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Harvey Norman FAIL!

Discussion in 'General Chat' started by James, Mar 30, 2011.

  1. James

    James Membership: VIP

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    How is this quote from Harvey Norman -

    "Harvey Norman has been the pace-setter for an awful long time," Mr Harvey said. "They're kicking us on the internet at the moment but there's no history of anyone making money on it.
     
  2. FirstPageResults

    FirstPageResults Membership: VIP

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    lol classic.

    A former Harvey Norman employee started up appliancesonline.com.au because they so backwards online.
     
  3. Shane

    Shane Membership: VIP

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    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.
     
  4. Timmy

    Timmy Banned

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    Pretty sure Catchoftheday turns over more than $100m a year...
     
  5. snoopy

    snoopy Membership: VIP

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    I would say the level of online shopping is probably too small for any individual to have made $100m+ in Australia from an online retail business. Then again when people do he'll have likely missed the boat.
     
  6. James

    James Membership: VIP

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    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...
     
  7. Honan

    Honan Membership: VIP

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  8. Timmy

    Timmy Banned

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  9. Timmy

    Timmy Banned

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  10. Chris.C

    Chris.C Membership: VIP

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    I hear Amazon do OK...

    :D

    Oh poor Gerry - he just doesn't get it.
     
  11. Shane

    Shane Membership: VIP

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    And I'm pretty sure you know the difference between turnover and personal wealth. :)
     
  12. Timmy

    Timmy Banned

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    haha I'm hearing ya one. At the end of the day, his statement was calculated and intentionally fairly ambiguous and it achieved the desired result.

    What Gerry does and doesn't do has very little bearing on what most of us do, yet we've all had a chop today LOL.

    T
     
  13. payattention

    payattention Archived Member

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    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.
     
  14. James

    James Membership: VIP

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    This is a good point i will agree, Gerry does really pull in the mum and dad buyers...
     
  15. Luke

    Luke Membership: Community

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    He's just pissed because the days of importing something shitty from china for a couple of hundred bucks and reselling it for 5 x the price are over - oh wait no they aren't? Not yet anyway...
     
  16. FirstPageResults

    FirstPageResults Membership: VIP

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    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
     
    Last edited: Apr 3, 2011
  17. Chris Bates

    Chris Bates Membership: Community

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    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 :D
     
  18. James

    James Membership: VIP

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    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...
     
  19. Chris Bates

    Chris Bates Membership: Community

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    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.
     
  20. snoopy

    snoopy Membership: VIP

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    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.