RE: UKNM: Toys R US - site, outdated - who does it???

[Andrews, Stephen]

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		Subject:	Fw: UKNM: Toys R US - site, outdated -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



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