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Strategies & Market Trends : Position Trading Forum -- Ignore unavailable to you. Want to Upgrade?

To: CRay33 who wrote (3786)	10/20/1998 1:47:00 PM
From: Rock_nj	Respond to of 7247

***Cybershop's(CYSP) new web site to open Tuesday 10/27**, to be one of the largest electronic retailers on the net, stock up over 40% @ $4 1/4. This one should be good for at least a point or two by Tuesday. Consumers have gotten used to buying books, clothes and computers online, and now a major East Coast chain is betting that they're ready for other home electronics. Tops Appliance City Inc., along with online retailer CyberShop International Inc. (Nasdaq:CYSP), will launch electronics.net October 27, offering everything from camcorders to refrigerators. CyberShop will be handling the e-commerce end of the joint venture, while Tops, which runs seven stores in the New York-area, will handle procurement. CyberShop CEO Jeff Tauber said that the company decided to get into the market because home electronics was proving to be one of the most popular sections of his online store. While some of the items featured in electronics.net are available elsewhere online -- most notably computers -- Tauber said the companies thought there was a need for a one-stop shop that could dominate the market in the same way that the bricks-and-mortar electronics stores do. "It was clear to us the customer was looking for a category killer -- one site, deep with products, and specializing in a given category," he said. Consumer electronics and appliances are a $64 billion market in the real world, and Tauber says the demographic the stores attract is particularly suited to the Web. "You've got the perfect demographic -- men aged 24 to 39, who are into gadgets and computers," he said. As in computers, consumers looking for electronics are primarily feature-driven, said Jupiter Communications analyst Nicole Vanderbilt. Electronics.net allows users to create feature comparison charts for various products, and offers a glossary to explain techno terms. And while some of the real world stores are struggling, there's not that much competition online. Two of the biggest names in consumer electronics, Best Buy and Circuit City, do not currently offer online sales. Consumer gap online But Electronics.net isn't the only company to see the gap. A new online venture, 800.com, recently launched its own consumer electronics shopping site. "It's untapped in the online world and it appeals to a strong demographic," said Vanderbilt. "[800.com] is online only, which comes with its own set of hurdles. But it does free them to be nimble. On the other hand, the buying power and relationships that Tops has will be helpful." Electronics.net will not offer products cheaper than traditional stores, but it will honor the retail mantra of "we'll meet the lowest price." And Tauber said that shipping costs may be offset by the fact that purchases won't require sales tax, except for New Jersey residents. But some consumers may not realize that they'll have the same freedom to haggle that they would in a real-world store, Vanderbilt said. "A consumer that does a couple of searches at electronics retailers may not realize that listed price isn't necessarily definitive," she said.