Tech notes
May 31 2007 By Herb Kim, The Journal
Back in 1994, Pizza Hut became one of the first companies in the world to begin selling its products online - encouraging visitors to "click the Hut" rather than "hit the Hut". A year later, the online shopping phenomenon really blasted off. Jeff Bezos launched Amazon.com and eBay was founded as Auction Web. Since then, we consumers have hardly looked back.
A report last week from Verdict Research revealed that last year saw the fastest rate of growth in online retail (e-retail or e-tail) since the dotcom bubble burst in 2001.
In the UK alone we spent £10.9bn online in 2006, a 33.4% jump on the previous year. It's an incredible growth curve, but should the industry be surprised by it?
I don't think so.
After all, shopping online is cheaper than shopping on the high street. It's more convenient. And when was the last time you were subjected to a moody 17-year-old shop assistant while shopping on the web?
While big names such as Amazon.com, Argos and Play.com currently dominate the top 50 e-tailers' ranking, the shift from traditional retail to modern e-tail has nevertheless benefited smaller, more specialist outfits enormously.
A few worth looking out for include:
Zazzle.com (lets you design your own products, from T-shirts to sculptures); ASOS.com (clothes that celebrities - and people from Big Brother - have been spotted wearing); Uncrate.com (recommends cool gadgets, clothes and hi-tech goods for men); and EthicalSuperstore.com (an excellent website, headquartered in Newcastle, selling ethical and Fairtrade products).
It's clear, then, that the present is rosy for e-tail. But what does the future hold?
All the signs suggest online sales will at least maintain their current growth rate for the next few years. Conservative estimates by Verdict predict they'll reach £28.1bn, or nearly 9% of total sales, by 2011.
That said, I don't think e-tail will replace high street shopping. E-tail therapy isn't quite as satisfying as retail therapy and there are certain items, such as clothing, it helps to try before you buy.
The more interesting question is: how will e-tailers' offerings develop?
Already there are sites using emerging web tools and technologies to give us a different shopping experience - one they hope will be more useful and enjoyable.
Two such websites are Threadless.com, which involves users in creating and rating T-shirt designs and slogans, and Like.com, which enables you to search for shoes and clothing you like based on their appearance. So if, for example, you like a certain visual aspect of a particular shoe you can look for shoes with similar attributes.
Today's e-tailers are beginning to serve up tasty dishes via the web, just as Pizza Hut started back in the mid-90s. And as the technologies develop, the most mouth-watering offerings are yet to come.
Herb Kim is CEO of Codeworks, the North-East's centre of digital excellence.
