'No trade off for franchisees': Harvey Norman talks up online venture

Published on Tue, 29/11/2011, 01:52:23

|

By Claire Reilly

Following Harvey Norman’s drive into the world of e-commerce, the head of the company’s Computers’ Division, Ben McIntosh, spoke exclusively to Current.com.au to discuss what impact it would have on the company’s franchisee network, and to talk up the strengths of the new multi-channel offering.

“From customers the response has been quite pleasing,” said McIntosh. “It’s been well and truly above our expectations.

“I think ultimately the market is what demands the strategy of retailers. And I think there was definitely a need and want from our consumers to have an online offering. A multi-channel offering is the way to go for Harvey Norman, I think we’ve made the right decision.”

While Gerry Harvey has long been criticised for his tardiness in moving into online retail, McIntosh insisted that Harvey himself was “100 per cent” supportive of the new strategy.

“I think Gerry’s comments have always been about online standalone. He’s never really been all that negative about multi-channel – Gerry’s 100 per cent behind our multi-channel strategy. We wouldn’t be doing it without his support obviously, he’s the boss.

“Harvey Norman has come out and done it in a very good way,” added McIntosh. “The quality of the site is excellent, our product offering is excellent and our service levels are second to none thus far. We’ve been looking at different strategies for some time. We were rushing to make sure we had the service and the whole strategy correct rather than rushing to a deadline.”

Click here to sign up for our FREE daily newsletter
Follow Current.com.au on Twitter

Current yesterday revealed that Harvey Norman Online was acting as an independent franchise, and that the website’s terms and conditions stipulated it did not have to sell products for the same price as bricks and mortar stores. However, McIntosh insisted that no franchisees would be sold short in the new arrangement.

“All our stores, including our online, are operated by independent franchisees,” he said. “However, with our pricing model, we would expect all our franchisees to work together for the benefit of the customer. Suffice to say all franchisees are supportive of our online move. There is no trade off or play off between franchisees with our e-commerce strategy.”

According to McIntosh, the company has “a system set up internally to ensure all franchisees are supported by our online move,” which involved a level of financial support.

“It’s only just the beginning,” he added. “As one of the major retailers in Australia that hasn’t had an online multi-channel strategy up until now we’re going to be learning a lot.

“You’re going to see a lot of development and new service initiatives to make sure that when customers come to harveynorman.com.au they will get one of the best services you can get from an online retailer, anywhere in the world.”

I’m very confident and very bullish that we’re going to continue to have an A-class service offering with all our customers.




The website needs some more work Gerry needs make sure his advertised price is the same as the website eg the EMS3067X is listed on the web $739 and is is selling in the shops for $499.
Posted by trevfromoz. 04/12/2011 03:51:29 PM
Add your own comment




2,577
current latest news

New Laurastar LIFT - A New Way Of Ironing

Compact and light, LIFT is the first steam station with a handle that lets you take it everywhere from the ironing board to the hanger. It is as effective for a final touch on a hanging garment as for ironing a shirt on the board itself.

Wed 01/05/2013 01:16:14 / Read More »

Electrolux TURBOPRO stick mixer

The Electrolux TURBOPRO stick mixer combines excellent performance and powerful features. This intuitive stick mixer will take your cuisine to the next level, whether it's whisking an egg, grinding a curry paste or blending an icy cold cocktail.

Fri 26/04/2013 12:27:51 / Read More »

Electrolux Ultracaptic takes cleaning to a whole new hygienic level

The bagless vacuum cleaner that makes dirt and dust disposal a truly fuss-free affair! Coping with dust clouds, re-vacuuming spilled dirt and handling grubby tangles of hair with bare hands are now things of the past.

Fri 19/04/2013 10:53:16 / Read More »

TOPFIELD brings home entertainment to the fast lane - launches TF-12-3-A

The TOPFIELD-12-3-A: premium family pack for viewing on the go. Recognising a shift in consumer viewing trends, TOPFIELD has just launched its first in-car iPad accessory to ensure customers feel at home even when on the move.

Fri 15/03/2013 11:53:05 / Read More »
current join to free enews