GRTU worried e-mall project will harm small businesses

Anthony Cassar

Sep 18th 2010, 21:05

@ TO ALL WHO ARE SAYING BUSINESSES SHOULD NOT WAIT FOR THE GOVERMENT TO FUND THE ECOMMERCE SITES

Today there are many Maltese business offering their products online, some which come to mind include; Marks & Spencer's Wine Shop, CrossCraft, Astral, Sound Machine,Fjuri.com.mt, ilovebooks.com.mt, ilovecakes.com.mt, HandyMan Centrem camilleri Catering just to name a few. These companies did not wait for the giverment to fund their projects! The invested in setting up an online eCommerce sites, as well as its ongoing Marketing.

Moreover in the coming months at least one other local private company will also be launching eMall targeted at Maltese businesses whishing to sell their products online!

w. Cauchi

Sep 18th 2010, 19:39

@ Hugh Morris

I tend to agree with you on this, E-malls are more like a shopping mall than a showroom, but does this change things one bit.

The government is paying for the setup, running and advertising costs of this particular ''shopping mall'' whilst the rest have to fork out these hugh expences themselves.

Does that make it an even playing field. No.

In fact the other e-malls have to charge more to the online shops for the same service, as high costs such as advertising have to be covered from somewhere.

Hugh Morris

Sep 18th 2010, 16:58

@w. Cauchi

I disagree that its like running a showroom. A showroom is usually run by a company who is selling its wares. On the other hand this is like running a shopping arcade and the setup and maintenance costs of the online shop are simply the equivalent to the lease and upkeep of its physical counterpart. The most to benefit from the advertising campaign are the actuall shops who are on the eMall, in the form of the electronic equivalent of passing trade.

Alfred Farrugia

Sep 18th 2010, 15:44

Why has the GRTU not thought of a similar project for its own members, if it does not already have one? Why do small businesses have to rely on government support all the time if they consider themselves as the motor or engine of economic growth?

w. Cauchi

Sep 18th 2010, 15:27

Reply to Chris Degiorgio.

Operating a Web Mall is like running a big showroom, and i have never heard of any government that issued a tender to eventually pay the setup, running costs and advertising of a showroom.

If all the other sites have to pay all these enormous costs themselves than it is far from an even playing field and only one will eventutally survive and effectively have a monoply and than charge retailers whatever it wants.

I am not against the idea of a web mall because as you said millions are being spent on shopping online abroad but the not by creating a monopoly but by issuing micro credits to all those who present plans of a web mall capable of doing it's job well.

Peter Sant

Sep 18th 2010, 15:22

I don't get it - this article/ statement from GRTU does not make sense!

It states that in principle the union is not against the project BUT they believe it will harm small business???!! That's a contradiction... there is nothing to explain WHY the project will harm small businesses.

Do they think we still live in annu xejn xejn where people are afraid of shopping online? If Maltese companies don't get up to speed with the web then the end is on the cards my friends!

Anything that gets more Maltese businesses selling online is good for the country - stop the gemgem and the humbug GRTU!

Hugh Morris

Sep 18th 2010, 15:22

@Kevin Farrugia
As far as I know everyone can submit a bid for a public tender. A more level playing field than that....

Kenneth Borg

Sep 18th 2010, 15:17

@ Baldacchino
Sounds like a case of sour grapes to me :)

Hugh Morris

Sep 18th 2010, 15:16

@ John Vella
What exorbitant rates are you talking about? a 250euro startup fee and an annual fee of 232euro exc VAT?
Are you serious? Did you ever try placing an advert on a local newspaper or magazine?

The way i see it - this initiative will open a vital trade channel for local businesses which has, till now been sorely missing.
Latest MCA statistics show that virtually half the Maltese population buys stuff online and only a couple of % of those from local online sites!
Well done Austin Gatt!

Alexia Sant

Sep 18th 2010, 15:15

@ Kevin Baldacchino
I have set up an eShop on TrolleyMania and it cost EUR 250 not EUR 500.
Seems to me that you do not know what you are talking about.

