E-commerce - Cape Peninsula University of Technology
E-commerce - Cape Peninsula University of Technology
E-commerce - Cape Peninsula University of Technology
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with credit card/debit card/cheque and we know what that person has bought<br />
because we can link the card with the items bought. Like ifyou come<br />
into our shop and say here's my credit card, we can prepare the<br />
shopping list for this customer. One our newest added services is the Go<br />
Banking. Apart from that, it's not much but we have big plans to start<br />
<strong>of</strong>fering services you find in our traditional shops like in incorporating<br />
third party payments - SABC TV license, payment <strong>of</strong>electricity, airtime<br />
etc that you can do in our traditional shops and that wilf obviouslyit wilf<br />
give us a strategic advantage.<br />
Q: WHAT ACTUALLY LED TO PICK 'N' PAY'S DECISION TO GO INTO E<br />
RETAILING?<br />
A: Essentially I will say it is a strategic move because we are proud to be<br />
known as one <strong>of</strong> the leading e-retailers in the country. Being on the lead<br />
comes from our technology and also from our stores plus all sorts <strong>of</strong> reasons.<br />
We <strong>of</strong>fer a whole menu <strong>of</strong> services if you come into our stores many things<br />
that we do that you can't do with our competition. We therefore see this as<br />
an additional service which we <strong>of</strong>fer to compliment all the rest <strong>of</strong> the<br />
services and keep us in the lead.<br />
Q: DOES ALL YOUR SUPER MARKETS OFFER E-RETAlL SERVICES OR<br />
DO YOU HAVE CERTAIN SUPER MARKETS AND STORES THAT DOES<br />
THAT?<br />
A: Our module is such that we identify key stores in key areas that we put out<br />
there in order to follow our customer orders. In the Gauteng region we have<br />
four stores that we use. Also in the Pretoria area there are about six stores,<br />
two in <strong>Cape</strong> Town and one in the Durban areas. It depends on the density,<br />
region and the reqUirements <strong>of</strong> the customers.<br />
Q: COULD YOU EXPAND ON THE IMPACT OF INTRODUCING E-RETAlLlNG<br />
IN YOUR COMPANY?<br />
A: It is not a great pr<strong>of</strong>it to be honest; it costs a lot <strong>of</strong> money to run so it really<br />
becomes prospective strategic decisions. There are very few modules in the<br />
world where people are making money from a retailer doing e-retailing<br />
businesses. Standalone retailing has almost disappeared internationally<br />
because people who started can't make it. The difficulty comes around<br />
physical delivery. Any physical buying <strong>of</strong> goods on the Internet requires<br />
delivery and it requires a lot <strong>of</strong> cost to such. Thafs why people who are<br />
leading in Internet retailing are people that deal in goods such as books,<br />
records, flowers, things that does not require much delivery. They make<br />
use <strong>of</strong> other peoples delivery mechanisms. Any physical shopping <strong>of</strong> goods<br />
using the Internet requires delivery and in the case <strong>of</strong> large bulky products<br />
they are very expensive.<br />
Also the cost <strong>of</strong> fulfilling orders is very high and also Internet shopping<br />
has become something that you have to adopt and execute which also is<br />
very complex. It has impacted our business activities because it is very real<br />
and we have to implement processes in those stores and make sure it works.
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