WHAT WE LEARNED THIS WEEK: Gerry Harvey understands online retail better than you think

Gerry Harvey came to his own defence this week in writing a piece over at Business Spectator about why he actually does understand online retail – and may be one of the few that do.

While some of Harvey’s points may have been questionable, there’s some truth here. Harvey’s made a few key points worth considering.

One of those is that Harvey Norman is actually one of the few companies releasing its sales figures. Myer and David Jones aren’t saying how much online sales make up as a proportion of total revenue.

Note: This article originally stated JB Hi-Fi does not disclose online sales figures. In the company’s latest report, it shows online sales accounted for 1.4% or $25.7 million of total turnover. 

Why not? It could be that the figures are just too small right now. But at least Harvey is being open about where the company’s performing.

If competitors were to reveal just how much of their business is done online, it would make this entire debate a lot less abstract.

Keep your social media in check

Coles found itself in hot water last week, the latest business to be burnt by social media, after prompting a discussion piece on its Twitter account.

The company asked users what particular grocery item they couldn’t live without, which sparked a flurry of replies, many of them actually speaking out against the company and its practices.

This has been tried and failed before by a number of other Australian companies, and as social media reputation management experts rightly told SmartCompany, it’s getting a little old.

This incident proves two things. The first is that this is an outdated way of trying to force a conversation. Businesses need to realise they must start conversations and drive engagement using other, less risky methods.

The second is this – businesses must start organising their social media campaigns across departments. If the communication department doesn’t know what the marketing department is doing, any social media campaign will be a mess.

Social media covers every part of the business, not just the person dedicated to handling the Twitter or Facebook profiles. Spend some time getting everyone up to speed, and you’ll end up having a much smoother operation.

No surprise here – ecommerce set to thrive in next five years

Last week Access Economics released a report detailing how the retail industry is set to grow over the next four or five years. And while the lookout is fairly mild, there are two key areas of growth – ecommerce and household goods.

The growth in household goods is set to come as property rates fall and buyers are spurred to get into the market.

But the ecommerce growth is no surprise. Over the next four or five years, Access Economics partner David Rumbens said, ecommerce is set to be at the forefront of a structural change in the industry, which will boost online sales more than those in bricks and mortar.

You probably know by now, but ecommerce is going to be even bigger in the next few years. Best to get on board now before it’s too late.

Keep an eye on your energy usage

Sydney SME CarbonSystems was given a boost earlier this week when it announced Microsoft had chosen the company to run its data management worldwide. The company will now track all of Microsoft’s energy usage, and then give reports back on how it can save money.

This is a trend that’s only going to become more popular in the next few years as the carbon tax becomes more important. Managing your energy usage will become critical.

You don’t necessarily have to use a third-party provider like CarbonSystems, but there are always technical ways of maintaining your energy at an efficient rate.

Explore software and hardware designed to save you money. Think about how you’re using your energy – especially if you rely on technology a lot – and then investigate ways to cut down.

Acquisitions don’t always work out – due diligence can help

Deals Direct has made a fair few acquisitions over the past year, and they all make sense in one way or another. Co-founder Paul Greenberg has said these purchases were always for either finding new talent or opening a new business division, and in that sense they’re all well-chosen companies.

But as Greenberg told SmartCompany earlier this week, not all the acquisitions pan out. Some of them don’t always work due to undercapitalisation or just poor consumer demand.

Buying a company to expand isn’t always a bad strategy, especially online, but you need to be careful about how such a strategy will work. Do your due diligence, think about the market, and then make a move.