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PROFITS What's New on the Internet? Virtually Everything By Erinn Morgan In the 1999 New York City Marathon, many of the top runners were wearing sensors that actually tracked their progress on the Internet. Given this type of technology, the future could certainly hold putting sensors on your kids to track them throughout the day. Or on your dog to track him around the neighborhood. Or, more interestingly, on optical merchandise to track its progress from manufacturing to final sale.
It is no news to any of us that computers and the Internet are changing our lives and the ways in which we do business. But can we all keep up with the speed at which it's growing? There is more computer technology in the average new car turned out by Detroit today than the Apollo Moonlighter had 20 years ago. The changes are truly astounding. The Internet sees 16 new Web pages launched every second. In 1999, more than 200 Internet companies went public, raising more than $20 billion in equity. This number is more than double the number of Internet companies that went public in the previous four years. The area that is creating the most buzz right now is e-commerce, as retailers and suppliers in all industries scramble to sell their wares on the Internet. But what's holding it back from moving even faster? Fears of putting credit card numbers or personal information on the Net, doubts about delivery times of merchandise or high shipping costs, and concerns about product availability. Online retailers are spending time and money to help customers over their online purchasing fears. Many find that the best way to create a sense of trust with the retailer is through transactional accuracy and post-sale activity with returns or questions. Dan Nordstrom, CEO of Nordstrom.com, says that over 30 percent of the time there is some question on the product purchased online and that this is the time to differentiate yourself and show customers that you will go the extra mile. "You can't smile and help customers online, so maintaining accuracy and follow-through is the way you build relationships," he says. THE FAVORITES FILE But today's e-tailers will tell us that it takes way more than just a name to make a good business. E-tailers are employing creative, technology-breaking, individualized, and specialized services to their online customers. Bluefly.com is one example of a hugely successful, off-price clothing e-tailer that has grown more than 1,000 percent year-on-year since its inception. Its founders believe in offering personalized service on their Web site to create customer relationships. One way they accomplish this is through the "My Catalog" section, where customers can enter questions about size and what they like to shop for, and a personalized catalog pops up. Boo.com is an innovative e-tailer of hip, cool fashion goods to the 20-something crowd which launched last year in 18 countries and 10 languages. The site is technologically advanced with 3-D spin and zoom options for viewing products. President Jay Herratti explains that this method puts the shopper in control of the shopping experience on the Internet. They can see stitches and the logos on the items being viewed. The site also has a virtual mannequin that customers can use to mix and match outfits and a virtual personal shopper, Miss Boo--an interactive cyber-figure who stands on the side of the site and offers advice and comments on the goods customers are looking at. Many feel these personal, technologically advanced extras are the future of e-commerce. OPTICAL E-TAILING There are also many independents up and selling on the Web. And some are quite successful. For example, Total Eyecare in Hopatcong, N.J. is reportedly doing $15,000 a week in sales through its Web site. Still, large chains such as LensCrafters and Pearle remain on the sidelines in this fast-moving economy, even while many have agreed that items such as plano sunwear, accessories, and replacement contact lenses are perfect candidates for Web sales. Suppliers, too, cringe at the mention of e-commerce for themselves. So for now our industry is standing still while major retailers in other product categories are falling over themselves to set up shop on the Internet. We know that the Internet will continue to expand its reach and e-commerce will grow in leaps and bounds. And experts say that the proliferation of broadband connections will take the Internet far beyond anything it is today. The technology we have today will seem infantile in the future. INTERACTIVE SERVICES For example, Nordstrom executives say that in the near future consumers will be able to surf through the entire Nordstrom inventory as well as the inventory of all its vendors and manufacturers. Already, Macys.com and Liz Claiborne share a joint Internet site, which takes a lot of cost out of the supply chain. Before, someone had to call and ask, "Where's my shipment? What's the status of these SKUs? What's the inventory in that store? Where's my check?" With their Internet connection, all of that information is easily accessible. Changes like these will certainly affect our industry as well.
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Article
What's New on the Internet? Virtually Everything
Eyecare Business
April 1, 2000