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PROMATIS asks: Online stores as sales channels - worthwhile or not?
Commentary by Dr. Frank Schönthaler, CEO, PROMATIS Corporation
Adidas has switched off the lights in its European Internet store. Company sources say that the e-store opened for the 2000 Olympic Games had problems keeping its offerings up-to-date. Reports in the trade press to the effect that low sales turnover were to blame were denied. Whatever triggered this decision, was it premature or is this just the beginning of the online store's demise in Europe? I favor the "e" before "stores" - even in Europe - if the product is right.
In Europe, not only the consumer, but also the business customer, is very reserved at first when it comes to new technologies. Broad-based utilization can only happen when the necessary trust in new technologies has been generated by innovators, and skeptics have been "silenced" by demonstrated success. Americans, on the other hand, could reasonably be characterized as "technology-crazy". Technological innovations are immediately accepted simply because they are new, and cleverly crafted advertising messages are often naively misinterpreted as true success stories. Innovations thus gain acceptance much more easily and quickly.
I am completely convinced that any company today that is not consistently investing in the area of e-commerce and gaining practical experience in getting its customers "accustomed" to the new sales channel, will sooner or later suffer real competitive disadvantages. This applies particularly to companies that target the end user. This is the "business-to-consumer" business that has been getting so much attention because of the many market flops. Companies with excellent market positioning and a functioning infrastructure that allow for first-class fulfillment of orders and customer-oriented service will be the winners in the online commerce game - if they are already investing enthusiastically in their e-commerce future today.
In the future, the greatest potential will be found in new products that only Internet use will make possible. For example, service products offered by banks and insurance providers or by the telecommunications and public utilities industries that can be configured and purchased by the customer in online self-service procedures suited to his concrete needs.
If you can pass the cost advantages generated by the e-store sales medium on to the consumer and combine them with unique buying experiences, fast reply times and first-class service, you can turn success into hard cash - even in Europe. Online commerce will not die in its cradle. That's why I think the market withdrawal of Adidas is premature!
| | - Dr. Frank Schönthaler founded PROMATIS Informatik Beteiligungs-GmbH and PROMATIS Informatik GmbH and Co.KG as spin-offs from the University of Karlsruhe and took their helm as managing director in 1990. Since changing their name to PROMATIS AG in 1999, he has been CEO of the PROMATIS group, which now owns 8 subsidiaries and branches in Germany, Austria, Switzerland and the U.S.
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The core competency of PROMATIS lies in the implementation of e-business solutions packages based on the Oracle Internet platform. e-business processes are also implemented in business portals that make not only business process functionality but also the entire body of knowledge already gained by the company speedily available. Software products, consulting, training and development services enable PROMATIS to cover the overall area of organization and business information processing. -
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