Next-Gen Retailers Set Up Shop on the Web
Fear of crime, lack of funds, and concerns about attracting enough customers are driving the UK's next generation of retailers away from the high street and onto the internet.
A study commissioned by e-commerce software developer Actinic claims that budding retailers are scared of physical crime and that they are turning to 'e-tailing' instead.
While the UK remains a nation of shopkeepers, with four out of 10 would-be entrepreneurs citing running a retail business as the most favoured new business idea, 68 per cent said they would sell online if they had the necessary technical support.
Although UK shoppers spent GBP8.8bn online in the 12 months to July 003, according to figures from the Inter active Media in Retail Group, online fraud is costing retailers many millions of pounds each month. The National Hi-Tech Crime Unit believes that 50 per cent of businesses do no report e-crimes because of fears about the disruption it would cause. Many also believe that the police lack the resources to deal with the crime in the first place.
And while you cannot get mugged online or get bored standing in a virtual checkout queue, selling online can be more volatile without the proper back-up.
The survey of 1,000 UK citizens over the age of 25 was conducted by Ipsos.
29 August 2003
Benetton 'smart chips' from Philips
Italian clothing manufacturer Benetton has placed an order of 15 million Id chips with Philips Semiconductor. Philips announced this on Tuesday. The radio frequency identification (RFID) chips will be used in efforts to improve Benetton's supply-chain management system.
What this means is that a box containing clothes of varying styles, colors and sizes can be scanned, and the information can be uploaded to Benetton's inventory tracking system instead of having to be checked in one piece at a time. The process could be faster, more accurate and efficient than bar codes because it wouldn't require the unpacking and hand checking of each garment.
While the market for RFID chips is small now, their potential for improving visibility of inventory on an almost instantaneous basis is of significant value, said Karsten Ottenberg, senior vice president of Philips.
In the case of Benetton, labels on its Sisley clothing brand have been fitted with Philips' RFID-enabled i.code chips. The chips, which are incorporated into the clothes during manufacturing and are imperceptible to the consumer, indicate where a garment is in the inventory process or within the company's 5,000 stores.
Earlier this year, Gillette, Wal-Mart and U.K.-based supermarket chain Tesco announced a plan to install specially designed shelves that can read radio frequency waves emitted by microchips embedded in millions of shavers and related products. Prada in New York has been successfully using the technology for almost a year now.
March 13, 2003
Another phone in fashion
After the launch of Siemens Xelibri, now Motorola is forging ahead into the world of fashion accessories, blending its wireless technology with the style of a hip-hop tycoon. The company has signed a multiyear deal to produce limited editions of its iDEN mobile phone for Russell Simmons' Phat Farm men's-clothing line and Baby Phat, a women's line run by his wife, designer Kimora Lee Simmons.
The phones -- complete with color screen, two-way pager, Internet access and long-range walkie-talkie capabilities -- are to be produced at Motorola's Plantation facility. The Baby Phat phones, in pearly pink - Kimora Simmons' favorite color - come with a pink carrying pouch. They sell for 549 USD.
The Phat Farm licensing deal, which began with a small run of silver-colored iDEN phone that Simmons sold during Fashion Week in New York last fall, is not the first for Motorola.The firm has produced a limited-edition line of red phones for Swiss Army (the better to coordinate with one's Swiss army knife). It also has made two phones for Bloomingdale's, the New York-based department-store chain, with the phones coming in two models: the Pearl and the Translucent.
March 6, 2003
Drugstore.com starts international shipping
Drugstore.co, the US health and beauty online drugstore, will start shipping
internationally in the Q1 of 2003. Through a partnership with international
e-commerce specialist Comerxia Inc. consumers in 28 markets worldwide will be
able to order products from the company, as well as non-prescription drugs.
Comerxia will take care of logistics for international shipments and provide
marketing support and customer service locally.
International customers will be directed to download a shopping assistant application hosted by Comerxia. The shopping assistant then interacts with the website and determines whether selected items can be shipped overseas, then calculates duties, taxes and shipping charges.
The company additionally announced preliminary sales of USD 55 million (GBP 34 million) for the fourth quarter of 2002, an increase of more than 26%. Drugstore.com expects to break even in terms of EBITDA in Q4 for the first time since it began operations in February 1999.
www.drugstore.com
January 9, 2003
New system analyses shopping behaviour
A new classification system that segments male and female consumers into different
'fashion categories' has been designed to provide retailers with an insight
into the clothes shopping habits of the UK's 44 million adults.
The new system has been launched by Experian, a global information solutions
company. The system will provide highly focused information on shopping behaviour.
It combines Experian's demographic and lifestyle data with fashion buying research
from FashionTrak, part of the Taylor Nelson Sofres market information group,
to provide retailers with access to a quantitative segmentation system.
Traditionally, retailers have had to rely upon small-scale qualitative research,
using this as a framework for crucial marketing and network planning decisions.
In the UK, the clothing and footwear market accounts for around GBP 31 billion
and this sector is projected to grow by almost five per cent a year. This market
is highly brand-led and needs to take account of consumer aspirations.
Fashion Segments can be tailored specifically for each client. By identifying
demographic and attitudinal information on customers and prospects, this knowledge
can be used to establish the different characteristics of shopping behaviour
for all UK consumers.
October 29, 2002