ONLINE SALES BOOST COMPANY’S PROFIT

Recently, I’ve been posting about the benefit of social media in marketing world. Today, I found another interesting topic that is about a benefit of using e-commerce.

First, why do people prefer buying online than buying in the actual store?

1. Convenience – Save time, no queues, flexibility of time, no pressure from salesperson
2. Better Prices – easier to get more deals/ offers because you buy the products directly from the manufacturer without middlemen involved.
3. Variety – Can buy different brand at one place, can buy products from retailers in other parts of the country, greater selection of colours & sizes
4. Fewer expenses – no transportation cost to get to the store
5. Avoid crowds

Indeed, technology is rapidly growing and more people now count on technology for doing their needs. This is why online sales had become a trend among communities. Indeed, online sales bring profit to companies particularly Myer and Debenhams.

Myer’s Full-Year Profit in 2014

Online sales were a big contributor for Myer’s profit in 2014, representing 70 per cent of the total profit. It was bigger than the sales in the actual store. Myer claimed that

“Despite the flat overall result online sales was an area of growth, and Myer said transactions doubled in this area over the past year. Website visits were up 74 per cent to more than 38 million visits in FY14, while sales via mobile and tablet devices continue to increase”

The second company that said that online sales bring more profit to their company is Debenhams. Michael Sharp, chief executive of Debenhams said that

“The first half of Debenhams’ financial year, its Online Business recorded a bigger earnings before interest, taxes, depreciation, and amortization margin than its shops, even when central costs were attributed to the digital division” 

Both cases proved the rapid growth of online shopping and online business has taken place in the retail industry. In conclusion, companies who only had stores should consider expanding their business to online business to increase their profit. Other than increase profit, companies need less cost to create online business rather than opening another store.

So, what are your thoughts about online business? 🙂

Introducing Samsung Gear VR

A week ago, I saw a video about the new innovation from Samsung on Facebook. This video caught my attention since many of my faceboook friends shared it and liked it.

The ad tells a story of how a distance could make a couple missed their precious moment together. So Samsung wants to help two people who were separated by distance to be able to share important moment together by the presence of the world’s first live virtual reality birth called Samsung Gear VR.

Check out this beautiful 3 minutes advertising by Samsung !! It will definitely move your heart.

This ad has attracted viewers because of its originality and creativity. This video also has its own hash tag called #lifeLIVE. Not only #lifeLIVE, Samsung also create another hash tag called #SharkDive which basically provides the experience of diving with sharks by using Samsung Gear VR

Samsung shows off the power of the Gear VR by taking people diving in the outback

As this ad has spread over Youtube and Facebook, Samsung Gear VR has already known by many people and received good response from society for its design, performance, features, and value.

This Samsung advertisement is one of the examples of Social Media marketing, which is a component of Internet marketing under Digital marketing.

You can see another example from my first blog in https://cynn93.wordpress.com/2015/03/14/what-color-is-this-dress/.

For the last couple of years, researchers has proven that social media is the one that is obtaining a lot of attention. Millions of people spend much of their time for checking their Facebook, Instagram, Youtube, Twitter and other social media program. This is a signal for digital marketers to make social media as a part of the digital marketing campaigns.

So what do you think about Samsung Gear VR advertisement? Give your opinion 🙂