Many UK merchants are labouring under poor leadership and are struggling to
keeping pace with changing customer expectations, despite the UK being hailed as
the most mature online market in the world, according to experts at the first
annual E-commerce Expo in London.
Opening the event, James Roper, chief executive of industry body the
Interactive Media in Retail Group (IMRG) argued that the growth in broadband,
merchant capacity, and the familiarity of many consumers with the channel is
culminating in a “perfect storm of growth this year which will swamp any unready
vessels”.
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He added that only half of the brands in the IMRG’s quarterly top 50 list are
traditional bricks and mortar retailers, highlighting a huge opportunity for
those retailers. “All too often the problem is that the people running the
companies are the wrong people – they haven’t had the opportunity of gaining a
vision [of online retailing],” he argued.
Roper also argued that poor delivery strategies are still undermining many
online retailers’ businesses. “When we look at what people disapproved of the
top is always delivery - it’s just not good enough and we all know that,” he
said.
Roper also hinted at a new initiative is on its way in the next few weeks
from the IMRG, which will give merchants cheap multi-carrier options to offer
their customers, and could have “a huge impact on the quality of delivery”.
Tony Stockil, chief executive of retail consultancy Javelin Group, agreed
that convenience is the main reason that people shop online and those firms
which are able to drive convenience usually succeed where those purely competing
on price don’t.
Despite the immaturity of the internet retail market, the UK still leads the
way globally, in terms of the proportion of the population shopping online and
ad spend, argued Google director Matt Brittin.
But retailers are struggling with the increased competition, the different
economics and shift in balance of power to the consumer in this new environment,
he added. Brittin advised firms to improve their efforts to be found online, and
urged bricks and mortar stores to ensure they list all their items on the web
sites, even if they are not sold online, or risk losing customers who use the
channel to research offline purchases.
He added that firms could try YouTube marketing and other campaigns to
improve their web profile, but warned that any efforts should be coordinated to
present a clear message to the consumer.
“We need to think how to become more flexible to keep up with the consumer
and … ask ourselves ‘is this a core opportunity to us, should it be run by a
separate team, or outsourced’,” he argued. “A good way to approach [your site]
is as a work in progress – that mindset works well and is why many pure play
online vendors do well.”
But although it may be harder for traditional stores to adapt to this new way
of developing their online channel, many have an advantage in offering a trusted
brand which many consumers may seek out in the face of the “tyranny of choice”
online, as long as they are clear about what they stand for, he argued.
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