Internet offers host of opportunities for vendors

The Internet is a powerful force in the world and, increasingly, in this industry. Though different companies approach the issue in different ways, nearly everyone agrees that e-commerce and online business are valuable tools and evidently the wave of the future.

According to Home Accents Today's Internet Survey 2007, 90% of vendors have a Web site. That's good, because 95% of the retailers surveyed said they visit vendor Web sites, at least sometimes, with 75% of those saying they visit at least once a month.

According to Eric Dean, president of Web services provider Whereoware, being online is important, but there's more to it than that.

“Companies don't need a Web site,” Dean said. “They need a way to reach out to a customer they are not talking to. Technology is not an end to itself. It's got to solve a business problem.”

Lee Wang, executive vice president of Creative Co-Op, said his company has been e-commerce enabled for several years, but in the last year and a half, revamped its site. “The first year dramatically outpaced our expectations,” he said, with sales numbers that increased five- to six-fold over the numbers generated by the company's previous site.

“We just tried to make it as user-friendly an experience as possible,” he said. “It's a selling tool, but it's also a communication and convenience tool. Both reps and customers alike are finding it very useful.”

“We are in an enhancement period online,” said Adam Schrier, director of sales and marketing for Andrea by Sadek, noting that the company has had a full-service, shoppable e-commerce Web site including invoicing, ordering and in-stock status for more than six years.

“We have always believed that the Internet is going to be a very important channel to the time-compressed retailer,” he said. “This is a great way for them to shop.”

CBK launched its e-commerce site in 2004, then underwent an upgrade in 2006, said President Terry Stewart.

“Our customers can literally do anything on that site as they could do with our rep sitting in their store and utilizing the technology linked through the reps' computers,” Stewart said.

According to Greg Vandia, president of lighting company Murray Feiss, “Today, one in three homes has a computer that is Internet capable. So if you don't have a computer, chances are you know someone who does. The Internet supports, cooperates and complements our existing sales channels and can strengthen them and potentially open up new markets for us.”

Schrier said Sadek was making the move to even greater presence online because of changes in the Internet marketplace — specifically the penetration of high-speed Internet, and the increasing demand for new products.

“Our retailers are consistently demanding one thing — new products at a much faster pace every year,” he said. “New, new, new is driving the marketplace. Printed catalogs and visiting shows are almost too slow for the retailers' appetite.”

Creative Co-Op, CBK and Andrea by Sadek accept orders and re-orders through their sites, but Murray Feiss does not.

“We have an extensive and excellent state-of-the-art (customer service) system in place to take special care of our customers, and they like this,” Vandia said. “Our customers have the opportunity to speak to someone for details rather than just send in an order. We have found that this is a system we don't want to give up to the Internet because speaking with someone is always preferable.”

The companies Dean works with have different opinions as to how much posted information should be available for viewing by the end consumer, though he said there is a trend toward putting more out there.

“It's a choice of security vs. barriers,” he said. “If you want to keep your competitors from seeing your line, you can put everything behind a password. But you are putting up barriers to consumers and to dealers for learning about your company. We are seeing a trend to people becoming more open online, and I think that is because the product cycles are shrinking.”

Currently, Andrea by Sadek does not show their products online without password protection, but once the revamped Web site launches this month, it will allow end consumers to browse the entire product line, without the wholesale pricing information, Schrier said.

Consumers can access the Creative Co-Op site and see thumbnail images of the line, and can use a store locator to find a local dealer. All high-resolution images, ordering and pricing information are in a password-protected area.

For CBK, Stewart said, “there is a portion open to the public, but to protect our retailers and the access to wholesale prices the consumer cannot view beyond a few pages. Our site is a B2B tool,” he said. “It is not designed and we have no plans to be a B2C site. We are there to support our retailers.”

According to Vandia, the consumer-friendly nature of his company's newly revamped Web site “is one of the most exciting parts of our new Web site.”

“We have every one of our products with beautiful images to show them off, plus information about each category, but the best feature to show the consumer the quality and craftsmanship that makes our products so great is the zoom feature,” he said. “Just like a department store Web site, you can zoom in on a lamp or fixture to the finest detail.”

There is an ongoing debate as to whether the Internet will impact the role of sales reps, or even market attendance. According to the Home Accents Today Internet Survey, 29% of retailers say vendors' Web sites affect their relationships with sales reps, and 11% say the sites affect their market attendance.

“Having the site has absolutely not affected show attendance,” Stewart said, noting that most buyers visit shows to see new products. For now, the site's business is driven primarily by re-orders or fill-in orders, but new item ordering is increasing as the site is promoting “new” more often.

He said CBK pays full commission to its reps on every order, as long as those reps are servicing the accounts at the store level. Even if a brand new account places an order, the local rep receives some commission, Stewart said. “This supports linking the sales rep for future in store service.

“The reps that have really latched onto it as an extension of their service offerings are really benefiting, and their customers are benefiting too,” he added.

“Our customers still need to see, touch and feel products, so we don't think the Internet is affecting market attendance,” Schrier said. “They still need to see the full line at least twice a year. Do we think online can ever eliminate markets? We don't foresee that; we don't want that.”

As far as sales reps go, he said, “they have the opportunity to use the Internet as a tool to put products in front of their customers.”

All agreed that the Web is a vital business tool for staying competitive in this challenging marketplace.

“Retailers are very time-challenged,” Schrier said. “Many of them wear a lot of different hats. he said. Many of them say they shop at night by going online or taking catalogs home and to bed with them. We've always known that being able to provide service 24 hours a day is a great tool.”

“Retailers are pressed for time,” Stewart said. “They want to be able to talk about and shop for products, not on our schedule, but on theirs,” he said, noting that most of the site's traffic falls on nights and weekends. “We recognized that the busy independent retailer needed multiple ways to access account information and the ability to place orders 24 hours a day, seven days a week. We call it our virtual showroom.”

Wang said the site has been especially valuable over the past month. In early February, the company took a direct hit from a tornado, wiping out phone service and a lot of inventory. Having the site helped keep business moving, and also provided a way to communicate with customers about the status of the recovery process and their orders.