Full text from cashcowmag.com on ANYI
What did this cost?
Shares
Outstanding:
3,074,400
Estimated Float:
1.7 million
Estimated Insider
Ownership:
12.6%
Estimated
Institutional
Ownership:
under 3%
Market Makers
(Anticipated):
Capital Bay Securities and Herzog, Heine, Geduld.
Officers, Directors and Key Personnel
J. Scott Sitra
President, Chief Executive Officer and Director
Robert C. Schick
Chief Technology Officer and Director
Alfred W. Delisle
Business Development Manager and Director
Robie Blair
Manager of Information Systems
Cameron B. Yost
Secretary, Treasurer and Director
Richard Baron
General Manager
Corporate Summary
Anything Internet Corporation is an Internet e-commerce holding
company focused on building a network of successful e-commerce
operating companies, joint ventures, strategic alliances and
partnerships. The anticipated outcome of these various endeavors is the
creation of the first true e-commerce conglomerate.
Unlike most e-commerce businesses today, Anything Internet is not
limiting itself to one specific area of e-commerce (ie. books,
computers, CDs, etc.). Rather, Anything Internet is aggressively
pursuing diversification into a variety of emerging consumer and
business-to-business e-commerce venues. If successful, Anything
Internet will have:
minimized its exposure and risk to normal industry specific
business down cycles;
increased its chances of participating in one of the few
expected "super successful" Internet e-commerce ventures;
and
created more site traffic and revenue generating opportunities
by referring potential customers to other Internet storefronts
owned and operated by Anything Internet rather than by a
third-party.
Currently Anything Internet operates through one wholly-owned
subsidiary, AnythingPC Internet Corporation ("AnythingPC").
AnythingPC is a rapidly growing Internet based discount retailer of
over 201,000 different computer hardware, software and peripheral
products to end consumers and businesses. Through its Internet
storefronts - www.anythingpc.com, www.anythingmac.com, and
www.anythingunix.com - AnythingPC offers one-stop shopping to its
customers 24 hours a day, seven days a week. In addition to its wide
array of product offerings, AnythingPC's storefronts feature competitively
priced "Hot Products", an easy-to-use graphical interface, a powerful
search engine to locate any product desired, a unique "quote monkey"
for pricing assistance on hard-to-find products, and a special "notify me"
feature that automatically notifies customers when a backordered
product arrives in stock and keeps the customer appraised of the
estimated time of arrival.
Since its incorporation on August 15, 1997, under the laws of the
state of Colorado, Anything Internet has experienced tremendous
growth in both monthly revenues and visitors to its various Internet
storefronts. Monthly sales have since climbed to over $400,000 in
March 1999. Over the same period of time the number of monthly
"hits" have grown to over 1,000,000. To enhance its brand
awareness and monthly traffic to its Internet storefronts, Anything
Internet has begun entering into strategic marketing alliances with
popular Internet content providers and sites of interest such as
C|Net's Shopper.com mySimon.com, Priceline.com and
bottomdollar.com as well as technology enablers such as Digital River,
Inc. (NASDAQ: DRIV ). Anything Internet is currently in
negotiations with several other popular content providers and sites of
interest to greatly expand the number of such strategic alliances to
further enhance its Internet storefronts' technology, expand brand
awareness, monthly traffic and subsequent revenues.
Anything Internet is currently headquartered in Colorado Springs,
Colorado and has a business-to-business sales and support office in
Tampa, Florida. Banyan Corporation (OTC BB: BANY ) owns
approximately 26% of Anything Internet's Common Stock.
Industry/Internet Overview
The Internet has emerged as a significant global medium for communications,
information and commerce, enabling millions of people to share information and
conduct business electronically. Anything Internet believes growth in Internet usage
and online commerce has been fueled by a number of factors including:
the large and growing installed base of advanced personal computers in the
home and office;
improvements in network infrastructure and bandwidth;
easier and cheaper access to the Internet;
increased awareness of the Internet among consumer and business users; and
the rapidly expanding availability of online content and commerce which
increases the value to users of being connected to the Internet.
Forrester Research, Inc., a market research firm, issued a report in December 1998
predicting U.S. business trade on the Internet will explode from $43 billion in 1998 to
$1.3 trillion in 2003. Meanwhile, International Data Corporation ("IDC"), another market
research firm, estimated the number of Internet users worldwide will grow from
approximately 69 million at the end of 1997 to approximately 320 million by 2002. In
addition, IDC estimates that the percentage of such Internet users buying goods and
services on the Internet will increase from 26% in 1997 to 40% in 2002. The two
largest segments of Internet sales are expected to be computer hardware, software
and consumer electronics purchases and travel and vacation planning.
