[Previous] [Next] - [Index] [Thread Index] - [Previous in Thread] [Next in Thread]

Subject: RE: UKNM: Toys R US - site, outdated - who does it???
From: Andrews, Stephen
Date: Thu, 28 Jan 1999 17:41:54 GMT

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 [tayloratnmcadplan [dot] com (mailto:tayloratnmcadplan [dot] com)]
Sent: 27 January 1999 16:29
To: uk-netmarketingatchinwag [dot] com
Subject: Fw: UKNM: Toys R US - site, outdated -
who does it???

Peter Shankman <peteratgeekfactory [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

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
We plan and buy web advertising
+44 181 639 0015

UKNM is sponsored by Excite UK, visit us at http://www.excite.co.uk.
Email Khalil Ibrahimi khalilatexcitecorp [dot] com (mailto:khalilatexcitecorp [dot] com) to advertise on Excite.
Change your UKNM subscription use http://www.chinwag.com/uknm.html

  UKNM: RE: was toys r us..., cait hurley

[Previous] [Next] - [Index] [Thread Index] - [Next in Thread] [Previous in Thread]