Monthly Archives: August 2008

Online Retail

The NZ Herald ran an article this week about the The Warehouse’s new online site (I would include a link to the site, but it’s not actually live yet).

I was interested in the list of online retailers that was included at the bottom:

All four are traditional retailers.  While all four sites are okay, none of them really feel like online natives – for reasons I can’t explain all include banner like advertising (promoting their own sales and the like), and all prominently include a “Locate a store” feature.

I doubt that online sales are contribute significantly to the bottom line of any of them (if I’m wrong about that I’m happy to be corrected).

If you didn’t click the link, here are some quotes from retail analyst Tim Morris, of Coriolis Research from the article:

“Internet retailing in New Zealand is behind where it is in other countries, and that’s got nothing to do, I think, with the innate willingness of New Zealanders to buy things online. I think where it falls over is in the execution.”

“There’s really not a lot of good models in New Zealand for New Zealand-based companies doing everything right, especially as you get closer and closer to moving real things, not just nominal things like airline tickets.”

He’s right about Air New Zealand.  They kick ass, with a top-ten site.  While none of the four sites listed above are listed in Neilsen’s ratings.

But what about the pure online retailers?  We have them in NZ too, right?

I’m much more likely to buy from Ascent (Computer hardware and software), Fishpond (Books, DVDs and Music) or Mr. Vintage (T-shirts etc) than any of those stores listed above,

My guess is that there are some really successful small/medium business selling new stuff online, not the least because they don’t have to pay high street rents, but the reporter from the Herald probably hasn’t heard of any of them.

So, let’s make a list.  Where do you love shopping for new goods online?  I’m looking for New Zealand based retailers only.  Add your suggestions in the comments below or flick me an email and if I get enough responses I’ll publish a list of the best ones in a future post (if you post about your own business I’d appreciate it if you could identify yourself as the owner etc).

Disclaimer: I am indirectly a shareholder in Fishpond.

Self Portrait As Muppet

We went along to the gala night at the Affordable Art Show in Wellington last night.

This is the second year I’ve been, and I think it’s a cool concept: it costs $10 to get in, and all of the art displayed is for sale at prices between $50 and $5000.  As one piece is sold it is immediately replaced on the wall by another, so the selection is constantly changing (I’d love to know how many times they turnover the entire wall space over the course of the weekend – I’m guessing it’s a lot!)

I expect most people who go along find something that grabs their interest if not their wallet.  We left our bank manager trying to decide if this is the right piece for his (as yet unborn) child’s bedroom wall.

I hope he went for it!

Self Portrait As Muppet

Self Portrait As Muppet

(I don’t remember the name of the artist, and I hope he/she doesn’t mind me posting this photo – if you recognise it please let me know and I’ll update this post)

If you’re looking for something to do on a wet weekend, I recommend it.

UPDATE: The artist is Adrienne Body.  Here is a hi-res image of this painting from her site.  Love it! :-)

True Fans

According to Kevin Kelly to be successful an artist needs to find just 1000 true fans.  He defines a true fan as somebody who will buy anything and everything you produce.  The assumption is that each of people will spend $100 per annum on average and that $100,000 (less expenses) is enough for somebody to live on.

I was reminded of this when John from Ponoko posted this video of one of their customers:

That’s a true fan.  999 more to go!

But, is that enough?

I’m sure that this guy is not the only person who loves what Ponoko is doing.  So, if 1000 is the target then it’s fewer than that.

The actual number of true fans required for a business like Ponoko to be viable depends on:

  • How much they can convince each true fan to spend
  • How much it costs them to run the business to support those fans

I don’t know all of those details for Ponoko (and those I do know are not for me to divulge here), so I’ll leave the example there.

But, the point is the maths is not complicated.

How many true fans do you need?  Is that number achievable?

Once you understand the impact of these two variables it will focus your attention on the things you can do to improve each of them.

How can you increase the average amount that each true fan spends?

And, how can you eliminate costs that do not contribute to supporting true fans? (see #10 from the “Margin Manifesto” list by Tim Ferris)