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 is buying a product in the first store that was going (eventually see the price in one or two stores and compare prices order) in the present scenario of the Internet, consumers have the possibility of seeking the lowest price for the product you want. Just for that, lose a few hours 'surfing' and all without leaving your home.

In addition, today's consumer has the opportunity to research the characteristics of the product you want to buy, after comparing with other products in order to see 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 profile the current consumer as a more informed consumer and no longer purchase on the first store where it enters.

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

This barrier to buying online is a generational issue, 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 shield, but our children will remember this coin?

All these unknowns mean that some companies do not consider their online presence, but nothing could be more wrong. The fact that they are not online, means that not only are seen, which did not make known their products, but also not included in the comparative prices 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) to have bet distribution of its products to Portugal. These companies, and have a fairly large volume of sales, and thus obtain higher economies of scale that allow them to charge lower prices and certainly not turn away from a market like ours.

As mentioned earlier, there is a barrier to online shopping in Portugal. But gradually, consumers will be available to overcome this objection, provided that 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 you what will be the first shop where you will move to acquire the next product? Sounds simple, right?

Gradually, are increasingly shopping online at European level (no longer speak as much of the U.S., due to the taxes which are needed to settle the case of an import outside the Eurozone) who bet on their 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 a distribution cost plus very low.

If present, only some stores do, with the evolution of the business and the 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 will allow you to optimize so practice the lowest prices and have a good level of services.

It is therefore essential that Portuguese companies agree on this issue for 10 years from now, do not appear on television to say they need subsidies because they can not compete with the prices of European companies by entering our market, without giving the slightest hypothesis of competition, since that time, besides the price, they will be a know-how acquired over the years that it can be difficult to follow.

Sharing here two experiments in which I spent in the purchase of 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 around 230 euros, which alone justified the purchase at that site and it is true that it was a promotional price, I might add that still promote the value without was lower than that charged 150 euros in Portugal. Add to that, the price paid for the delivery, 9 euros, 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 . I purchased this product on Pixmania .

If it is true that this machine could acquire a Portuguese site, it is also true that he had to shell out 230 euros and delivery, in the case to be made by mail, would be charged roughly the same value, however with the increased order will only be me delivered at least three days later, and if not at home, I would have to go to the nearest post office to go pick up your 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 discounted price, allowed me a saving of around 14 euros each for a total of 42 euros, paid 5 euros for delivery "hands on" 24 hours, and charge on delivery.

Indeed, a considerable savings and with an unbeatable level of service.

Can I then conclude that it is urgent that companies "integrate" the channel of distribution, which make themselves known, that expose their products and that this virtual storefront, within the extent possible, practice different prices between your physical store and its online store, with advantages for the latter, not to allow the consumer to internalize an advantage when buying online, but also so they can start acquiring the know-how and thus prepare for the attack to 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 the 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 exploring, there are other organizations using it, thereby taking advantage, the result of experience gained during its use, then we can say that in the case of the Internet, this is a new channel distribution, where all organizations are at the same point of departure 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 in some countries like the United States since the Internet is very mass, it is also true that still has many gaps, not only in legislation but also the level of control, supervision and, more importantly, the level of security .

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

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 to the consumer also has a long way to go and the starting point may be precisely the price. In fact, if we consider the importance of price in the four P's of Porter, we consider the same price as a determining factor in the strategy to use this new channel.

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

A differentiation strategy the price will certainly be a determining factor for membership of consumers to this new channel.

Now any one of us comes to a site of consumption, and loss of information about the products available, the limited range of choice, although a price is identical to that found in the physical store. If we add to that the fact of delivery, as a rule, be sent via the CTT , which charges about 3 euros (example of a minimum value for ordering a CD) and it takes two to three days to deliver to the consumer, and this, if not at home still has to go to the station CTT to lift the order. If we combine the fact of not having been able to visualize the product in your hand before the purchase, I do not think the channel is as attractive as that.

However, if I can avoid the final product price, a percentage on the fact that you do not need to have shop and associated costs, not having to have so many employees, etc.. I'll be giving my clients the opportunity to acquire a product through the Internet with a "discount" compared to that practiced in the physical store.

We'll certainly be facing a real differentiating factor, with clear advantages for the consumer and consequently for my business, since I'll be a new distribution channel, thus reaching many more potential customers in much the business.

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

Unless ostracized living in a region where there is competition, certainly the reader would rather move to a nearby shop in order to evaluate the product and then, buy it in order to enjoy it immediately.

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