The Rise of E-Tail

    LONDON, ENGLAND, February 15, 2012 /24-7PressRelease/ -- Consumers in the UK are spending more money online. The statistics reveal a substantial increase, with e-commerce sales jumping from GBP1.8bn in 2001 to GBP58.8bn by 2010. The predicted total of GBP81bn in online spending for 2011 is set to smash all previous figures.

What's caused the growth?

E-tail growth is a reflection of the changing consumer lifestyle, with people expecting a choice in how and where they shop for a product - whether that's on the high street, online or a combination of both. When it comes to these choices, revenue figures show that consumers are often favouring the e-tail option. To accommodate these expectations, traditional bricks and mortar retailers have no option but to include an online channel if they want to compete and remain a viable option. In an era where convenience is king, the retailers providing consumers with the products they want, when and how they want them, are those that are surviving.

"We see big opportunities in multichannel," says Nick Wharton, CEO of Dunelm. "We know that we have a customer group who wants to start and end their shopping online. It's naive to assume that there isn't a demographic doing this," he added.

Over the past ten years, the level of consumer confidence for e-commerce transactions has risen dramatically. Previously, shoppers would only purchase with trusted brands online, but now they're open to most e-tail sites. It appears there is reduced concern over security, with consumers reassured that any potential fraudulent activity can be handled by their card provider.
As well as changing consumer behaviour, property owners on the high street have been slow to react to economic changes - resulting in increased online activity. Property rental rates were set for retailers pre-recession and the continued high cost is driving businesses away as their leases come to an end. The recent announcement from Arcadia head, Sir Philip Green, of plans to shrink their high street portfolio by 250 stores is only the tip of the iceberg.

Technical developments and globalisation have also added to the recent e-tail boom. Technological advancements, such as mobile technology in particular, has become far cheaper, accessible and better understood than before. Consumers and retailers are embracing this technology when sourcing products globally, knowing that improvements in logistics will mean that they arrive quickly and securely.

Entrepreneurial opportunity

The opportunities presented by the shift in the retail market are attracting a new breed of entrepreneur. Given the increasing demand for shopping convenience, and a general disillusionment with the high street from both shoppers and retailers, there is an easier route to entry for start-ups looking to carve a niche in the new e-tail market. Upfront costs are comparatively relatively low, and once established, due to the nature of e-commerce (ease of communication, speedy identification with new businesses and products, shared recommendations etc.) success can come quickly.

Many of these new entrepreneurs are from a non-retail background; financial services professionals, strategy consultants, technology experts and 'whizz kids' from red brick universities who spend a couple of years post-graduation with established e-tailers and then start-up independently. These ventures are an interesting proposition development, as they bring together technical insight from experts from outside the industry, with traditional retail expertise.

Recruitment challenges

For both established retail businesses planning their diversification and for new start-ups, hiring and retaining the right talent is essential for future success. As market hasn't yet had the time to evolve to equip a sufficient number of candidates with a full e-tail track record, the challenge lies in finding individuals with the necessary expertise to fit seamlessly into these new e-commerce jobs.

There seems to be a lack of skills, with demand for candidates with a proven track record in an established, pure-play e-retailer being incredibly high. There will be several organisations always vying for those available on the open market, and proactive approaches made to those secure in their e-tail jobs. However, there are candidates available with the appropriate retail experience and entrepreneurial spirit to match, and who are quickly able to develop the full skill set required to make an immediate difference in a new e-tail role.

How a recruitment specialist can help

At Michael Page Buying & Merchandising, we understand that it can be difficult to identify, attract, hire and retain the 'perfect' e-commerce candidate. That's why we've developed close, consultative relationships with our e-tail start-up and traditional retail clients to ensure that they're able to secure talent that's right for their organisations, now and as they scale up and grow. From our experience, we're aware that it's not just about the technical skills and product exposure, but that the right cultural fit and network of contacts can really make your new hire a success. Additionally, we can:

- Help define goals and identify immediate needs: The e-tail market by its very nature is constantly evolving, so all the skills that a business needs might not exist simultaneously in one person. We investigate short, medium and long term organisational goals to determine the essential expertise required immediately, and provide suitable candidates who possess this, and have the potential to increase their remit when required in the future.

- Provide access to a vast range of skilled professionals: The right candidate for a role in the organisation may not come from a traditional buying or merchandising field, but have supply chain or marketing experience for example. As part of the Michael Page Group, we're able to combine our local knowledge, global experience and multi-disciplined approach to offer access to the right candidate for the job, regardless of job title or role function.

- Proactively network: We know that the best e-tail candidates are in short supply, and most are secure in well-rewarded jobs with great development prospects. We continuously identify and network with key players in the e-tail market to build long-term relationships to understand the right opportunities and organisations that they'd consider making a move for.

It's obvious that e-tail is booming, and with the predicted continued growth comes countless areas of opportunity for established and new organisations looking to develop into the space. However, the lack of appropriate skills available could potentially create barriers to success.

Website: http://www.michaelpage.co.uk

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