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Innovation in Practice
Delivering eCommerce - Q&A with Taig Karanjia, Rex International
In a turmoil economy survival for business is critical. Survival comes from delivering business value - managing costs, keeping the business running and delivering the customer and market value. It is survival of the fittest just like in the world of nature as described by Charles Darwin, "In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment."
Those who survive are the most adaptable. The key in business is in creating opportunities, evolving and innovating. This Q&A article looks at how businesses are innovating and the road they take to success.
The past 12 months have been tough as we deal with the economic recession. During this time, you have changed and innovated your business. What were some of the business challenges you were facing at the time?
Taig: Like any business maintaining turnover and profitability was key.
What did you do to address these challenges?
Taig: Wholesale is our main business and the recession has affected the high street. With this in mind we decided to expand our online retail site www.dotcomgiftshop.com as a counterweight to any downturn in wholesale turnover brought on by independent gift shops closing or being overwhelmed by supermarkets trying to maintain there own catch all strategy.
Entering a new market in an economic downturn can be challenging, how did you tackle this?
Taig: We had already started dotcomgiftshop a couple of years ago as a very small sideline on a budget of £2,500. But last year decided on a rebuild and invested a considerable amount of time and money. We increased the product range from 600 to 3000 and tied in the stock control to our main database with continuous feeds.
We saw the downturn as an opportunity to expand rather than a reason not to. There is still an upturn in internet selling.
The market is flooded with information - how did you break through all this clutter to promote your business?
Taig: We get regular publicity in magazines and newspapers as they know we are a good source for giftware. We are also on Twitter (@Dotcomgiftshop) and currently monitoring its effectiveness and similarly with Facebook.
What successes have you seen?
Taig: The only real guaranteed successes are happy customers who inform others. Although this is not the fastest route, it is the most stable for the longer term play. People want quick delivery, customer service simple but effective.
And where to next?
Taig: Ahh tricky we are still finishing off some improvements, better checkout design, wish list etc. The only sure thing is that we will not stand still now that we have decided to enter the e-commerce market properly.
How do you engage with your market and customers?
Taig: We have recently launched product reviews on the site which is going remarkably well. I think the key is to only launch a feature like this when you have enough customers so you can be sure of regular contributions. We publish all reviews good and bad. The customer is always right ... apparently.
If we take a step back, how do you develop and research new ideas and opportunities?
Taig: We constantly try and think of new ideas and have some lively inhouse discussions! We are approached daily by people offering "opportunities" a good test is to say you are too busy to take the call but email instead. Anybody insisting on call only or a quick decision has recently left the double glazing business!
But we are very aware of not being too gimmicky. Customers only want useful features that will enhance and speed up the shopping process. There are plenty of sites to waste time on. So if they have come to a gift site then make it easy.
What have been some of the highs and lows of your journey?
Taig: Developers and developers. The lows are waiting for developers to finish crucial features. The highs are rolling them out and getting an instant reaction.
Hosting your site, how important was it to find the right provider and what has been the experience?
Taig: We had our wholesale site hosted with another large UK provider but found their service levels did not support our business. So when it came to the retail site we were much more careful in our selection. I shortlisted on the basis of price and server specification to meet our requirements and then trawled forums and information sites looking for negative comments. Based on my research I was then satisfied that DediPower were the company of choice. The only way to test a hosting company is when something goes wrong! Which on occasion when developing a new site it does, with DediPower I found resolution always quick, helpful and courteous and know I made the right choice.
Where do you look to for innovation and motivation?
Taig: Everywhere for innovation. In particular some of the largest turnover sites such as Amazon and Marks and Spencers. However be aware that not all of the features or ways they operate are suitable. Some are just plain bizarre. I get the impression that because of the plethora of companies offering new exciting ways to improve a conversion or return visitor by 0.01% that managers are compelled to spend their budget for fear that their directors think they might be missing out.
Motivation is always growth the potential is unlimited on the internet.
And finally, what tips do you have for a business looking at using the internet to go to market?
Taig: Very simple. Customer service and transparency of your business model.
There is a lot of competition out there be sure you are able to offer or have an angle that sets you apart.
Be sure to react quickly to changing events.
