A number of retailers, including Game, Maplin and HMV have recently reported a drop in online sales, as highlighted by Retail Week, which, at a time when retailers are reasonably expecting that their online channel can be relied upon to boost sale,s driving growth and loyalty, raises some important questions...
Like- does this mean that online sales growth across the piece is now levelling off? Is the electronics and enterntainment e-commerce sector maturing so sales are slowing? Or is it just an issue with these websites themselves- is the proposition not right so they are losing market share to better placed competitors?
Well, in my opinion, to some degree I suspect it is a little from column A, B and C.
Whilst there doesn't really appear to be any evidence that online sales growth is slowing across the piece- and indeed there are plenty of success stories suggesting the opposite, British Retail Consortium director-general Stephen Robertson has said that retailers are having to work harder to get the customers shopping online- promotions, marketing... in fact the same things they are having to do to get shoppers in their bricks and mortar sites.
And of course- the sector that these these retailers trade in, is one of the most mature on-line, and so inevitably the pace of growth seen in the past could not be sustained, especially in the face of some rather tough sector specific challenges- such as the decline of the physical music market, lack of innovation in the gaming market, rising price of electronics; and growing confidence in the economy encouraging people to go out again rather than save their money and buy a DVD for example...
But I can't help thinking that, when it comes down to it, if the e-commerce channel as a whole isn't struggling, and in fact is still showing strong signs of growth- these guys must be doing something wrong. Because if the customers are there, then it's all about the proposition. And if they were offering the right product range, at the right prices, with the right level of customer service/experience, then we'd be spending more money with them?
Although.. if everyone is having to work a little harder to get potential bricks and mortar customers through the door, and e-comm customers logging on, then yes they have to of course have to get these basics of retail right; but that isn't enough- that's a given (is this where these three are going wrong?). They also have to think about the whole multi-channel offering, and customer experience they are providing, to provide the point of difference that makes the sale.
In an age of 'considered consumption' we are thinking ever more carefully about our purchases, so successful retailers will need to do the same..
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