News

December 2015

How successful Kiwi brands are entering foreign markets via the internet

NZ Retail

Opinion Piece by Andrew Buxton, CEO eStar

Major expansion in retail means acquiring new customers. In simple terms that is done either through the expansion of products, services, or brands offered, or by expanding into new markets. Traditional market expansion has been through adding more physical retail stores.

Traditional store growth for retail chains in New Zealand, with our small population of 4.5 million, usually reaches saturation at about 50-70 stores for most brands. For successful retail brands the next step is to look overseas. While there are many retail examples of international store expansion, such as Pumpkin Patch, Kathmandu or Rodd & Gunn, many have struggled to make such international expansion a financial success. Expansion through physical stores has a large commitment – store leases, fit-out costs, people costs, stock holding and distribution costs in market, not to mention market entry and store promotion. It’s a big commitment with high risks.

Read More

Fighting fraud this shopping season

Business Spectator logo

Opinion Piece by Andrew Buxton, CEO eStar

With the continuing growth in online shopping a less glamorous side of this trend is the increase in online fraud. As we head into the major shopping season of the year, expectations are that this year will be no exception.

Globally online retail fraud now accounts for over one per cent of all online sales, and with annual growth at nearly 24 per cent per annum it presents a clear and real threat to Australasian retailers. In this online environment, merchants are liable for every payment they receive. With credit cards without a signature being the most common payment method accepted, there is no fallback to the banks - online, merchants are responsible for their own security.

Services to help identify individuals – such as the MasterCard Identity Check are helpful and have some impact. But online fraud is largely “friendly” fraud, which means better verification of an individual won’t make any difference.

Read More