In the rapidly evolving landscape of digital commerce, companies continuously seek innovative strategies to align with the increasingly diverse and sophisticated demands of consumers. One emergent model that has captured significant attention is the buy-online-and-assemble-in-store (BOAS) approach. This hybrid model uniquely integrates the convenience of online purchasing with the hands-on assistance and personalized service available at physical retail locations. By enabling customers to order products online and subsequently collect, customize, or assemble them in-store, BOAS aims to blend efficiency with enhanced service quality. Despite its growing adoption, the precise implications of BOAS for firms, consumers, and environmental sustainability have remained ambiguous—until a new study led by researchers at South China University of Technology has shed critical light on these dynamics.
Published in the prestigious journal Sustainable Operations and Computers, the study elucidates the multifaceted effects of introducing BOAS channels within a monopolistic market structure. The focal point of the analysis lies in products that intrinsically require customer participation in assembly or post-processing for optimal utilization. The unique challenge addressed involves navigating consumer heterogeneity, particularly differences in post-processing proficiency and preference structures. By dissecting how these variables interact with cost factors and firm strategies, the research presents a nuanced framework revealing when and how enterprises might profitably adopt BOAS.
At the heart of the research lies the dichotomy between two distinct consumer archetypes: professional and amateur. Professional consumers possess considerable expertise and skill in post-purchase product handling, thereby placing greater weight on price competitiveness and product quality. In contrast, amateur consumers typically lack advanced assembly competencies and thus prioritize convenience, ease of service, and quality of in-store support. This classification is critical, as firms must strategically balance channel offerings to suit these divergent consumer profiles, ultimately influencing demand patterns and profitability.
According to lead author Guanxiang Zhang, the firm’s decision to implement BOAS is highly contingent upon the proportion of professional consumers within its customer base. When a significant share of the market comprises professionals, companies find BOAS adoption more appealing due to the synergy between consumer capability and the cost structure of post-processing assistance. Conversely, when amateur consumers dominate or when associated costs—such as handling, travel, and perceived service value—escalate, firms face disincentives to maintain or introduce BOAS channels. This conditional calculus emphasizes the importance of granular market segmentation and cost analysis in omni-channel strategy development.
Interestingly, while BOAS enhances consumer experiences by offering tailored services and flexibility, the study cautions that such improvements do not unequivocally translate to increased consumer welfare. Under conditions where professional consumers constitute a large market segment, the implementation of BOAS may paradoxically diminish consumer surplus. This counterintuitive finding stems from the increased retail prices and possibly constrained demand in the online channel. The researchers cite real-world examples such as Uniqlo’s struggle post-BOAS introduction, contrasted with TUHU’s robust competitive positioning in automotive services that effectively leverages BOAS.
From an ecological perspective, the centralization inherent in BOAS offers significant environmental benefits. By consolidating the final assembly or customization processes at physical stores, companies can optimize material utilization, reduce packaging waste, and lower energy consumption associated with last-mile logistics and individual product handling. These efficiencies collectively contribute to a reduction in the environmental footprint, aligning firm strategies with broader sustainability objectives—a critical consideration for future-proofing operations amid mounting regulatory and societal pressures.
The pricing ramifications of incorporating BOAS channels are complex. Corresponding author Lipan Feng explains that retail prices in the online segment may rise to offset the costs of enhanced service delivery and assembly support. Such price adjustments invariably impact total consumer demand, necessitating a delicate balance to maintain market competitiveness while sustaining profitability. The model developed in the study offers analytical clarity by capturing these intertwined effects, thereby enabling firms to calibrate pricing and channel strategies with improved precision.
This research not only elucidates the strategic calculus behind BOAS adoption but also enriches the scholarly discourse on omni-channel retailing by integrating behavioral economics with sustainable operations management. Through game-theoretic modeling and rigorous simulation, the study delineates how firm decisions ripple across consumer preferences, production costs, and environmental outcomes. These insights deliver actionable intelligence for industry leaders navigating the increasingly complex nexus of digital transformation, consumer heterogeneity, and sustainability imperatives.
For practitioners, the findings serve as both a caution and a guide. A uniform rollout of BOAS without accounting for consumer skill distribution or cost structures could lead to suboptimal outcomes. Strategic segmentation, targeted marketing, and adaptive service models emerge as critical levers to harness BOAS’s potential fully. Moreover, firms must remain vigilant to dynamic market feedback loops and evolving consumer expectations to sustain long-term advantages.
In examining the broader retail ecosystem, the BOAS model exemplifies a trend toward experiential commerce where value creation extends beyond the transactional phase. By offering assembly services coupled with physical interaction, firms rekindle consumer engagement in an era dominated by impersonal e-commerce transactions. This hybrid channel configuration fosters incremental revenue streams, brand loyalty, and differentiation while potentially mitigating the environmental impact—a confluence of interests increasingly vital in the modern commercial zeitgeist.
The implications of this study transcend industry boundaries. As sectors from automotive to electronics confront similar challenges in balancing convenience, customization, and cost efficiency, insights from this research are widely applicable. Particularly in mature markets where consumer experience and sustainability drive competitive advantage, BOAS stands poised as a transformative paradigm—if implemented with analytical rigor and contextual sensitivity.
Ultimately, this pioneering work contributes to a more sophisticated understanding of the buy-online-and-assemble-in-store approach, revealing that its value hinges on a complex interplay of consumer skills, pricing dynamics, operational costs, and environmental considerations. Firms aspiring to thrive in the omni-channel realm must thus adopt multidimensional strategies that not only accommodate heterogeneity but also leverage it as a source of differentiation and resilience.
Subject of Research: Effects and implications of the buy-online-and-assemble-in-store (BOAS) approach on firms, consumers, and environmental sustainability.
Article Title: Effects of the buy-online-and-assemble-in-store approach: Implications for firms, consumers, and environment
Web References:
10.1016/j.susoc.2025.03.001
Image Credits: Lipan Feng, et al.
Keywords: Game theory, Behavioral economics, Sustainable operations, Omni-channel retail, Consumer heterogeneity, Pricing strategy
