Friday, September 16, 2011

Here's to Myer's online strategy - I hope it works.

Finally, some positive news out of Myer!!!

As an ex-Myer stock boy it has a small place in my heart and I want to see it succeed, and with the news today that it is pumping $9 million into a re-vamped eCommerce site I can now smile.

Presumably there will be tight integration with their MyerOne program which accounts for two-thirds of sales. It'd be great to buy online using my points and not have to carry around plastic gift cards.

Now, I must sound out a word of warning though. While they say that they will increase SKU availability on the site to 250,000 by November, I hope that these will be meaningful and new SKUs - not just the same old thing.

Myer needs to remember that an online store is not just like building another department store - an online store should be a global hub of products. A department store competes with its close physical competitors, an online store competes with its global competitors.

Myer, if you want your online store to take my hard earned, you'll need to offer me what I want - and what I want isn't currently one of your 250,000 SKUs.

For your book department - have a look at Book Depository because that's where the books I buy are. For clothing, check out Asos or Urban Outfitters. And for electronics, I'm afraid to say you're competing with a zillion online retailers that compete on rock-bottom price.

Unfortunately with the high Australian dollar it's probably not an ideal time to start a domestic online store. Hell, even with $40 shipping, overseas purchases are usually cheaper than domestic department stores. But you have to do it.

Just remember - you're competing with the world. eCommerce means speed to market - if it's available in the US/Europe then you need it to be on your store too. eCommerce means variety - brands/sizes/colours.

Basically what I'm saying if you want to be an online department store in the modern day then you have picked a shit of a fight with a retail market that is fragmenting at light-speed. You want to be everything to everyone? I wish you the best.

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