Comments on: Have your say – Is an investment in online technology the solution for surviving the recession? http://www.cculture.co.uk/?p=579 a quarterly update for anyone in the retail sector Sun, 05 Sep 2010 10:30:41 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: adam@rsw.co.uk http://www.cculture.co.uk/?p=579&cpage=1#comment-21 adam@rsw.co.uk Wed, 03 Jun 2009 10:27:05 +0000 http://www.35communications.com/CDG/?p=579#comment-21 I suppose the answer lies with what your direct competitors are doing. I know that sounds glib but please bear with me for a minute. If your and your competitors sales are £250m and you start a website and that site takes 10% of your sales out of your shops, then you are still selling £250m. If your competitor DOESN'T have a website then you may also take 10% of THEIR sales, ergo you are now £275m and they are £225m. But if you both have a website or neither of you do, then the status quo (or whatever you want, sorry, little muso joke there for you!) remains and normal market conditions will dictate consumer preference. The question is does online grow sales in your sector or move sales out of shop and online. I believe the latter to be true. But I am willing to hear other thoughts on the subject ... I suppose the answer lies with what your direct competitors are doing. I know that sounds glib but please bear with me for a minute.

If your and your competitors sales are £250m and you start a website and that site takes 10% of your sales out of your shops, then you are still selling £250m. If your competitor DOESN’T have a website then you may also take 10% of THEIR sales, ergo you are now £275m and they are £225m.

But if you both have a website or neither of you do, then the status quo (or whatever you want, sorry, little muso joke there for you!) remains and normal market conditions will dictate consumer preference.

The question is does online grow sales in your sector or move sales out of shop and online. I believe the latter to be true. But I am willing to hear other thoughts on the subject …

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