Harvey Norman FAIL!
- Thread starter James
- Start date
FirstPageResults
Top Contributor
lol classic.
A former Harvey Norman employee started up appliancesonline.com.au because they so backwards online.
A former Harvey Norman employee started up appliancesonline.com.au because they so backwards online.
Shane
Top Contributor
But when Gerry Harvey talks about making money, he's not talking about a few million, he's talking hundreds of millions. I think his point is that no one in Australia has become seriously wealthy ($100m+) from online retailing.
James
Top Contributor
Isn't that Deals Direct crowd making like 50-100million range now?
Seek.com.au making millions?? (sure it not e-commerce)
deals website 50 million range (sure not e-commerce but close)
Not saying Gerry is a bad business man, I just think he has missed the boat with online....Why doesnt he just join it in a big way instead of acting like a fool... I mean it was only 2 years ago when he was talking smack about TV/radio and billboards killing online advertising...He now spends millions on online adverting...
Honan
Top Contributor
http://www.heraldsun.com.au/business/harvey-to-open-online-store/story-e6frfh4f-1226030362820#
Gerry says he is going to open an online store
This guy is a genius at getting free publicity
Gerry says he is going to open an online store
This guy is a genius at getting free publicity
+1. Doesn't matter why they're talking - just get them talking. Agree GH is king at free press.
I'm pretty sure people are making money online.... lol
http://aca.ninemsn.com.au/money/8230678/group-buy-electronics
Over 10,000 orders everyday...
http://aca.ninemsn.com.au/money/8230678/group-buy-electronics
Over 10,000 orders everyday...
Shane
Top Contributor
payattention
Archived Member
As much as I dislike Harvey Norman, I really hope their online venture succeeds because everyone will benefit. It'll open the door to people like my parents who refuse to shop online because they don't feel it's safe and they don't know companies like Kogan.
They know and trust HN and might be willing to browse their online store and purchase a few items. Once they do that, it'll get em hooked and they'll be buying all sorts of stuff from other online businesses. Next thing you know, they're booking holidays and applying for credit cards online... and spending my inheritance.
They know and trust HN and might be willing to browse their online store and purchase a few items. Once they do that, it'll get em hooked and they'll be buying all sorts of stuff from other online businesses. Next thing you know, they're booking holidays and applying for credit cards online... and spending my inheritance.
James
Top Contributor
This is a good point i will agree, Gerry does really pull in the mum and dad buyers...
FirstPageResults
Top Contributor
I have provided web dev and consulting for a few major retailers and they seem to have alot of the same issues holding them back from going online.
Namely pricing, distribution and wholesale politics... but also many of the old school retail kings know bricks and mortar so well that when they spend hundreds of thousands opening a new store the returns are fairly confidently projected, whilst online is foreign too them. I pushed most of them to invest only a fraction of those figures into ecommerce and whilst the marketing departments jumped at the chance, top level management quashed it time and time again.
I agree good to see a few major retailer making the move
Namely pricing, distribution and wholesale politics... but also many of the old school retail kings know bricks and mortar so well that when they spend hundreds of thousands opening a new store the returns are fairly confidently projected, whilst online is foreign too them. I pushed most of them to invest only a fraction of those figures into ecommerce and whilst the marketing departments jumped at the chance, top level management quashed it time and time again.
I agree good to see a few major retailer making the move
Last edited:
Chris Bates
Member
Personally I think online retailing doesn't go too well for bricks and mortar businesses because they do it wrong.
Take online grocery shopping for example - whilst it is taking off now, it still needs a major overhaul. Retailers think that the consumer should pay for the privilege of shopping online, so prices are more expensive than in store.
If you take out overheads of having a showroom floor and all the overheads that run it (sales staff, cleaning, equipment, utilities, etc) - why is it that we're paying more for 1 staff member to list the item on the website?
If GH took this into account, used his buying power and adjusted his margins - he'd be unbeatable online.
But none-the-less, GH is still a moron
Take online grocery shopping for example - whilst it is taking off now, it still needs a major overhaul. Retailers think that the consumer should pay for the privilege of shopping online, so prices are more expensive than in store.
If you take out overheads of having a showroom floor and all the overheads that run it (sales staff, cleaning, equipment, utilities, etc) - why is it that we're paying more for 1 staff member to list the item on the website?
If GH took this into account, used his buying power and adjusted his margins - he'd be unbeatable online.
But none-the-less, GH is still a moron
James
Top Contributor
Personally I think online retailing doesn't go too well for bricks and mortar businesses because they do it wrong.
Take online grocery shopping for example - whilst it is taking off now, it still needs a major overhaul. Retailers think that the consumer should pay for the privilege of shopping online, so prices are more expensive than in store.
If you take out overheads of having a showroom floor and all the overheads that run it (sales staff, cleaning, equipment, utilities, etc) - why is it that we're paying more for 1 staff member to list the item on the website?
If GH took this into account, used his buying power and adjusted his margins - he'd be unbeatable online.
But none-the-less, GH is still a moron
It takes a lot more to run a huge website then just having 1 staff member to list items. especially a decent sized E-commerce store.
You need some one to manage the PPC/SEO, you need some one to Manage all the social efforts, you need a developer, you need some one to do copy writing their are then many more levels.
Look at Appliances Online they have a bunch of people doing these roles...
Chris Bates
Member
Hahaha obviously a bit of an understatement 
The point still stands that overheads online should (would) be lower than a bricks-and-mortar showroom. Especially considering that I'd imagine that a retailer the size of HN would likely already have resources of a graphic designer, copywriter, and webbie.
PPC/SEO/Social/et al are part of a marketing budget, of which encompasses showroom sales as well.
Keep in mind I'm specifically talking about bricks and mortar retailers coming online - they go about it lazily. GH isn't going to revolutionize anything here, will just be another overpriced online retailer.
The point still stands that overheads online should (would) be lower than a bricks-and-mortar showroom. Especially considering that I'd imagine that a retailer the size of HN would likely already have resources of a graphic designer, copywriter, and webbie.
PPC/SEO/Social/et al are part of a marketing budget, of which encompasses showroom sales as well.
Keep in mind I'm specifically talking about bricks and mortar retailers coming online - they go about it lazily. GH isn't going to revolutionize anything here, will just be another overpriced online retailer.
snoopy
Top Contributor
With something like that it is going to be a very difficult model to get working well because it is a whole lot of low priced and often bulky items, plus the need for refrigerated delivery. Personally I doubt online grocery shopping will ever be mainstream, it is something mostly suited to special situations like the old, disabled, businesses ordering certain items in bulk etc.
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