Retailers Wary of E-commerce

Computer retailers are keen to embrace the electronic commerce opportunities created by the internet, but not at the expense of their existing store operations.

According to a report by consultancy Cap Gemini, which interviewed over 100 European retailers on their ecommerce strategies, the majority of retailers working outside traditional mail order expect 13 per cent of their sales to be via home shopping within two years. This is expected to rise to 26 per cent in 10 years.

But almost 60 per cent of respondents said electronic channels would not affect the way they do business. According to Cap Gemini, most retailers are thinking short-term and tactically, and plan to run their outlets and electronic channels side by side.

The retailers? approach is very different from that of the business and industrial world, which sees electronic commerce as a major business opportunity.

A report by Diebold and Bertelsmann Telemedia, which interviewed over 200 blue chip companies, showed that these firms see online trading as a way of identifying new markets with low entry points.

The research found that most blue chip companies believe the switch to electronic business will have a major impact on their core IT systems and will force them to rethink current business processes.

Nick Gill, international retail director at Cap Gemini, said: ?Although the more advanced retailers interviewed for the study are looking to enhance products and services via electronic channels, none of the respondents see price discrimination as an opportunity. Retailers are selling on convenience, not price.?