Senior business figures, including Sir Martin Sorrell warn web is now critical to retail and brand success
Senior business figures, including Sir Martin Sorrell warn web is now critical to retail and brand success
Senior business figures Sir Martin Sorrell and Sir Tom Hunter are among those in British business warning retailers to raise their game when it comes to e-commerce.
Among the issues raised by an independent report published this week, was an apparent lack of willingness among chief executives to own e-commerce, denying it the strongest possible voice around the boardroom table.
A survey of 100 UK e-commerce directors, conducted by independent research house Coleman Parkes and commissioned by e-commerce specialist eCommera, found only 30% of retailers' e-commerce operations report in to the chief executive. The research suggested this reporting line is critical: of those e-commerce operations reporting growth during 2010, 61% reported into the chief executive or the board, while lower performing operations reported into the chief marketing officer or chief information officer.
Top rank attention
Sir Tom Hunter, West Coast Capital chief executive, said: "CEOs [chief executive officers] need to take their online sales channel just as seriously as their offline one. Just because they can't actually walk through an online store doesn't mean e-commerce isn't the future of their business. Sadly, I suspect many CEOs believe they don’t, can’t and shouldn’t have to ‘get’ the web, but this is very much the mainstream now and vital to the success of the business.
"The future of retail is undeniably multichannel – clicks and mortar – and the next real win will be for those that can use the competitive advantage of bricks to combine with the clicks to offer seamless customer service."
Sir Martin Sorrell, WPP chief executive, said: "The most successful retailers of the future will be those who understand profoundly both the physical and virtual channels, yet what we're still seeing is a culture, at the very top of some businesses, where CEOs are failing to understand the web and the opportunities it presents. Ten years ago, perhaps this could be forgiven, but not now."
Limiting business potential
In more than a quarter (27%) of retailers, e-commerce reported into a line of business, such as finance, marketing or technology.
Andrew McGregor, eCommera chief executive, said: "The past couple of years have been tough for all retailers. Nobody has had it easy but those fairing best are the companies who are running their ecommerce operations most effectively and taking them most seriously. That means giving e-commerce a seat at the top table.
"The challenges of online are very different to traditional retail but CEOs must understand the web and the unique data their ecommerce operation creates and what it tells them about the ways in which they must refocus and refine their business."
