Go Online In Times Of Financial Crisis
Even as US officially slumps in to a recession, thousands of retailers are going online to sell their products and services online. In a bid to reduce their operational overheads, high street spending and people cost, brick and mortar businesses are moving their sales to the web. ’Brick and Mortar’ businesses are moving towards ‘Click and Brick’ models. A classic example of this model is Borders, where customers can reserve books online, then pick them up in the store.
In the US, GAP sells more jeans online than the total sales in all their physical retail outlets combined! iTunes is another major global online retail success story.
The leading industries that rely on the internet for online sales are:
- Computer hardware and software
- Consumer electronics
- Books, music and videos
- Motor vehicle and parts
- Furniture and home furnishings
- Building material and garden equipment
- Food and beverage
- Health and personal care products
- Airlines and hotels
- Travel services
- Sporting goods, hobby, book, and music stores
- Clothing and clothing accessories
- Flowers and specialty gifts
- Grocery items
Online retail sales for most e-retailers are ramping up heading into the holiday season.
In the developed economies, online retail sales account for 10% of total sales turnover, which is proportionately matched with the total online marketing ad spend. A staggering 90% of consumers said they have researched goods online before purchasing them offline.
In the Middle East, the online ad spend hovers around 1% of total ad spend and the online sales are abysmally low. However, because of the current global financial crisis, more consumer goods retailers are now building their online stores.
Local banks like Emirates International and Mashreq Bank provide online merchant accounts that support secure payment through credit cards. Paypal has also recently extended its network to cover select Middle East countries including UAE.
There is a definite case for retailers to establish their virtual storefronts now than ever before. All it calls for is a few thousand dollars and a vision for the future.
The future is here!
To set up your online store or for comments on this article email sharad@cyber-gear.com
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