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www.chapters.ca |
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Moving
from a successful “bricks-and-mortar” retailer to an equally successful
“clicks-and- mortar” strategy can be daunting. But recent studies
from the University of Texas and the U.S. Department of Commerce predict
that e-commerce will comprise 4.4 percent of the U.S. gross domestic
product by 2002. Canadian-based book retailer Chapters, Inc. recognized
the possibilities that the Internet provides and launched Chapters
Online.
Chapters, Canada’s largest book retailer, operates 70 superstores and 243 smaller
stores. When the retailer expanded into the online world, the company knew that it had
to stick to its original mission of providing a world-class selection emphasizing products
and content of interest to Canadians. Chapters designed its site with a focus on Canadian
books, music, and movies, with reviews by Canadian critics and Canadian best-seller
lists. It also extended the online experience to its retail stores. Its 70 superstores house
kiosks that conveniently provide online ordering when a book is out of stock. The
company teamed up with established technology leaders Cisco and AT&T (a Cisco
Powered Network provider) to maximize time and resources to quickly launch the best
possible site. Chapters Online launched its Web site, www.chapters.ca, three months
after concept, in April 1999.
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While planning an e-commerce strategy, network reliability and redundancy are crucial
for the best customer experience. To address reliability issues, Chapters Online deployed
Cisco software to prevent any bottlenecks, giving online shoppers quick access to all
areas of the site at all times. To successfully handle redundancy concerns, Chapters
erred on the side of caution and added backup systems to ensure uninterrupted service.
It knew even the smallest degree of visitor frustration might prompt potential customers
to flee the site. To date, the site has yet to experience any downtime.
Today, Chapters Online is Canada’s most popular online retailer. In
its holiday quarter, revenue was 2,000 percent higher over the same
quarter just one year earlier. In 1999, Chapters sold Canadian-focused
merchandise to more than 400,000 online customers. Industry experts
say that the company is at least one year ahead of the country’s other
online retailers. This example shows that with careful planning and
the right alliances, a bricks-and-mortar company can transform itself
into an e-commerce powerhouse. |
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