More competitors with the same product range hence more competition to attract the 1.5 million odd online consumers. It's a massive fate for any online retailer, especially the newcomers to the online retail sector. So how do you ensure survival? Back to basics and research. Your target market determines where you fit on the scale of success and survival in the online arena. The more focused an online store's target market is, the better its chance of survival in the ever evolving, ever competing online retail market.
Digital Planet, one of South Africa's oldest and largest online electronic stores has recently cut its product line by up to 70%. "The risk in reducing our product range meant that we would inevitably lose customers; however, more importantly, we would have a more focused, targeted customer base which is what Digital Planet needs," said Simoni Keet, marketing manager at Digital Planet.
In-house research is being conducted to correctly define not only Digital Planet's target market but also to get an insight into the buying behavior of customers. "We have become more focused on the top products. Our main reason for cutting back on a lot of our product line is that it simply takes too long to deliver to SA and we're committed to great service. However, we've seen a dramatic improvement in turnaround times of our streamlined product line through customer compliments which is always good," said Keet.
