UKNM: RE: was toys r us...

[cait hurley]

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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