Reaching Out To Reach Down

The Australian Financial Review:

Consultants to the $128 billion franchising industry say that many franchisors are failing in their attempts to take advantage of e-commerce.

“Many franchisors, yes they have a website, but they haven’t got an e-commerce strategy,” the executive director of DC Strategy, Rod Young says. “Whether they like it or not, e-commerce must be a distribution channel that will sit in parallel with their current bricks and mortar [retail] or service-based models.”

It’s an important equation to get right. Online retail is growing at an annual yearly rate of 29 per cent, according to research from the National Australia Bank, so to ignore e-commerce or to stumble in execution is an expensive option. The franchisees that have the biggest challenge are those that sell goods, which are a natural fit for online retail. However, service-based franchises and fast food restaurants should ignore e-commerce at their peril, the consultants say. Read more.

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