Home – New Forums Marketing mastery Mis-information in anti-online buying campaigns Propaganda by major retailers

  • This topic is empty.
Viewing 9 posts - 31 through 39 (of 39 total)
  • Author
    Posts
  • #1078822
    Steve_Minshall
    Member
    • Total posts: 518
    Up
    0
    ::

    While King goes and finds his ‘cuddly koala’ suit again :). I thought I would go back to the original post for a second.

    Now I didn’t think I would ever do this but I am going to come out in defence of Jerry Harvey. He has become the figure head of everything anti on-line and I don’t think this is fair.

    Some years ago HN had a go at on-line sales and it didn’t work for them. Jerry said something like: we spend thousands of dollars to set up on line for a few sales each day. Now I don’t know if they approached it right or not but I believe that main stream consumers in Australia (HN’s customer base) were just not ready to buy OL in the volumes necessary for a large organisation like HN to bother with.

    Now I think in the last 12-18 months the mainstream acceptance of OL in Australia has really accelerated and the time for HN to jump in is right. I don’t think this makes Jerry a hypocrite, he just said it as he saw it and now the environment has changed.

    #1078823
    King
    Member
    • Total posts: 2,212
    Up
    0
    ::

    Just heard a guy on ABC Radio National who was citing figures that only 5% of sales in Australia are done online. I missed where he sourced those figures.

    Do they seem low for all the hoo haa?

    #1078824
    Shaukat Adam Khalid
    Participant
    • Total posts: 1,528
    Up
    0
    ::

    it could be true but that’s at a macro level. you know very well that there are businesses who generate 100% of their income from online sales and there are those who are thriving in this economic downturn with 10% of their revenue coming from offline marketing.

    I tend to ignore national stats because :

    1. it messes with my mind – lowers my confidence
    2. makes me feel dependent on national economy when my personal economy is all that matters.
    3. sample size of which the data is based on is far too small in my opinion and the methodology for quantitative analysis could be biased.
    4. lies, damned lies, statistics.

    #1078825
    nduncan
    Member
    • Total posts: 98
    Up
    0
    ::

    Online selling is not going to go away. If B&M retailers don’t get online then they will be missing out on another potential sales channel as they see their main channel reduce.

    I find it annoying when wholesalers refuse to deal with purely online businesses and take a really negative view of items being sold on ebay. ebay is growing at a phenomenal rate and seems to be a viable channel for selling products.

    I recommend to all my B&M customers that they not only get an ecommerce site but also look at selling via ebay. From what I can see the future of retailing will be a mix of several sales channels (including social media) to sell the same items.

    #1078826
    King
    Member
    • Total posts: 2,212
    Up
    0
    ::
    nduncan, post: 100463 wrote:
    but also look at selling via ebay.

    I have tried ebay – poffered products at very attractive prices.

    The results were either people offering a quarter less again (despite my prices being 50% of retail (I don’t feel bad because we are wholesalers and this is end of line stuff) or no interest. Nothing wrong with the products, just the dribs and drabs at the and on the line that has sold well. So ebay has me really confused.

    #1078827
    King
    Member
    • Total posts: 2,212
    Up
    0
    ::
    hymstrategies, post: 100462 wrote:
    3. sample size of which the data is based on is far too small in my opinion and the methodology for quantitative analysis could be biased.

    Was based on CC sales nationally and gleaned from the card companies. How they can tell what sort of transaction, I don’t know….

    #1078828
    nduncan
    Member
    • Total posts: 98
    Up
    0
    ::
    King, post: 100473 wrote:
    I have tried ebay – poffered products at very attractive prices.

    The results were either people offering a quarter less again (despite my prices being 50% of retail (I don’t feel bad because we are wholesalers and this is end of line stuff) or no interest. Nothing wrong with the products, just the dribs and drabs at the and on the line that has sold well. So ebay has me really confused.

