping malls, open markets, offline pop-up stores, airport rental shops, and designer shared spaces in addition to sales distribution through their online stores. These distribution channels were also used as a platform to do sales promotions of brands and their fashion store. Fourth, due to the nature of the online fashion market, all cases were heavily focused on SNS promotion, such as through Instagram, blogs, Twitter, exposure and promotion through online select shops, open markets, portal shopping malls, and influence strategies. In addition, publicity was used through online lookbooks, select shops, pop-up stores, and exhibitions. These results can be practically used in the start-up of small capital online fashion stores that have emerged as an alternative to employment and unemployment. In addition, the findings of this study can be used as data to generate successful operation strategies to ensure business continuity after the establishment of an online shopping site.