According to the experts, the two business structures that will thrive in the next few years are price-fixed stores and online retailers. Apparently Tesco, Asda and Wetherspoons, to name just a few, have gone through a mindset revamp and it is incredible to think that these commercial giants are learning from small businesses like Poundland (who are opening up 35 new outlets this year - not bad for a company dreamt up on the back of a cigarette packet).

As was ever thus, consumers drive the market when hard times hit and this year they have two additional tools with which to keep us on our toes: the growing use of these price-fixed stores by all income brackets and the internet search engine. I think all business, big or small, will be held captive to both the growing use of the price fixed stores and the developing skills of consumers to research like a journalist, i.e. WHAT is the best price; WHERE is it available; HOW can I access it in the quickest possible way.

Along with the financial papers weighing down my desk, is a book I picked up recently - It's Not How Good You Are, It's How Good You Want To Be by Paul Arden (not a book you read, more one you skim through) and one inclusion stayed with me: If you get stuck, draw with a different pen. The news that Tesco et al are introducing £1 products to make sure they are not overwhelmed by their price-fixed rivals is a clear indication that most of us now have to "draw with a different pen".

My different pen is doing more of what works for us and less of what doesn't in online business and I will draw up our 2009 plan from those two columns.
What doesn't work is to assume that customers don't research online or that they'll continue to visit your website if you don't update it. It's also worth remembering that they can identify the most affordable products by simply putting them into a search engine.

What works is to do continual research on what competitors are offering, to be more open to working collaborations, and to be prepared to match a competitor's price if alerted - because some profit is better than no profit. And never consider that the sale is complete until the customer is satisfied.

All the research from the end-of-year financial studies tells us that online shopping rose by 16% while terrestrial trade struggled. This will not affect all companies of course, as many retailers have both a presence in the high street and online. For showroom retailers who do not have an internet presence, I am genuinely astonished and wonder why they would ignore the increasing online revenue potential.

Six years ago, a marketing director from a very reputable appliance company who told me that they had instigated their second research study since the inception of the internet in order to discover the sum total that people would spend on line and it had risen from £15 per product to £500 per product in the years between the two studies. Anecdotal evidence since suggests that this sum has risen three fold.

Why are more and more consumers spending their money with online retailers? The obvious answer is the convenience but more significant is the growing consumer expertise and the utilisation of search engines to determine the best prices available on the market.

I can already hear the shouts of dissent from certain retailers, who for many years have built up a wealth of knowledge about the products they sell and who have always maintained that the internet has spawned lots of amateurs out to make a quick buck. I happen to agree with that assessment but the harsh reality is that the majority of consumers only compare costs and proceed full steam ahead with anyone offering the best price.

However, I believe there is a growing number who want more for the money they spend and this is where those of us who have experience in the industry, combined with good product knowledge, can distinguish their online business from the amateurs.

Selling over the internet also broadens the geographical customer base and although your showroom business may previously have been targeted to a limited radius, the internet allows you to go much further afield. Operating solely from a showroom, the majority of our clients would never have found me or indeed shopped with me.

As an E-retailer I have to operate in a totally different way than high street retailers in that, if a customer provides evidence that a rival company is offering my products cheaper, I have to endeavor to match the price in an instant. Take the internet out of the equation and the high street retailer would benefit in more ways than one - just in practical terms, they only have to match the prices of local competitors while I have to compete with the thousands of businesses available to website visitors at the click of a button.

Unfortunately for both the high street and E-retailers - research shows that customers increasingly "reconnaissance shop" i.e. visit a shop, then go home and put the details of a product into a search engine, knowing that it will bring up a cheaper price if they buy it online. So now the pressure is on the high street retailer to do the same and to be present when the 'reconnaissance shopper' gets home.

Perhaps some innovation is called for. Back to our list of what works for us: to offer one good example, a well known kitchen manufacturer has had the foresight to see the real worth of the internet by seeking to work in collaboration to benefit us both as well as our website visitors. I applaud them for doing so and consider them pioneers in recognising that the internet is just as relevant to their future as terrestrial trade is.

This system succeeds because all component bodies benefit - it helps the manufacturer reach a wider market; the internet buyer is able to access quality products at affordable prices, delivered direct to their door and they trust that we will only collaborate with reputable suppliers so if issues occur - they know we will put it right. If we separated these components: the manufacturer does not have to spend a large budget to reach online customers as our already established website serves this purpose. For our part we have no need for a large warehouse to stock items - the manufacturer does that.

I imagine that the retail giants never gave the fixed-price discount stores a moment's thought two years ago and yet here they are two years later having to consider them serious rivals. However, I still struggle with keeping one eye on future technology because who knows what new forum will eventually pop up to make internet shopping obsolete. Until it does though I keep my fingers crossed (well, not my fingers, they are usually glued to this keyboard) and hope I don't adopt a siege mentality should the buying trend change. I hope I will always remember to 'draw with a different pen'.

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