Traditional Methods of Retailing
The traditional retail industry is comprised of both store- and catalog-based
companies. Anything Internet believes that these retailers face inherent structural
limitations that may not allow them to take full advantage of the growing worldwide
retail marketplace and their customer's increasingly complex and busy daily
schedules.
Store-based retailers have limited shelf space due to costly inventory, store personnel
and real estate considerations that limit the number of stock keeping units (SKUs)
they can offer to their customers. Anything Internet believes that large store-based
retailers, also called warehouses or superstores, typically carry only about 4,000
SKUs. As a result, manufacturers compete for scarce retail shelf space and access
to the large distributors that supply these store-based retailers. Thus, manufacturers
incur a significant expense to gain this access and retailers face the risk of carrying
inventory that may quickly become obsolete. In addition, the store-based retailers'
merchandising process, which requires that the retailer physically obtain, set up, and
display product limits the speed at which these retailers can change their
merchandise mix and offer new products. Furthermore, because store-based retailers
must make significant investments in inventory, real estate and on-site personnel, they
are not able to expand quickly into new geographic regions. Personnel costs also
limit the number of hours during which store-based retailers may operate, thereby
limiting customer access and convenience. Additionally, store-based retailers face
challenges in hiring, training and retaining knowledgeable sales staff conversant and
up-to-date on the broad array of hardware and software products.
Catalog retailers offer their customers the convenience of shopping from home or the
office and more flexible hours of operation, but they are still constrained by catalog
mailing, printing and associated expenses as to the number of SKUs they can feature
and the amount of product information they can provide. Anything Internet believes
that a typical catalog retailer carries up to 40,000 SKUs, but typically only features
2,000 - 3,000 SKUs in any single catalog. Furthermore, the entire catalog shopping
experience is, in general, neither interactive nor personalized, yet requires extensive
personnel support and manual intervention on behalf of the retailer to take and process
orders. Anything Internet also believes that many catalog retailers focus primarily on
the corporate marketplace.
Anything Internet believes that the business model of the traditional retailer results in
inefficiencies that are exacerbated by, among other things, the broad array of products
and the rapidly changing world we live in. Anything Internet believes that Internet-based
retailers are well positioned to solve and capitalize on these inefficiencies.
Industry/Internet Overview
Anything Internet understands the key business challenges of the retailing industry
and has adapted to the unique environment of the Internet to address those and
anticipated future challenges. Anything Internet believes that the key operating
advantages of its Internet storefronts and e-commerce in general are:
Attractive Economics of the Internet Storefront -- As an Internet-only retailer, Anything
Internet is not constrained by the inherent limitations of store- and catalog-based
retailers. Anything Internet enjoys structural economic advantages relative to
traditional retailers, including:
low-cost and essentially unlimited shelf space;
flexible advertising and affordable merchandising opportunities;
lower personnel requirements;
scaleable technology and systems that can serve a fast-growing customer
base; and
the ability to serve a worldwide customer base from a single, domestic location.
Anything Internet intends to leverage its Internet storefronts, content provided,
marketing and technology over a growing global customer base resulting in substantial
economies of scale that it believes should enable it to achieve greater operating
margins, product diversification and, ultimately, levels of profitability compared to
tradition retailers.
Customer Convenience -- Anything Internet provides enhanced customer convenience
by enabling customers to purchase products from either their home or office 24 hours
a day, seven days a week. Anything Internet believes that customers may buy more
items because they have more hours to shop, can act immediately upon impulse, and
can readily locate items that are difficult to find in retail stores or catalogs.
Selection -- Because its shelf space is low-cost and virtually limitless, Anything
Internet is able to offer some of the most comprehensive selections of products
available. To offer such a large selection would be economically and physically
impractical to stock in a retail store or publish in a mail-order catalog. For example,
through its wholly-owned subsidiary AnythingPC Internet Corporation, Anything
Internet currently offers more than 201,000 computer hardware, software and peripheral
products.
Low-Cost Distribution Channel for Manufacturers -- Unlike traditional store or
catalog retailers that often charge manufacturers for "shelf space", Anything Internet
can offer the same manufacturers electronic "shelf space" with no up-front cost.
This benefits Anything Internet in better margins on certain products, the
manufacturer gains additional retail presence with no up-front costs, and the buyer
gets access to desired products at extremely competitive price.
