Well, if you haven’t realized it by now, and yes, we are living and doing business in the New Economy.
What is this New Economy?
The “New Economy” is the same as the “Internet Economy”, or the “Digital Economy”. Surely you are on the right road – it is about the Internet…
The Internet has moved us from the “Old Economy” to the “New Economy”.
What are we doing differently in the “New Economy”?
| Doing things in the ‘Old economy’
|| How things work in the ‘New economy’
| Doing local business
|| Doing business anywhere
| Waiting for customers to visit your shop
|| Customers go online and click on your website link
| Shopping hours 9 am to 9 pm
|| Customers shop 24/7
| Pay rent and salaries
|| Pay web hosting and data
| Shop owner carries stock
|| Manufacturer carries the stock
| High prices because of high costs
|| Lower prices because of low costs and risk
| Little information available about products
|| Products are described in detail on retail websites
| Difficult to compare product and service prices
|| Product and service prices can be compared instantly
| Limited variety in product lines
|| Large range of products and brands available
| Reach thousands of people with advertising
|| Access millions of people through social networks
The “New Economy” is about knowledge and new ideas.
Knowledge and new ideas are crucial for a business to grow and survive in the “New Economy”. Therefore, the more you know and the more creative the ideas your business can generate, the better chance it will stand in the fast changing environment of the “New Economy”.
The “New Economy” is about networking
In this economy digitization enabled that we can be in touch with whomever we want, twenty four hours a day. As result, social networks such as Facebook and Linked have transposed our daily lives. And Twitter telling us in real time of an event anywhere…
Uncertainties of the “New Economy”
The validity of electronic contracts, the protection of personal details and data, and secure online payment methods are a concern for many people.
Visit eBizplan for business- and marketing consulting.
Customer see and feel a product
As Brick and Mortar retailers close their shops, big online business moves in.
Google considers leasing Brick and Mortar shops
Wow, what is going on? Brick and mortar retailers seemingly can’t survive without also selling online. If it is so bad in the shopping mall, why is Google, according to TheAge considering to open shops there?
Is this backwards migration of Google the start of the revival of physical shopping?
Most of the retail business is still done at physical retail shops in urban shopping centres and online-only shops begin to realize the value of physical shops.
TheAge reports that Google wants the shops to show off their Android products using physical shops in high traffic shopping centres. Maybe Google reacts to what their customers want?
What Brick and Mortar as well as online retail customers want?
There is consensus that multichannel marketing is the way to go for Brick and Mortar retail business as well as online only retailers.
Customers of Brick and Mortar retailers want to enjoy the savings and convenience that online retailers offer. Online customers, on the other hand, may also want to feel and fit or test before they make a decision to buy online.
Thus for both Brick and Mortar and online retailers the addition of an extra marketing channel will help them to survive and grow. The Brick and Mortar retailer by establishing an ecommerce website; and the online retailer by having stores that act as billboards for their brands.
Government begins to interfere with online business to negate the ill effect it has on Brick and Mortar shops. Is it fair that they receive government protection?
Are there new laws coming to protect Brick and Mortar shops?
The success of online retail businesses has caused the decline of sales of previously vibrant retail shops.
The Opinion Shop reported yesterday that the US government is looking at ways to help retailers to compete with Internet retailers. It didn’t take long for the government to poke their noses into the new economy. They are considering introducing online taxes, and will collect it from the online buyer.
I wonder what influence big business might have on this reaction from government.
Why do Brick and Mortar shops need government protection?
A Brick and mortar retailer just can’t compete with the convenience that their online counterparts offer.
Well-known retail businesses regularly goes under administration and thousands of people lose their jobs. At the end of the day, government must care for them.
You just have to look at the vacant retail space in shopping malls and city centers to realize the effect that online retail has on well-known Brick and Mortar brands. Empty shops are not maintained and are a sore eye for a city.
The big retail brands had no other choice to do their business also online. Bricks and Clicks retailers use part their shops to display their online product and the rest of the space as a warehouse.
What will the future of online retailers be from now on?
I think that once government gets involved with online business, it is going to string too many red tapes, perhaps making the easy entry to online business that we now enjoy, much more difficult.
Online business is however global and seamless making it very difficult for a single government to control.