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Edcon continues online push. Red Square sets up ecommerce offering
FMCG SUPPLIER NEWS
BusinessTech.co.za - May 29th, 08:34
Retail group Edcon has launched its Red Square brand online, the latest of its stores to head into the realm of e-commerce.
The move follows the launch of CNA’s move to online retail in June 2012, and according to Edcon’s head of e-commerce, David Gibbons, the group is actively looking at which brands to launch next.
Despite the move online, however, Gibbons said that the group’s main focus is primarily on its brick-and-mortar operations.
“It’s still day one in terms of our e-commerce stores,” Gibbons said. “At this stage online is strategically and not financially important to the Group.”
“It’s also worth mentioning that research has shown that for every order online you can generate 15 in store. Our online sites therefore act as a virtual window to our stores, so we expect the biggest gain to still be in the physical stores.”
“Online shopping is growing in South Africa. Despite it being a small share of the market, we’ve decided to make our broad range of cosmetics available online because the increased sales are attractive to us,” Gibbons said.
Red Square online
Edcon’s Red Square stores offer over 3,000 brands relating to beauty, fragrance and cosmetics.
“Cosmetics is a great category for e-commerce. It’s easy to ship and lends itself to online shopping.
“Customers often know exactly what they’re looking for and a website can provide them with easy browsing of a huge range, good product information, customer reviews and insight about new products, for a rich shopping experience.”
The new online store is an obvious push to draw in the growing market of tech-savvy females which, according to a Nielsen study, feel they are the most appropriate decision maker for health and beauty purchases, Edcon said.
“Also it’s important to bear in mind that 92% of these women will share information with friends and family about deals and positive experiences. This is word-of-mouth advertising that cannot be ignored.”
A unique feature of the site is the free sampling programme which allows customers to select three samples from the range of brands – which will be included with every online order.
The store will offer free delivery on purchases over R350; otherwise a R45 delivery fee will apply.
From BusinessTech.co.za
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