The verb that describes the process of retailers ignoring the shift to digital: payment, e-shopping, mobile selection of destination, on-line reviews, and so on.
The business model is rapidly evolving, whatever your current model may be, nothing is set in stone, or even rubber. To survive, business models need to be granular pieces of collaborative capability that capture the instantaneous, mobile, web-enabled future.
Currently, our esteemed political leaders are debating how to extract GST from net sales, bleating about the lost revenue that should go to hospitals, schools, and perhaps overseas study tours. It has happened for the last few Christmases; the retailers’ association generates some on-line sales numbers, then applies GST, hyping up the lost revenue to pollies who are too silly to recognise the flaws in the logic:
- Not all sales over the net are “lost” sales to bricks and mortar retail: the net is a demand generator, it does not simply suck sales away from retail.
- Not all net purchases are from international sellers: many are domestic, on which the GST is collected.
- On-line sales are growing strongly, but are still a modest 6.3%, according to the latest NAB survey. Optimising the other 93% would seem more productive than bleating about the little they lose.
- The compliance costs will be huge. Irrespective of how many economic models are generated, common sense would lead to the conclusion that a significant percentage of parcels would need to be opened, and heavy fines imposed, to put a brake on international purchases. If Customs cannot stop the flow of drugs, guns, and such by post, what makes them think they can be more effective slowing the flow of Barbie dolls and books at Christmas?
- Our retailers have the perfect right, if not the capability, to sell internationally, boosting their numbers. Obviously, boosting capability would seem sensible.
The world has moved on. Being “netf…ked” is optional – a choice in the hands of management. So, why not set out to be the netf..ker” rather than the” netf..kee”