buy.com cops an e-com beating
The channel's favourite new e-tail whipping boy has copped something of a beating from an e-commerce specialist with research company Goldman Sachs.
According to a report in The Australian, Anthony Nota from GS claims buy.com and a host of other Internet retailers must boost cash reserves within a year or "close".
Nota claims since Q4 1999, seven of 32 publicly traded consumer e-commerce companies had accessed the capital markets, while others had cut spending to conserve cash.
Meanwhile, Tabloid still hasn't forgotten the antics of buy.com's media-shy CEO Richard Baillie, who hung up on ARN's editor-in-chief when faced with questions about the "Wrath of Harvey" over that controversial "Spot the rip-off campaign" (see story below). It's a funny thing really. Most e-tailers view the channel press as an avenue to promote their emerging business model in an increasingly critical climate. Tabloid muses that Baillie must be confused and can't see an opportunity when it clicks him in the face.
Easy does it
Tech Pacific has reportedly been doing some naval gazing in the wake of an ARN report (24th May, page 1) in which Harvey Norman lashed out at buy.com, calling it a money- losing no-hoper. Gerry Harvey had also said "They [Tech Pacific] are obviously going to have a very sour relationship with Harvey Norman and every other supplier".
Since then, sources suggested TP is concerned about how to tackle the sensitive issue of how to treat e-tailers.
While that's not news to many, nasty rumours indicating that HN and TP's relationship was in trouble as a result of the report were quickly grounded as unfounded and untrue. Senior spokespeople from both companies affirmed the relationship remains as intact and healthy as ever - end of story.