Luis Fonseca - Net Pocket

No doubt the Internet has brought a new impetus to the commercial, both in terms of business opportunities, such as the level of competition.

Until then, the ordinary consumer was limited to buying a product in the first shop that was going (eventually would check the price in one or two more stores and to compare prices) in the present scenario of the Internet, consumers have the possibility of seeking the lowest price for the product you want. Just for that, losing a few hours 'surfing', and all without leaving your home.

Moreover, the consumer now has the opportunity to research the characteristics of the product you buy, after comparing with other products in order to understand which product best suits your needs.

No doubt the Internet has brought a new stage in the relationship between the consumer and businesses. Therefore, we can profile the current consumer as a more informed consumer and no longer buy in the first shop where he goes.

On the flip side, the Portuguese reality tells us that we do not like buying online, it is a fact, but use the Internet to do market research, then go to the store we found cheaper to acquire the product you want.

This barrier to buying online is a question of generation, and certainly is a feeling that can only be changed with the coming generations. Probably our children will already be online shoppers. It's like we still have the ghost of the shell, but our children will remember that currency?

All these are unknowns that some companies do not consider their presence online, but nothing could be more wrong. The fact of not being online, makes not only not be seen, that they fail to know their products, as well, which are not included in the comparative price I mentioned earlier. For all purposes, to the Internet, are companies that do not exist

This situation will be much more complicated as more companies (European and American) bet on having distribution of its products to Portugal. These companies will also have a fairly large sales volume, and consequently obtain higher economies of scale that allow them to charge lower prices and certainly not exist without a market like ours.

As mentioned earlier, there is a barrier to online shopping in Portugal. But little by little, there will be available to consumers overcome that objection, provided the product is cheaper, of course. After all, what is the consumer who will say no to a saving of around 100 euros? And if all goes well which it will be the first store where you will move to acquire the next product? Sounds simple, right?

Gradually, are increasingly shopping online at European level (no longer speak of both the U.S., due to taxes that are needed to settle the case of an import outside the eurozone) who bet on its distribution in Portugal. Take the case of neighboring Spain, which has a more than 40 million consumers, distributed in Portugal, with 10 million, represents approximately 25% more market potential and cost of distribution plus very low.

If present, only some stores do with the evolving business and generations in the future, the purchase will be done only through the online, because companies will rely on the experience gained over the years that allow them to optimize itself so practice the lowest prices and have a very good level of service.

It is therefore essential that Portuguese companies agree on this issue for 10 years from now, do not appear on television to say that need subsidies because they can not compete with the prices of European companies entering our market, without giving a damn hypothesis of competition, since then, besides the price, will have all the know-how acquired over the years that one can hardly keep up.

Sharing here two experiments in which I spent in buying a camera and a few dvd's, in two different situations and European sites (one French and one Spanish, respectively). The camera's more recent, allowed a saving of 230 euros, which alone justified the purchase on that site and it is true that this was a promotional price, I might add that, even so, the value without promotion , was 150 euros lower than that in Portugal. Add to that, the price paid for delivery, EUR 9, which allowed the delivery of "hands on" 24 hours with the possibility of following every time the location of the order, we quickly realized that it is a reality that we are not in Portugal . Got this article on Pixmania .

If it is true that this machine could get a Portuguese site, it is also true that more would have to pay 230 euros and delivery, should be made by mail, would be charged roughly the same value, but with the worsening of the order will only be me delivered at least three days later, and if not at home, I would have to go to the post office next to go up the order. Is this an alternative? Certainly not.

In the case of DVDs, I bought 3 DVD's, now in Spain (the site was the DVDgo ), and although also the promotional price, allowed me a saving of around 14 euros each for a total of 42 euros, I paid 5 euros for delivery in "hands" in 24 hours, and recovery from delivery.

In fact, savings are considerable, with an unbeatable level of service.

I can then conclude that it is urgent that companies "integrate" this distribution channel, which make themselves known, which expose their products in this virtual storefront and that within the extent possible, practice different prices between your physical store and its online store, with advantages for the latter not to allow consumers to internalize an advantage when buying online, but they can go to acquiring the know-how and thus prepare themselves for the onslaught that will come from Europe, after all, we are already 25 .

Since the popularization of the Internet, most organizations have a sales channel for their products. While it is true that organizations as they develop their strategies are taking advantage of new distribution channels, it is also true that none of these is, in fact, new as the Internet.

If these new channels will companies explore, there are already other organizations to use it, thus taking better advantage, the result of experience gained during its use, then we can say that in the case of the Internet, we face a new channel distribution, in which all organizations are in the same starting point or if you will, this new channel, all companies start from scratch.

The successful use of the Internet channel will depend, more than the product (s) (s) / service (s) sold it, the way the organizations are, like, depending on the attitude they have towards this new channel.

This channel is so new, yet to explore and optimize. If it is true that some countries like the United States the Internet is already well massified, it is also true that still has many gaps, not only in terms of legislation but also the level of control and supervision, more importantly, the level of security .

In Portugal, along with the safety factor is also the suspicion factor and perhaps most importantly, the cultural factor. There is therefore a long way still to go in building trust relationships between organizations and consumers, leaving that issue for another article related to this theme.

Portugal is not even the most backward countries in the European Union and on the world stage at the Internet, but these things in relation with the consumer still has a long way to go and the starting point may be precisely the price. Moreover, if we consider the importance of price in four P's of Porter, we may even consider the price as a factor in the strategy to use this new channel.

Several reasons exist - the novelty of the channel, the Portuguese cultural factor, the low rate of Internet penetration in Portuguese homes - for this channel does not have "pulled", but certainly one of them is the fact that organizations have not succeeded yet, forward the benefits to consumers.

A strategy of differentiation by price, it will certainly be a determining factor for membership of consumers in this new channel.

Currently, any one of us comes to a site of consumption, beyond the information deficit about the products available, the limited range of choice, still faces a price identical to that found in the physical store. If we add to that the fact of delivery normally be consigned CTT , which charges about 3 euros (eg the minimum for an order for a CD) and it takes two to three days to deliver to consumers, and this, if not at home still has to go to the CTT post to lift the order. If we link the fact of not having had the opportunity to view the product in your hand before the purchase, I do not think the channel is as attractive as that.

However, if I can subtract from the final product price, a relative because you do not need to have the store and associated costs, not having to have so many employees, etc. I will be giving my clients the opportunity to purchase a product through Internet with a "discount" compared to existing in physical store.

Certainly we are facing a real factor differentiated, with clear advantages for the consumer, and thus for my business, since I will be a new distribution channel, thus reaching many more potential consumers in much the deal.

It is essential that organizations engaging in Internet Channel at lower prices, after all, if we put in place in the consumer, which would lead me to buy a product on the Internet at the same price as the store with all the mistrust that already pointed out, not can see the product in my hand, knowing it will still take some days to have it, and I have the job of processing the purchase, supporting the cost of Internet connection, print invoices / receipts?

Unless you live in a region ostracized, where the competition does not exist, surely the reader would rather move to a nearby store in order to evaluate the product and there, get it to take advantage of it immediately.

The Portuguese organizations must be alert to this phenomenon because, in today's world dominated by globalization - when we look at practical examples nearby, such as, for example, sites selling cameras ( Pixmania , Expansys , etc..) that are real world and online shops undercutting the order of 30% compared to prices in shops - who does not fit, you run the risk of "disappearing from the map."