IMRG's Annual Senate Statement

E-retail is facing a year in which shopping online will becoming 'everyday'; merchants will get to optimise their existing e-commerce assets; and 'interactive media' will start to re-shape much of retail overall. This is according to the latest annual statement from the IMRG (the e-retail industry body) released earlier this week.

Formulated by the IMRG's Senate - its top tier of corporate members, including the likes of Argos, BT, Consignia, Debenhams, IKEA, John Lewis, Kingfisher and Microsoft - the statement is thought to outline and dictate the IMRG's own agenda for the coming year.

The analysis rests on the thinking that the e-retail industry will continue to grow ten times faster than mainstream retail. IMRG believes that there is no indication that any market sector is yet beginning to plateau. The organisation's research shows that e-retail will be worth a billion pounds per month in the UK by the end of 2002, and represent 4% of all retail sales at that point

At the same time, IMRG suggests that the Internet is fundamentally challenging the general retailing environment. This shift is largely sector specific, with some areas set to be more greatly affected than others, such as travel, books and cars. Other areas are unlikely to be affected at all, for example petrol and hairdressing. In addition, online research will influence a far larger proportion of retail sales than are actually transacted, especially in the case of 'information rich' products, such as holidays, cars and houses.

The statement also describes how e-commerce offers a wealth of opportunities, in both domestic and international markets, to merchants who recognise the value of their brand. In this way, those who thrive online will offer a product or service that is unique and/or highly suited to the channel; build an operation that is simple to understand and use, and is appropriate to the platform.

On the other hand, e-retailing is still fraught with challenges. The statement indicates that we are still at an early stage of the e-retail market's evolution, and many challenges remain. The IMRG prioritises payments as top of the action list for 2002, having been voted by 72% of IMRG Members polled as a matter requiring urgent attention. In more detail, 'chargebacks' associated with 'card not present' transactions remain the primary problem, as the current system seriously disadvantages merchants due to the imbalance of financial exposure. Other problem payment issues that are also undermining market development include fraud and inadequate cross-border services.

Challenges also lie in the field of 'consumer confidence', which last year was voted the top IMRG priority issue. It was again flagged by more than half of IMRG Members polled. Industry is doing what it can, by developing 'best practice', and facilitating the Internet Shopping Is Safe (ISIS) campaign. The IMRG concludes that greater commitment to resolving this issue is needed from both government and the payments industry.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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