CReATION: E-tail enthusiasm is no more than simple hype, claims Miles

Not only is the business of e-tail amateur and unprofessional, but it is unlikely to succeed in cities such as Hong Kong - that was the message loud and clear at the Retail Marketing Seminar 2000, organised by MEDIA. Speaking at the seminar, Mr Rodney Miles, managing director of Strawberry Net, described "e-tailing - the new wave" as mere hype, likening its future to the past let down of mail order services. "E-tailing in Hong Kong has no future. Forget about trying to sell over the Internet in Hong Kong because it is just too convenient here ... If you have a different idea, like Admart, it may be an opportunity, but not for the mass market," Mr Miles said. However, he added that e-tailing would present an invaluable opportunity for Hong Kong to sell directly to the consumer and discard its decade-long stance as middleman. To host a successful e-tail site, Mr Miles said it was important to think international, both in terms of delivery and payment. "There are few e-tail sites in the US which can ship outside the US. Although there is not much difference in the cost, it is just not in their mentality ... You have to think about currency and be able to quote pricing in different currencies. Having a currency converter is no good because it still means the consumer has to do more," said Mr Miles. He said one restriction the Web presented was an inability to offer the "very important feel and touch" factor and dismissed recent reports of technological breakthroughs that would permit Internet users to "sense" smell and touch through a PC. The high cost of designing a website, according to Mr Miles, can also be avoided with a little research. He stressed the design should be simple, convenient and user-friendly with the customer in mind. And, when it comes to advertising on the Internet, Mr Miles urged more professionalism from search engines. "Banner ads are also amateur, because the Internet produces statistics that no one can quote or guarantee. Direct mailing is good if you can buy a list ... but then only one in 10 is good, so it is a case of trial and error. "In the next 10 years, at the very maximum, e-tail will amount to 12 per cent of sales. And, that is being very optimistic." According to Mr Miles, what will sell on the Internet is branding the right product, which is unavailable to consumers because of location. However, Mr Miles did attribute one advantage to e-tailing, suggesting it would eventually drive down the high cost of commercial renting in Hong Kong.

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