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Record 1 of 1 in CBCA Fulltext Business 7/99 - 1/01

TI:  Roots launches its brand online: company betting label's culture will translate on Net
AU:  Olijnyk-Zena
PN:  Financial-Post-National-Post
SO:  Financial Post (National Post), v.2(26) N 25'99 pg C3.
Illustrations
FA:  Fulltext: 612 words
IS:  1486-8008
CI:  Roots-Canada-Ltd
CZ:  Roots Canada Ltd
PT:  News-article
SF:  Illustrations
PD:  991125  
PY:  1999
AN:  4714034
LN:  SHORT
FT:  Not everyone wading into the wild world of Internet retailing will make it,
but the "boys" who co-founded Roots Canada say they have the magic
ingredients to click with Internet shoppers. 

"We're just perfect for the Internet, because we're a lifestyle brand with
a culture behind it, and that's more than half the battle," said Michael
Budman, who along with Don Green, founded Roots in 1973. He said the
biggest challenge will be to let the public know that Roots.com,
officially launched yesterday, exists. 

But that is still no small task, given the number of retailers trying to
get the attention of those cruising the Internet this holiday season -- a
period that is being seen as make or break for those entering the world of
e-commerce. 

"Marketing and getting exposure is all important," said John Wetmore, chief
executive of IBM Canada, which worked with Roots to develop the site. "But
Roots has a strong presence, which will help enormously." 

More than 200 different styles of athletic wear, leather goods, casual
clothing and accessories for men, women, youth and children will be
available online. It's a "carefully edited assortment" of what is
available in Roots' 160 stores (125 of them in Canada, with 10 in the
United States and 25 in Asia). 

Mr. Budman and Mr. Green said the e-commerce site is now only available in
Canada, but should expand to the United States before Christmas,
"hopefully within the next three weeks." It will go worldwide in the first
half of next year, said Mr. Budman. 

Mr. Green noted that Roots' sizing system, much of it in the easier-to-fit
small, medium and large system and universally known European shoe sizes,
will help build confidence with customers. In addition, since so many
Roots customers are loyal to the brand, both Mr. Budman and Mr. Green say
that most "know their size, whether they're buying in our stores or on the
Internet." 

Mr. Budman also points out that since Roots represents a "lifestyle" more
than just a product, it's perfectly suited to the Internet, where having a
strong brand image is all important. 

"Roots definitely has some strong advantages," said retail consultant Len
Kubas. "While it's a brand that is based in Canada, it has strong ties
with customers outside the country." 

Richard Talbot, another retail analyst, agreed that Roots is getting into
the Internet game with a lot of advantages, and should attract a lot of
attention from Web users. 

"But what it comes down to for all retailers is how well they can deliver
on their promises. If you order online, the goods have to come quickly and
there must be no problems with paying." 

Boston Consulting Group projects that the number of online holiday shoppers
will triple to 23 million this year, compared with 1998. Most consumers
will be making their first online purchases this Christmas. And the
group's research says that "the first purchase is a key moment of truth,"
says David Pecaut, senior vice-president at Boston Consulting. 

"There is a direct link between a satisfying first purchase and how much
consumers spend online," he said. "With so many first-time purchases
happening in the next six weeks, it is critical that online retailers
deliver a flawless end-to-end experience." 

Based on its survey of Internet users, Boston Consulting predicts that 29%
of those online will make a purchase, compared with 12% last year. 

Copyright 1999, Financial Post from National Post (formerly the Financial
Post Company). All rights reserved.

             
FC:  Copyright 2000. All rights reserved by original publisher and copyright
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YC:  1999
UD:  991100