MGI Software Corp -
MGI's Zoom used by major U.S. retailers
MGI Software Corp MGI
Shares issued 32,911,026 1999-12-22 close $27.1
Thursday Dec 23 1999
Mr. Josef Zankowicz reports
Major U.S. retailers such as Nine West, Bloomingdales, the Gap, Johnston & Murphy and 800.com are using the company's Zoom Imaging technology to increase sales this holiday season. MGI Software's patented technology allows Web retailers to create highly interactive, photo-realistic environments where consumers can quickly examine goods in high-resolution detail on Web pages, regardless of their Internet connection speed. Leading Web merchants in the U.S. and Japan are in agreement that integrating MGI Software's Zoom technology with their Web sites is not only increasing sales, but also helping to improve service and build customer loyalty.
According to Shop.org, the only trade association focused exclusively on Internet retailing, on-line retail revenues are projected to reach $9-billion for the Nov. 1 to Dec. 31 holiday period. But as an increasing number of shoppers flock to the Internet to avoid holiday shopping crowds, many of them will become frustrated by the experience and abandon their transactions. NFO Interactive's studies show that more than two-thirds of reluctant e-shoppers indicated low confidence levels as the primary reason they did not complete their purchase. According to market analysis firm Datamonitor, inadequate information and customer service will cause e-retailers to lose as much as $3.2-billion in sales by this Christmas. MGI Software's e-commerce imaging solutions provide the potential to recoup these additional sales.
After implementing MGI Software's Zoom technology Nine West found that its Web sales increased by 30 per cent while presales calls to customer service about specific product details curtailed by 30 per cent. Since implementing Zoom, on-line returns were half their print catalogue returns. More importantly, Nine West experienced a significant increase in its conversion of on-line browsers into actual buyers.
"Research proves it. On-line shoppers buy more if they can actually see the quality of the merchandise," said Anthony DeCristofaro, president and chief executive officer, MGI Software. "Our Zoom imaging technology provides that information at the point of purchase helping the consumer make a more informed purchase decision. e-shoppers really appreciate the capability to Zoom into the merchandise in detail and often rely on it to make the final purchase."
Giving the e-shopper the customer experience they have at the store means that e-retailers can sell more expensive products on-line. "The ability to see products in rich detail makes trying to sell a $500 dress, doable," said Cynthia Hollen, president, Web consulting firm Knowledge Strategies. In a study of apparel-oriented Web sites analysts discovered that 55 per cent of the respondents plan to offer Zoom technology within two years, making it the most wanted feature.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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