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AN EXPLORATION OF THE IMPLICATIONS OF THE WORLD WIDE WEB FOR RETAILERS

The use of the Internet continues to grow, although the actual number of users is difficult to estimate. In 1997, the market research group eMarketer estimated that there were 36 million Internet users worldwide, up from 19 million in 1996; and it estimates that this figure will quadruple to 142 million by 2002, an annual growth rate of 79% (eMarketer, 1998a). On the other hand, it is possible to relate the number of Internet users to the number of host computers i.e. the numbers of computers connected to the Internet. A survey conducted in January 1998 estimated that there were 8.2 million company hosts and 3.9 million educational hosts out of a total of 29.67 million (Network Wizards, 1998).

For businesses the Internet offers a wide range of uses, including: e-mail, access to the graphical interface of the Internet - the World Wide Web (Web), access to newsgroups and remote access by staff such as a salesforce. A DTI Information Society Initiative survey in the United Kingdom, (Key Notes Market Report, 1997) found that most firms were using the Internet to access information (91%), with significant numbers also using e-mail (65%). Only 42% of firms were using the Internet for advertising and marketing and 21% for purchasing. In addition, only 10% were using the Internet to make on-line sales. Thus, for businesses, it is important to note that Web sites can have a number of uses. Some sites enable on-line transactions to take place; others are only nontransactional sites covering media information, advertising and information pages. Despite the small proportion of Web sites which enable on-line sales to be made, there continues to be a large increase in the number of businesses with Web sites. In the light of these developments, this article sets out to focus upon the significant changes that have occurred in respect of Web sites and their impact on retailing.

WHO'S DOING WHAT, AND WHY?

Businesses on the Internet can be categorised into three groups. Firstly, there are the retailers which have an existing 'physical' business, for example, those businesses on the high streets and in the shopping malls of the U.K. Many of these are convinced...

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