Online Retailing: "howz that"

Mr.A : How important is search in driving customers to websites?
Mr B:  A search strategy should be integral to a multi-channel approach and some of the big retailers are benefiting from creating a seamless experience between on and offline channels.
Previously, search was seen as a separate marketing tool. Now I think most retailers understand that it is one of many tools that a retailer has at their disposal. But, it should be integrated well to ensure maximum benefit. Competition in the search engines is soaring as retailers vie for the top spot.

Mr.A:   Do you think the large brand retailers face a bigger threat from smaller retailers who now have a platform to compete on?
Mr B:   Everyone now sees the online channel as a must. If they don't provide their customers with the choice they are looking for, their competitors are a click away. Simple as that. But there is still consumer unease around going online and trading with smaller, unknown retailers.
A search for mainstream products such as lawnmowers, pushchairs and high definition TVs is very telling. The big brands you would expect to appear for such products are still not appearing. Instead, online only brands are stealing the show. The high street retailers can rely on brand equity to a large extent, but need to realise this isn't enough by any means. 

Mr.A:  How well have UK retailers embraced online retail compared to other European markets?
Mr. B:   Serious ecommerce figures on what's happening across Europe are thin on the ground, but the UK definitely leads the way. Closest in terms of penetration is Germany where uptake is steady, but the lack of available payment methods is slowing progress. I think we'll see a wider acceptance of different payment technologies across Europe but until then, UK consumers remain the most savvy and confident of European online shoppers. A trend that retailers here continue to encourage..

Mr. A: Best and worst online buy?
Mr.B:  Best buy has to be flowers for my wife (Interflora). Worst - not a single one (the secret is in the research).

Mr.A:  A retailer that has taken the online world by storm?
Mr B:  Amazon and Lastminute.com have a lot to answer for. They showed the world it could work. The likes of Argos and Comet, from a traditional background with lots brand equity, have really taken it to the masses.

Mr.A:  What are the main challenges that online retailers face over the next year?
Mr.B:   Greater competition as more big brands come into the picture. Dixons has just announced their withdrawal from the high street to go online. I think this is more of a brand exercise, but it is another high street brand competing for customers online. This shift in focus will continue to polarise the online retail industry further. Increased competition among the bigger players creates an increased challenge for the mid size retailers. There are many factors that drive customers to a high street store or website, but ultimately they need to look after the customer once there. Customer service is in the spotlight.