Customer Service -- The inherent nature of the Internet allows for improved pre-
and post-sales support via both e-mail and telephone. Customers may inquire
about the status and tracking of their orders via Anything Internet's Internet
storefronts. Also, customers can choose to be notified automatically when a
backordered product they desire has arrived in stock and is available for shipment.
Worldwide Customer Base -- Because the Internet is worldwide in scope,
Anything Internet can offer its entire product line to customers in domestic,
international, urban and rural locations where finding the product desired by the
customer is not always a simple task.
AnythingPC Internet Corporation
AnythingPC Internet Corporation, a wholly-owned subsidiary of Anything Internet, is a
rapidly growing Internet based discount retailer of over 201,000 different computer
hardware, software and peripheral products to end consumers and businesses.
Through its Internet storefronts - www.anythingpc.com, www.anythingmac.com, and
www.anythingunix.com - AnythingPC offers one-stop shopping to its customers 24
hours a day, seven days a week. In addition to its wide array of product offerings,
AnythingPC's storefronts feature competitively priced "Hot Products", an easy-to-use
graphical interface, a powerful search engine to locate any product desired, a unique
"quote monkey" for pricing assistance on hard-to-find products, and a special "notify
me" feature that automatically notifies customers when a backordered product arrives
in stock and keeps the customer appraised of the estimated time of arrival.
The growth and acceptance of selling computer hardware, software and peripherals via
Internet e-commerce has been surprisingly fast. AnythingPC made its first
e-commerce sale in December 1997. Since then its monthly revenues have climbed
to more than $400,000 in March 1999.
AnythingPC's Internet Storefronts
Customers access AnythingPC's Internet storefronts through www.anythingpc.com,
www.anythingmac.com or www.anythingunix.com and are presented with a simple,
intuitive and easy to use graphical interface. AnythingPC has learned that customers
entering the storefronts generally fall into one of two categories:
they are looking for specific product and wish to purchase it quickly and at a
competitive price; or
they are browsing the store and seeking an entertaining and informative
shopping experience.
AnythingPC's Internet storefronts are designed to satisfy both types of customers.
Just like a physical retail store, customers can browse the departments of the store,
search for specific needs, view promoted products, obtain product information, order
products, and ask for customer service. Unlike the traditional retail store, this can all
be accomplished from the comfort and convenience of the customer's home or office.
Shoppers purchase products by simply clicking on a button to add products to their
"virtual" shopping baskets. Customers can add and/or subtract products from their
shopping baskets as they browse, prior to making a final purchasing decision, just as
in a physical retail store. To execute orders, customers click on the buy button and
are prompted to supply shipping and, in the case of consumers, credit card details,
either by e-mail or by telephone. The store design enables purchasers to buy several
products at once, rather than having to repeat the same purchase process for each
desired product. All customer information is stored on AnythingPC's secure server
and is used to enhance subsequent shopping experiences by the repeat customer and
better enable the AnythingPC to target special promotions. This process is highly
automated, but AnythingPC does accept orders, questions and requests for product
information via the telephone for those customers who are concerned about sending
credit card information over the Internet.
Marketing and Promotion
Anything Internet's marketing strategy is to promote, advertise and increase its brand
visibility to attract new customers through multiple channels, including:
developing strategic alliances with major portal sites;
advertising on leading Internet sites and other media worldwide;
expanding Anything Internet's affiliates network and linking programs; and
direct marketing to existing and potential customers.
Anything Internet believes that the use of multiple marketing channels reduces
reliance on any one source of customers, lowers customer acquisition costs, and
maximizes brand awareness.
Strategic Alliances -- Anything Internet pursues strategic relationships to expand its
online presence, increase its access to online customers, expand brand recognition,
and enhance the underlying technology of its Internet storefronts. In pursuing these
relationships, Anything Internet seeks exclusive or semi-exclusive positioning for the
sales of computer related products on key screens of major Internet sites. To date,
Anything Internet has established successful strategic alliances with companies such
as C|Net's Shopper.com , mySimon.com,Priceline.com,bottomdollar.com and Digital
River, Inc. (NASDAQ: DRIV).
Online Advertising -- In addition to its primary strategic alliances, Anything Internet
utilizes numerous online sales and marketing techniques to increase brand recognition
and drive traffic to its Internet storefronts, including banner advertising on various
high-traffic Internet sites. Such banner advertisements can be permanently displayed
for designated periods of time or displayed when a user searches for information
relating to certain keywords (ie. "printers" or "software").
Direct Marketing -- Anything Internet believes that the demographics of Internet users
overlap one-to-one with the demographics of potential customers, especially those
seeking to purchase new computer hardware, software and peripheral products.
