Time is running out
King: supply side has a par t to play
E-commerce has just passed its 10th anniversary, says Leighton King, marketing manager of Mailspeed Marine.
Whether manufacturer, supplier, distributor, retailer, all of the above or simply as a customer, we have all been affected by this additional route to market bursting onto the scene and while we may have been afforded a bit more time than most industries in deciding whether to engage, resist, or just pretend it never really happened, the recent broadband explosion is forcing our industry to wake up to ecommerce.
The marine industry is surrounded by similar leisure industries which have found ecommerce to be a powerful mechanism in supporting the established network of manufacturers, distributors and retailers, while still preserving the natural opportunity ecommerce should present to the young, keen entrepreneur with technology and know how on their side.
Perhaps most important of all is that the best interests of the customer have been at the heart of the developments towards an endorsed, competitive, inclusive and structured retail internet marketplace for the products and services provided to those who choose to fill their leisure time via such vendors.
However, such a model is desperately unrepresentative of the current state of the leisure marine industry and unless this issue wins the attention of those best suited to make a difference we ALL risk losing the hugely valuable, traditional routes to market which have built and shaped our retail sector into the attractive, customer focused, and successful marketplace it has become.
At Mailspeed Marine we are enormously proud of each and every facet of our business. As we approach our 25th anniversary we have proudly sought modest growth each and every year which has allowed for continual measured investment into each of our three stores and warehouse, multiple boat show stands, mail order department, 320 page catalogue, website, and all of the staffing implications which go hand in hand.
Only a measured and innovative response to an increasingly demanding customer has afforded such investment, and over recent years much of this has been focused on the e-commerce revolution.
Never pushed Whilst we have never tried to push a customer toward shopping with us through any preferred avenue, we always accommodate the demands our customers place upon us and, as with every major retailer in most industries, this has undoubtedly caused us to focus much of our effort on improving our presence online.
However, it would appear that we are about to meet our greatest challenge and time is running out before we shall be faced with a decision.
Faced with huge pressures of market forces on the customer facing side of our business we are evolving and innovating. However, on the supply side of our business such an evolution is far from being emulated.
Manufacturers and suppliers still operate trading terms and conditions from decades ago when retail was far less diverse than it is today.
Most accounts offered very little difference from the traditional chandlery model, which required premises, staff, stock, and after sales care as essential ingredients to become a successful chandler.
Even before the advent of ecommerce, mail order chandlery was still emulating the traditional model of the chandlery account with regards to the commitment it made to a brand, or supplier with regard to staffing, stocking, marketing, and after sales care.
However, such a model is no longer reflective of the whole market, as the opportunity which e-commerce offers is inviting new entrepreneurs into the market at an increasing rate.
The reluctance to alter trading terms and implement mechanisms which recognise such wild differences between retail accounts which engage in such different routes to market is manifesting itself in wildly varying market prices for products.
Huge variations The customer, who should be central to the structure of the market, is seeing such huge variations in pricing because Internet only traders, not so pressured to invest in their business in the same way, can afford to transact with far lesser margins, particularly on high ticket items.
While these new traders continue to enjoy similar trade price lists as those accounts which emulate a more traditional and expensive chandlery model, the end result is an obvious one, and one which is leaving the traditional chandler huge difficulties when being compared simply on price by prospective new customers or appeasing those loyal customers who may have always been happy with the service but may just begin to question such an increasing price disparity.
So?. . where does that leave us? Retailers will be forced to compete or die and while great service will sell, if retailers are to continue to support brands and suppliers in the future by preserving the traditional routes to market, and all the service and support benefits which are associated with doing so, then the supply side of the industry must recognise that it has its part to play.
No doubt there is much we can learn from other industries and from a better understanding of the requirements of each member of the long chain which is involved prior to the customer acquiring his or her shiny new widget. After all it's the customer who we're all trying to serve, as he/she is the ultimate paymaster.
If we can begin by agreeing that the customer is best served by a leisure industry, rich in all its attractive traditional values whilst constantly striving to embrace innovation and technology, then that may be the best starting point.
All we need do then is convince ourselves and our businesses of the role we must play in order to best serve that end.
