RE: UKNM: RE: was toys r us...

[Andrews, Stephen]

Couldn't agree more about the brand stuff - it's important not to shag

what you have spent years (& £s) establishing.


		-----Original Message-----

		From:	cait hurley [

caitlondon [dot] virgin [dot] net (mailto:caitlondon [dot] virgin [dot] net)

]

		Sent:	28 January 1999 17:58

		To:

uk-netmarketingchinwag [dot] com

		Subject:	UKNM: RE: was toys r us...


		It would seem apparent to me that all (at least a very

large percentage) of

		these big High street retailers that people assume are

quaking in their

		boots in the shadow of Amazon et al will be as we speak,

working out what

		are probably the final parts of their Net strategies,

which they have been

		carefully working out for the last year/two years.


		I mean, wouldn't you want to make sure your brand, that

known and beloved

		by a whole nation, did the right thing online, and not

some cobbled

		together load of old nonsense that needs a complete

re-design in less than

		three months.


		?

		..and as if you needed telling, Amazon's shares haven't

exactly been

		blazing a trail since xmas. 


		At 09:35 28/01/99 -0000, you wrote:

		>Don't the big retailers need someone to tell them that

this whole thing

		>is an opportunity rather than a threat (isn't that the

new media

		>marketeer's message?).

		>

		>Hypothetically, take Tesco : they move from selling

everything off the

		>shop floor to selling 70%+ online and then distributing

it themselves to

		>the consumer or have the consumer "drive-thru" and

collect (impulse buys

		>and petrol etc still possible).  Suddenly they can put

their "brix &

		>mortar" to a different use - they utilise what is

already a mammoth,

		>organised, efficient distribution mechanism for

shifting other people's

		>stuff.  Overnight (well in conventional re-engineering

terms anyway),

		>they have moved from retailer to logistics company,

have somewhere

		>approaching the same level of sales, less cash tied up

in large stores

		>stocked to the gunnels, lower cost of sale, still get

the hugely

		>profitable petrol and impulse sales happening, forge

closer

		>relationships with their customers (if delivery to my

home works once,

		>why would I then change), compile a bigger/better

consumer database for

		>other ancillary marketing activities, and still utilise

their investment

		>in transport/storage/warehousing to a truly profitable

end.

		>

		>Pie in the sky? Maybe but not really beyond the wit of

anyone who lets

		>the imagination run a bit and doesn't get freaked by

the idea that this

		>thing is a threat to conventional business/retailing.

Of course it is -

		>why should that be a negative?

		>

		>Spread the word!

		>

		>Steve Andrews

		>Business Analyst

		>Cable & Wireless PLC

		>

		>		-----Original Message-----

		>		From:	Ray Taylor

[

taylornmcadplan [dot] com (mailto:taylornmcadplan [dot] com)

]

		>		Sent:	27 January 1999 16:29

		>		To:

uk-netmarketingchinwag [dot] com

		>		Subject:	Fw: UKNM: Toys R US -

site, outdated -

		>who does it???

		>

		>		Peter Shankman <

petergeekfactory [dot] com

>

wrote

		>

		>		>Hi Leslie...

		>		>

		>		>I think that the Toys r' Us site is a

perfect example

		>of what the web is

		>		>doing to the big monster companies...

		>		>

		>		>These companies,, (Toys r' us, WalMart,

KMart, Sears,

		>etc...)  can't afford

		>		>to go on the web, and can't afford to

have people shop

		>online. Why? If they

		>		>do, they canibalize (forgive the

spelling) their own

		>stores. These stores

		>		>have millions upon millions upon

millions of dollars

		>invested in stores,

		>		>people, parking lots, bricks, mortar,

etc... If they

		>start selling on the

		>		>web full force, they eat into what

they've spent so

		>much money to build.

		>

		>		This is an assumption made by many

retailers, and is a

		>similar fear to that

		>		expressed by print publishers a couple

of years ago.

		>

		>		But I think it is wrong to assume that

big retailers

		>have everything to lose

		>		by going online. Particularly when you

consider what

		>Dixons and Tesco are

		>		doing.

		>

		>		By adopting the Internet as a serious

alternative route

		>to market, retailers

		>		not only have the chance to develop

additional revenue

		>streams, service more

		>		customers from within bigger catchment

areas, buying

		>more products, spending

		>		more money, and costing less money per

transaction (if

		>done right) - they

		>		also protect themselves from new web

retail brands

		>stealing their business.

		>

		>		The ones that lose out will be the ones

whose

		>fuddy-duddy old directors

		>		refuse to take action now and leave it

until they have

		>an Amazon biting

		>		their corporate bums before they do

anything about it.

		>And I know a couple

		>		of big brands about to find out what

teeth in the

		>posteria feel like.

		>

		>		As for not updating your site, that's

just bad

		>management, bad customer

		>		service, and those that allow that kind

of thing to go

		>on are in line for

		>		their P45s anyway, regardless of the

impact the internet

		>may or may not have

		>		on their retail operations. Customer

service at

		>		Toys-R-okay-butchildrenareapain already

stinks, so it

		>won't get any better

		>		by translating it to the web.

		>

		>		It is not a technology issue, it is a

customer service

		>issue. Direct

		>		customer sales operations (eg Direct

Line insurance)

		>work well because they

		>		match their customer service needs while

increasing

		>sales and reducing

		>		costs. Anyone can buy a bunch of

telephones and put a

		>bunch of telephone

		>		operators on them, and telephone

technology has been

		>around for a hundred

		>		years. What counts is the application -

the customer

		>service. Which is why

		>		First Direct bank is a huge success and

		>Barclays/Lloyds/NatWest etc

		>		telephone banking is a big joke.

		>

		>		Tesco and Dixons have the right idea,

although

		>implementing it differently.

		>		WH Smith is a little late but there is

still time to

		>catch up. Wonder who'll

		>		be next. Boots?

		>

		>		Ray Taylor

		>		NMC/Adplan

		>		We plan and buy web advertising

		>		+44 181 639 0015


	

-------------------------------------------------------------

		Cait Hurley                                     0171 479

4420

		Producer, Member Services                       ICQ:

1257510	

		http://www.virgin.net/vnet/                pager:01523

149804

	

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