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eRetail Association Newsletter
March 9th 2001
from Nigel Fenwick, President, eRetail Association

Welcome to the March e-newsletter from the International eRetail Association & eRetailNews.

In this month's newsletter:

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MARCH MADNESS - SAVE, SAVE, SAVE!
If you haven't already signed up for our free newsletter, you are missing out. Sign-up now and learn about our subscription savings offer. 
FEATURE STORY
The online retailing world is looking more and more like an episode of "Survivor"
Press stories of dotcom failures abound. It is tough to pick up a newspaper these days without reading about the latest in a string of dotcom failures. Does this mean that pure-play online retailing (or etailing) is dead? Unlikely. What it means is that market realities have set in and etailers must reconsider their strategies for survival and growth. In a remarkable parallel to the hit TV show, Survivor, alliances are likely to play a big factor in determining who goes and who stays. There is no doubt etailers have had a tough time over the past six months. 2000 saw a number of major brick and mortar retailers getting their online act together and beginning to compete effectively with pure-play companies.

The dominance of traditional retailers in the online world is after all, hardly surprising; traditional retailers have a number of advantages over their etailing cousins:

Brand recognition Merchandising expertise Physical presence Established infrastructure Established vendor relationships The ability to provide in-store services (e.g. pickups and returns) Meanwhile, many etailers have seen much of their initial advantage eroded as they have struggled to implement advanced distribution facilities that were never envisaged in those early business plans. Compounding this problem were unrealistic expectations of market penetration, which failed to take into account the noise in the market caused by so many competitors. Although some etailers still have the advantage of a broader assortment, they are often no longer able to offer a price advantage over their click and mortar rivals.

One of the biggest problems for etailers has been their inability to create recognizable brand identities. Without a strong brand, it is difficult for shoppers to personally identify with a particular store. The result - brand switching on a massive scale.

For etailers, the most crucial question is: What is our survival strategy? Read more online.

RetailTekWeb.com offer
Have you seen the new online retail technology directory? RetailTekWeb.com is a great place to find information on leading retail technologies.

If you have a product you would like to list in the directory, you can get 10% off your listing fee during March by using the following discount code: "NL10"

http://www.retailtekweb.com 

RetailTekWeb directory of retail technology

NEWS SNIPPETS
BroadVision Powers Pitney Bowes Integrated Web Portal

Ritzcamera.Com Becomes The Premier E-Commerce Provider For Shutterport.Com 

MessageMedia Partners with Veripost to Offer E-mail Change of Address Services

Kewill's Enterprise-based Technology To be Used in FedEx's Ship Manager Solutions

Overton's selects ecometry to power its multi-channel retail operation

Tomax and Oracle Deliver Web-based Solution for Retailers 

Commission Junction revises its merchant agreement for affiliate management

Kewill Systems has added same-day shipping service compliance functionality to its Kewill.Net solutions

RetailExchange.com will be providing online escrow services through Pitney Bowes. http://

PlanetRx is referring customers to drugstore.com after announcing it will close its virtual doors. 

REI's online business reported sales of $92 million in 2000. 

GroceryStreet.com attempts to define an online grocery business with a difference. 

NetRadio offers digital downloads of music, DVD and VHS movies, video games, as well as music CDs and cassettes. 

CyberRebate.com is extending its online shopping discounts to wireless customers. 

Albertson's joins the Meals.com network, offering customers a range of Meals.com services. 

Ashford.com will acquire the online watch retailer Watchnetwork.com. The acquisition is expected to expand Ashford.com's direct relationships with leading watch brands. 

AddSomeSpice.com officially launched its new lingerie, intimate apparel and novelty store. 

The NPD Group, Inc. has launched a new Internet initiative making marketing information available to business decision-makers via the Web. 

PartsAmerica.com is partnering with traditional retailers to offer local offline pickup and returns. 

SmarterKids.com has unveiled its enhanced "My Kid's Store," a personalized store that was created based on the individual education needs of a specific child. 

digiMine services are being used by Nordstrom.com to enhance the online shopping experience. 

Using Preview Systems Inc.'s electronic software distribution platform, Amazon.com is now offering its customers software downloads. 

SonyStyle.com uses a new personalized recommendation service to guide shoppers to products that meet their needs. 

WinesPlus.com offers many of the 2,800 wineries nationwide an e-commerce solution for customers to order their products, while the wineries control the fulfillment. 

SmarterKids.com and Homeroom.com have created an alliance under which SmarterKids.com will provide Homeroom.com access to specific products aligned to Homeroom's specific database of skills. 

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PURE PLAY VS MULTI-CHANNEL PERSPECTIVES
The 2001-2 eRetail Report looks at Internet retailing from two perspectives. First, the CEO of drugstore.com considers the future of pure-play eRetailers and drugstore.com in particular. Secondly we look behind the scenes at phobo.com, the company that was created by Ritz Camera to develop its eRetail sites. As an experienced offline retailer, Ritz Camera encouraged phobo.com to build an eRetail architecture that leveraged Ritz's investment in legacy technology and provided an e-commerce environment to support multiple eRetail markets. Finally we examine a tool for merchandising in the world of outlet (off-price) retailing.

This report is now available online for $15 for a limited time. That's over 69% off the regular non-subscriber rate of $49.

eRETAIL CONFERENCE DISCOUNTS

eRetail Association members receive discounts to the following events:

Date

Location

Subject

Association
member discount

Mar 26-29th Chicago eTail Solutions World Forum 20%
May 21-22nd   Chicago Jupiter Retailing Forum  (Exhibitor discounts available)  20%
Aug 22-25th  Singapore DOTCOM ASIA
(Exhibitor discounts available)
30% 

(Don't miss my presentation at eTail Solutions on Mar 26th - "Hunters and Gatherers in an Online World")

CALL FOR SPEAKERS: DOTCOM ASIA would like to hear from potential speakers at this international conference and exhibition on e-commerce. If you are interested in speaking at the conference, please use this link for more information: http://www.eretailnews.com/conferences/speakers.htm

Become a Content Partner
If you would like to write an article to be published by eRetailNews on our website and/or in this newsletter, ask me about becoming a content partner. As a content partner you can achieve great visibility for your business. Drop me an email to find out more.

If you enjoyed reading this newsletter, please forward it to a friend.

Be happy,

Nigel Fenwick :)
International eRetail Association
 http://www.eretailassociation.org
 http://www.eretailnews.com 

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