Anything Internet believes that the Internet provides additional opportunities for direct
marketing to its customers through a variety of mechanisms, and is exploring such
direct marketing opportunities to target new and existing customers with customized
offers such as an e-mail newsletter, special product offers and preferred customer
offers.
Linking -- Anything Internet believes it is important to create as many Internet "links"
to its Internet storefronts as possible. Anything Internet has begun an aggressive
program to increase the number of links from search engines, manufacturers' Internet
sites, community, affinity and basic home pages.
Customer Service -- Anything Internet believes its ability to establish and maintain
long-term relationships with its customers and encourage repeat visits and purchases
depends, in part, on the strength of its customer support and service. Customer
support and service personnel are responsible for handling general customer inquiries,
answering customer questions about the ordering process, and investigating the
status of orders, shipments and payments. Anything Internet has automated some of
the tools used by its customer support and service staff, including the tracking
screens that enable its support staff to track a transaction by any of a variety of
information sources. At any point in the purchasing process, customers can access
Anything Internet's support staff by e-mail, fax or telephone. Customers who are
reluctant to enter their credit card numbers through the Internet site are also invited to
call Anything Internet directly for purchases. Anything Internet currently employees a
growing staff of dedicated customer support and service personnel.
Anything Internet's Strategy and Opportunity
Anything Internet's objective is to become the first true e-commerce conglomerate.
Anything Internet intends to capitalize on and extend its market position as one of the
first-mover e-commerce companies through the following key strategies:
Building Brand Awareness -- Anything Internet believes that building brand awareness
of its Internet storefronts is critical to attracting and expanding its customer base.
Anything Internet intends to continue building brand awareness and expanding its
customer base through various marketing methods, including:
building strategic alliances with various Internet content providers and sites of
interest;
Internet marketing campaigns, including both general and direct advertising;
creating as many general and specific "links" to Anything Internet's various
Internet storefronts as possible;
targeted non-Internet marketing programs aimed at generating sales from
consumers and businesses; and
specialized programs, including "personalization" features, directed towards
building repeat business from existing customers.
Promote Repeat Purchases -- Anything Internet's strategy is to build customer
loyalty and thereby promote repeat buying by providing enhanced product
information to consumers, efficient site navigation and search capabilities,
personalized services and targeted communications and promotions, and a
broad range of immediately available products.
Leverage and Further Develop Strategic Relationships -- Anything Internet intends to
continue to leverage its strategic marketing alliances with popular portals and sites of
interest such as C|Net's Shopper.com mySimon.com, Priceline.com and
bottomdollar.com and technology enablers such as Digital River, Inc. (NASDAQ: DRIV
) to enhance its Internet storefronts' technology, expand brand recognition and
increase site traffic and subsequent customer sales. Anything Internet also intends to
expand its online visibility and may enter into relationships with additional Internet
access providers, search engines and other high-traffic Internet sites.
Maintain Technology Focus and Expertise -- Anything Internet intends to continue
maximizing the unique efficiencies of the Internet, such as the ability to make changes
in merchandising and content in real-time and at low cost, to:
increase merchandising effectiveness;
personalize the customers' experiences; and
improve operating efficiencies.
Anything Internet is currently developing systems and technologies to personalize
visitors' shopping and post-shopping experiences. By targeting content and
promotions such as e-mails, newsletters and store advertising, Anything Internet can
deliver more compelling promotional programs. Anything Internet also intends to use
such technology to lower transaction costs and improve the customer's online
shopping experience through:
the automation of customer service functions such as automated e-mail
responses and online in-stock status;
product management such as using automation to update the product
databases and create upsells and links to product reviews; and
communications with suppliers for purchasing and automating payment
methods for accounting.
Strengthen First-Mover Advantages -- Anything Internet believes that significant
barriers exist that are making it increasingly difficult to enter the online computer
products marketplace in a cost-effective manner. These barriers include:
- the necessary up-front investment in technology and technical infrastructure,
such as that required for real-time processing of both payment and order fulfillment.
International Data Corporation, a market research firm, recently reported on average
that it costs an average of $6 million to establish a new e-commerce site plus an
average of $13 million annually to maintain and promote it;
the time and expense required to build a brand that effectively draws customers
to an Internet site;
the time, expense and expertise necessary to develop publisher and distributor
relationships; and
the need to develop strategic alliances with high-traffic, high-profile Internet
sites.
Anything Internet intends to extend its first-mover advantages in each of these areas. |
