The price is right
At the official opening of SCAN’s new retail store at its HQ in Bolton, HEXUS.channel spoke to SCAN director of operations Elan Raja.
Initially we wanted to know why SCAN is bucking the trend of traditional bricks-and-mortar retailers moving online by opening a physical store of its own. However, conversation soon turned to the tech industry in the UK as a whole and what Raja views as one of its most significant threats.
The phenomenon in question is, as Raja puts it, "The EDI boys". EDI stands for Electronic Data Interface and refers to the facility for pretty much anyone to set up a web shop using a data feed directly from a supplier or distributor.
While there's no reason to deny anyone access to the tech etailing market, the only way these new entrants can compete is on price. Using a technique called 'spidering' they can automatically monitor everyone else's prices and adjust their own automatically.
Again you might think "what's wrong with that?" But the likely consequence of it is an exaggerated emphasis on low prices to the detriment of customer service, post sales support and overall quality.
In an exclusive HEXUS.tv interview, Raja tells HEXUS.channel about this phenomenon and why SCAN believes it’s possible to be price competitive and still add value to the customer.
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