Retailers fail to make Net gains [BB]

Retailers are in danger of falling behind on the information

superhighway as they miss out on opportunities to sell and support

customers via the Internet.

But FMCG manufacturers are using the Internet to their advantage, with

50% of the world’s leading consumer goods companies having an online

presence, according to the Datamonitor report ’FMCG on the Internet:

From Branding to Sales’.

The report suggests on-line retailing could grow by 150% to 200% a year

for the next five years, and although retailers know customer service is

a key differentiator, they have not understood how the Net can help

them.

Both loyalty schemes and the Web have the potential to capture customer

data but as yet only Tesco has responded with its on-line superstore,

claims the report.

Some manufacturers have invested significant amounts in on-line

advertising and 15% of spirits manufacturers are selling products via

the medium

This article was first published on Marketing