Comments on: VAT to rise in January: Emergency Budget http://www.internetretailing.net/2010/06/vat-to-rise-in-todays-emergency-budget/ News, insight and analysis for Europe's ecommerce and multichannel retail professionals Wed, 08 Feb 2012 15:07:50 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Andrew Burgess, Managing Director, Equi=Mediahttp://www.internetretailing.net/2010/06/vat-to-rise-in-todays-emergency-budget/comment-page-1/#comment-12145 Andrew Burgess, Managing Director, Equi=Media Mon, 28 Jun 2010 11:30:28 +0000 http://www.internetretailing.net/?p=5481#comment-12145 The VAT increase in January will mean a bigger Christmas for all, as consumers stock up and splash out before prices rise. I expect that the January sales will mask the VAT increase for a while, but the rise will really start to bite in February. In preparation, retailers need to develop strategies that put them in good stead to compete for a hotly contested share of the customers’ purse. Pure-play retailers should be able to offer greater discounts than their high street counterparts, and they should make every effort to exploit this advantage. Cost efficient and well thought out media strategies which integrate complimentary channels will become even more important in the quest to drive sales. Consequently, affiliate programmes should increase in significance in the media mix as customer searching and buying behaviour becomes even more ‘offer-centric’. Small retailers finding it difficult to compete for market share against their larger contemporaries must focus on maximising the spend of their existing customers. Investing in customer service and development programmes should both be considered effective means by which to do so, and businesses which get this approach right will be best-placed to survive any turmoil caused by the increase. The VAT increase in January will mean a bigger Christmas for all, as consumers stock up and splash out before prices rise. I expect that the January sales will mask the VAT increase for a while, but the rise will really start to bite in February.

In preparation, retailers need to develop strategies that put them in good stead to compete for a hotly contested share of the customers’ purse.

Pure-play retailers should be able to offer greater discounts than their high street counterparts, and they should make every effort to exploit this advantage.

Cost efficient and well thought out media strategies which integrate complimentary channels will become even more important in the quest to drive sales. Consequently, affiliate programmes should increase in significance in the media mix as customer searching and buying behaviour becomes even more ‘offer-centric’.

Small retailers finding it difficult to compete for market share against their larger contemporaries must focus on maximising the spend of their existing customers. Investing in customer service and development programmes should both be considered effective means by which to do so, and businesses which get this approach right will be best-placed to survive any turmoil caused by the increase.

]]> By: Terry Hunter (managing director, 20:20 Technology)http://www.internetretailing.net/2010/06/vat-to-rise-in-todays-emergency-budget/comment-page-1/#comment-11967 Terry Hunter (managing director, 20:20 Technology) Thu, 24 Jun 2010 09:39:26 +0000 http://www.internetretailing.net/?p=5481#comment-11967 The VAT rise means that both retailers and customers will be anxious about shopping habits and both may well be thinking hard about making changes to adapt to the hike. For retailers, now more than ever is the time to make sure that you are engaging regularly, intelligently and effectively across all touch-point channels your customers have with your organisation to ensure they have access to the best deals and are reassured enough to continue their custom with your brand. Having a seamless e-commerce strategy supplemented with a multi-channel engagement strategy that ensures both a smooth route to purchase for customers and maximises sales opportunities for the brand will be vital as we wait to see how this latest VAT drama unfolds. The VAT rise means that both retailers and customers will be anxious about shopping habits and both may well be thinking hard about making changes to adapt to the hike.

For retailers, now more than ever is the time to make sure that you are engaging regularly, intelligently and effectively across all touch-point channels your customers have with your organisation to ensure they have access to the best deals and are reassured enough to continue their custom with your brand.

Having a seamless e-commerce strategy supplemented with a multi-channel engagement strategy that ensures both a smooth route to purchase for customers and maximises sales opportunities for the brand will be vital as we wait to see how this latest VAT drama unfolds.

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