    Ebay takes time to learn where you need to post your products, keywords that you need to use and how you phrase the listing. From what I have seen if you have a relatively niche product you can sell it for the same price that you would sell it retail or in your online store. If you are selling really competitive consumer products that are only differentiated by price then it may be difficult.

    #1078829
    King
    Member
    • Total posts: 2,212
    Up
    0
    ::

    Interesting article on this topic about Harvey Norman
    http://www.theaustralian.com.au/national-affairs/wayne-swan-takes-aim-at-whinger-gerry-harvey/story-fn59niix-1226229309961

    The comments to the story are interesting as well

    I wonder how many small businesses closed as a result Gerry’s heavy discounting.

    You’ve given it Gerry, time to take it.

    #1078830
    shags38
    Participant
    • Total posts: 83
    Up
    0
    ::

    Hello again – it’s Mike here, the guy who started this thread which created some significant response.

    Interestingly I didn’t read the posts as they came in response but have just read the whole thread in one go. Very interesting and very varied opinions, all of which are correct, all of them.

    My precis of the thread for what it is worth;

    Gerry Harvey deserves both praise and criticism for his contributions to Australian retail both off and online.

    Harvey Norman, like Myer, David Jones, Dick Smith, JB HiFi and many other iconic names in Australian Retail have all “had a go” at doing business online at some point or other and all failed miserably – all are trying it again and unfortunately they are not likely to meet with much more success than previously by all accounts of the reports of success / progress.

    Why is that? Why do the major Australian Retailers think they know better than the Americans, the Europeans or more lately and more definitively the Asians? Why are the local retail giants trying to do it their own way? There are enough models of excellent success to use from overseas giants.

    What is the objective of their online parries? Gerry Harvey will not sell lounge suites online but should be selling gazillions of small appliances, software, DVD’s, Cameras etc – things that do not involve “physical taste or test”.

    In my humble opinion they are targeting the wrong products and wrong demographics.

    Doing “Business” Online, which is not exclusive to shopping, is not only here to stay but is growing – it will not however replace B&M retailers but being a an integral component of peoples shopping habits. But what people?

    Interesting stats – only 5% of people shop online …. but what is the percentage of those with the highest disposable income, the baby boomers plus the retirees …. far less than 5% I would venture to say mainly because they have not embraced the internet period let alone use it for shopping. Wait till the internet savvy Gen X kicks in when they replace the baby boomers as the demographic with the highest disposable income.

    Only 15% of the mobile phones in use in this country are Smartphones (Android or iPhone) – this is amongst the highest pro-rata population of mobile phone users on the planet. Are Smartphones expensive … no …. but they have features that a significant percentage of the population cannot spell let alone find a use for.

    At this point in time price is a major influence in online shopping and price is definitively more important to those without much spare cash – target that demographic (those demographicS) and your online business will likely be successful – conversely for B&M targeting the baby boomer demographic(s) will be a significant plus for their business.

    Trying to satisfy both, whether online or off is a recipe for limited success or even failure. Think about your products and your market – are they targeted correctly or is a shotgun approach being employed?

    so much to think about, right?

    cheers,
    Mike

    p.s. I have been in and out of this forum for a few years now and have suggested to “management” that they should have a section specific to “Doing Business Online”, not specifically retail but all aspects of all types of business, as doing business online is not a good thing to try or do but rather it is essential to the future success of EVERY BUSINESS and as such should be part of any successful business education and planning strategy. As such it is even more critically important to Solo Flyers. It is amazing how little many small business owners really know about marketing/selling online and yet their future success depends on knowing everything there is to know about it.
    Why am I saying this – well maybe others feel the same way and may be inclined to put their opinion to management who seem to think it is not all that necessary.

    p.p.s. No I am not in the business of looking for business as a consultant or web designer or anything like that. I am far too busy developing my own websites, 32 of them operating online to date as either retail selling e-commerce sites or as monetized sites, some successful and some not so successful …. I just know how much I have had to try and learn from bits and pieces rather than in one suitable forum.

Viewing 9 posts - 31 through 39 (of 39 total)
  • You must be logged in to reply to this topic.