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Have we gone f@r enough?
The internet seems to have moved from the top of the retailers' list of pet hates. This is not because it has disappeared but more because, as an industry, we have learned to adapt. Is this enough or is there further to go? Cathy Bryan investigates.
Published:  01 July, 2007

The history of retailing on-line has been one of boom and bust. In the beginning, many new companies set up on-line seeing it as a quick way to riches and it appeared that any on-line venture could attract limitless amounts of investment. Most failed. On-line trading is no different from other sorts of retailing - you've got to sell to make a profit!

After the failure of so many, it was understandable that established firms were slow to create an on-line presence but slowly and surely they have now done so. With only a few exceptions, the big names in on-line retailing also have a high street (or out of town shopping mall) presence. Some things sell well online. CDs, books, computers; these are things that you don't need to see in the flesh before you buy. Even so, there is still a market in the shops for these items. It's just not the market it was. For example, book shops are selling books that you didn't know you wanted! Books that you browse and then decide you'd like to read. Supermarkets are selling best selling titles that you can just pick up with your weekly shop.

And the nursery trade has also adapted in its own way. Thanks to many suppliers refusing to sell to certain types of trader, we seem to have lost most of the on-line traders who worked from the back bedroom, only ordering stuff they'd already sold. Some suppliers insist on the retailer having a shop or showroom, though there are some on-line only stores which are working well. Working out who is who on-line is not always that easy. Some on-line shops look to be completely independent but in fact they are just another trading arm of an established firm. “We do this,” said one who wished to remain nameless, “because we sell at different prices in store and on-line and we don't want the customers to get confused.”

Sales on-line are increasing. The latest figures for Mothercare show that their in-shop sales are falling behind the level of inflation with the preliminary yearend figures giving a rise of only 0.8% for like-for-like in store sales. However, sales on-line and over the phone are rising sharply with Direct in Home up 16.8% to £23.0M and Direct in Store up 21.0% to £24.8M. Other companies report similar figures. However, the 'big names' on-line are actually independent retailers - indeed some, such as Kiddicare, Glasgow Prams and Two Left Feet, have such large turnovers that many suppliers treat them in the same way as multiples. Their success also demonstrates that knowing the business is the key factor in succeeding in nursery.

One reason why the on-line retailers are less of a threat than they were is that prices seem to have stabilised. Although there is still the perception that things are much cheaper on-line, many on-line prices have risen as they find that having a decent website, holding large amounts of stock, introducing efficient systems to deal with orders and delivering one item to a home address doesn't come cheap. Stores have also cut their prices so that the difference is no longer so marked. Retailers who add in 'extras' such as a pushchair service can often clinch the sale. When faced with a customer who looks as though they are going to buy on-line, it is important to find out exactly what the real price is. Often the headline price excludes vital things such as delivery.

It's not so long ago that a pregnant mum would choose which pram she wanted and the shop would then order it the next time the rep came in. The supplier would get around to delivering it some time after the next shipment came in. Waiting six to eight weeks from order to delivery was quite normal - and generally accepted. Getting it delivered within a couple of days was one of the advantages of buying on-line. But life is moving forever faster. If something is ordered on-line and doesn't arrive within the week - then this is 'not acceptable'. The site has 'awful service' and the on-line reviews are very critical. Even television programmes like Watchdog have made 'slow delivery' a major failing to be investigated!

Several stores are now turning this to their advantage. By turning over more, not less space to storage, they can offer the customer the product there and then. The comment “and you can take it away with you today” could be one of your best sales lines!

Most retailers need some sort of on-line presence these days. Even if you aren't very computer literate and don't want to go down the road of selling online, then at the very least you need a web site which tells potential customers of your existence. So go for a simple one with just the basics. Tell your customers where you are. A picture of the outside of the shop is extremely useful as first timers then know what to look for as they drive down the road. Directions and details of where to park are also essential. The brands that you sell are another important factor since new parents have already got some idea of what they want to buy before they set foot in a shop. Then put in something to persuade them to make the journey. Telling them how good your service is is one possibility. Good levels of stock is another.

Selling on-line needn't be difficult. The biggest problem is finding a web site design company to work with. The advice is generally to check them out thoroughly. Look at the other web sites they have created; find out what you like and dislike about the design. Talk to the people in those companies and find out how easy it is to deal with the designers. Understand exactly what it is you are getting for your money. Another tip is that once the web site has been built, keep as much control as you can in-house and be prepared to spend as much time as is necessary to get it right. Like many things, setting up a web site takes longer than you think!

Suppliers are generally more on the ball, and I think that most of them have a web presence. In many ways, it is easier for them as they don't have to do more than describe their products. However, a quick look around a selection soon shows that some are better than others! One I've just looked at has little more than pretty pictures. At the other extreme, another doesn't show the various colours their product comes in. Many don't give much information about the technicalities of the product or where a prospective purchaser can see and buy the product. A big failing of many is that the site is not kept up to date. Last year's colours are a definite no, but so is a retailer list that is completely out of date. A website is a major tool for selling, use it!

The importance of the internet in everyday life is beyond doubt. New parents use it to find out everything about their pregnancy from minor ailments to baby's development and to what they need in the way of pushchairs. Sites such as Babyworld have the facility for parents to review the products they have used. As with all such reviews, there is a lot of emotion tied into what they say. With one or two reviews this can lead to a bias, but once you get nine or ten, then you start seeing both sides. For example, I've just been looking at the reviews on-line for the Bugaboo Chameleon. This is an expensive buggy and I suspect that some of the parents cannot bring themselves to criticise something when they have spent so much money on it. But some do, and you begin to see the picture of a fashionable, popular buggy with many good points - and some not so good points. Reading all of this, I feel you get a reasonable overall view of the strengths and weaknesses of the product.

On-line reviews have no particular axe to grind. In a shop, there is always the feeling that the salesperson is out to get a sale whatever it takes. As one of the candidates on The Apprentice said on a recent programme, “I'll say anything to get a sale, even lie if I don't know the answer”. And that's what all salespersons do in our mythology.

Bricks and mortar shops pride themselves on knowing all about the products they sell and what a new mother really needs. However, this is changing; some customers are coming into the shop knowing more than the assistants do. This is where I see the biggest danger for the future. If you aren't one step ahead of the customer, where are you?







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