Opinion article

Integrating traditional commerce in the global market

The small business, street trade or traditional trade was strongly shaken in its turnover and the ability to retain customers, with the opening and proliferation of new forms of marketing, called modern distribution and large shopping centres, which began a process expansion in the mid-90s of last century.

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NKA ONLINE BUSINESS MODELS | THE EXCELLENCE IN JOINT PROJECTS

Framework
Major national and even global objective is to encourage and enlist SMEs to enter this world of digital economy which is expected that within 10 years has a global share of over 50%.
The agenda for trade competitiveness has measures designed for the development of online trade. The goal is that by 2020 35% of companies with over 10 employees receive orders via the Internet (currently 21%)
Between April and June 2013, 3.48 million citizens living on the continent have accessed ecommerce sites. In the fourth quarter of 2010 the registered value was 2.59 million. - Study of Netpanel from Marketest.
The B2B and B2C purchases have already reached 36.7 billion euros (24% of GDP), and should grow up to 69 billion in 2017 (43% of GDP); - ACEPI

Major obstacles that SMEs (individually) face:

  • Insufficient financial resources for the new "point of sale" in terms of management model, logistics, content production, digital marketing…
  • Lack of 'culture', organization and professionalism in this new sales model, which has very specific issues for its success and its essence very different of the selling model "face to face" (well-defined target markets, high levels of service, logistics ...)

Joint projects "versus" individual projects

Some examples such as Virtual Shopping Centres, Virtual Cities, etc., tried to get around those difficulties, adding several companies in the same project.

This management however (physical and virtual), by not be based on properly prepared platforms and business models with well-defined rules have often failed (will be easy to see why ... .several "shopping carts" ..., purchases made without physical stock, no standardization of procedures, Logistics, Digital Marketing…)

THE BUSINESS MODEL

For the promoter is essential to successful implementation of a project of this kind, such as:

  • Financing model
  • New concept for associates canvassing
  • Offering another type of services of value, in a new associative concept

In the proposed model, the investor will assume the business management, working like a trading company, with sales exclusively online, on following components:

  • Image
  • Marketing
  • Content Production
  • Management of social networks
  • Billing
  • Logistics
  • Customer service
  • Claims
  • ...

 

Revenues are originating from:

  • Sales from "STOREONLINE"
  • Marketing, communication and training services

The Solution

  • “Store Online” will sell the products and services of stores participating in the project, using the same contents of the websites of participating stores (This ensures the maintenance of products and content in all sites of participating stores).
  • The orders placed directly on the websites of participating stores will be handled individually.
  • The participating stores must have this platform for online shop.
  • The platform of the participating stores is the same as the "Store Online”.
  • The participating stores will be integrated with the respective management software.
  • The online stores and the "Store Online" will have a common accommodation.


 

Components

  • Institutional Portal
  • Marketplace
  • Integration ERP
  • Integration of online stores (participating stores)

In terms of technology the products involved in a solution of this kind should have specific characteristics in order to obtain the maximum optimization and efficiency (global website is the same as the site of the "store" shopping cart at the global site is the same, regardless of the "store" ...), the model and business concept involved is crucial in the success of a project like this and involves Management, Marketing, Content Production and Logistics components. 
 

   

 

 


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