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.â€
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.