Kevin Baldacchino

Sep 18th 2010, 14:44

There have been various previous attempts to set up similar web sites locally in the past and they have all to a certain extent failed.

One example is www.maltaexpo.com, which incidentally was developed by the same company in conjunction with a local bank.

The difference in this case is that this project is funded with public money and for this reason, one would expect more transparency in the process.

Firstly, if the project is funded with a handsome amount of public money given to one contractor, why are interested merchants like me still being asked to pay an additional 500 euros directly to the contractor (Alert Communications) itself to set up on Trolley Mania?

Secondly, why was the contractor given discretion on how to use marketing funds for the project? If you look at the leaflet which was delivered in your letterbox, you will notice that this is actually promoting the contractor itself.

It seem GRTU is mostly concerned about the relationship with the contractor and use of public funds, rather than the project itself.

John Vella

Sep 18th 2010, 13:46

The rates quoted are exhorbitant, and are therefore out of reach for small businesses. There already are sites that cater for small maltese merchants, and some, like hanut.com , are completely free for maltese merchants.

Andrew Filletti

Sep 18th 2010, 13:40

I spend hundreds if not thousands of Euros a year shopping online (from companies abroad).

IT SEEMS GRTU DOES NOT WANT MY MONEY!!!!!

Chris Degiorgio

Sep 18th 2010, 13:38

GRTU should be praising Austin Gatt and Lawrence Gonzi on this initiative!!!

karm cassar

Sep 18th 2010, 10:55

I remember the GRTU against Vat and Cash registers.

Pierre Farrugia

Sep 18th 2010, 08:23

What on earth is the GRTU saying? Did they issue a press statement just to say "from what we have seen till now, we seriously doubt....".
What have you seen?
What are you trying to say?
Spit it out or say nothing please. There are enough of these hints and innuendos in the local press as it is.

Charles Micallef

Sep 18th 2010, 07:20

Every year the Union complains about its members losing business, a lot of it because people are now shopping on the Internet.

So along comes a project to encourage Maltese companies to sell their products online and set up a store at minimal cost (around EUR 250, according to the brochure on the eMall site) and GRTU complains!

Unbelievable!

Ramon Casha

Sep 18th 2010, 06:19

The idea is, in principle, a good one. One can look at eBay to see how it's done - many retailers use it as their online store.

C.Sammut

Sep 17th 2010, 22:43

Well we'll probably remain the only country in the world from where I can't shop online..

Kevin Farrugia

Sep 17th 2010, 21:56

I also wish to add that in my opinion, this system is just not fair for other payment gateways and the possible competitors of a system like this. Advert money should be given to all the competitors too so that everyone will be playing in the same level field.

Clive Bowen

Sep 17th 2010, 21:54

Wake up Malta!! It is not the half-baked Government initiatives that line the pockets of a few or the oft claimed advantages of large companies that threaten businesses; it is the encroachment of European companies that are making significant inroads into the retail marketplace in Malta.
Amazon.co.uk will deliver virtually anything to Malta far cheaper than it can be purchased here. They offer the latest products, better customer service and real money back guarantees.
Play.com will now deliver to Malta free of charge and it is possible to purchase goods like Levi's from Poland. Personally, I only buy everyday consumables here in Malta (and most of these come from Italian and German supermarkets) , everything else I purchase from abroad.

So, what are Maltese business owners doing? Waiting for the Government to offer them a 'Mickey Mouse' solution. Whilst you remain with your heads in the sand, your businesses will slip down the plughole!.

For goodness sake put your hands in your pockets and pay for your own websites like other European companies have had to do.

w. Cauchi

Sep 17th 2010, 21:24

what i cannot understand is why public funds are be used to pay the advertising costs of just one company. After all this is a private company.
Isn't this infact creating a monopoly against which other internet sales companies cannot possibly compete.
Isn't it against European Law for the government to use it's funds to help one company and not all others
What does the European Commission in Malta has to say about this.

paul azzopardi

Sep 17th 2010, 21:05

I suggest that Mr Vince Farrugia et al should refer to Spencer Johnson`s bestseller, "Who moved my cheese?" or if they do not want a hard copy they can google it for free!

A.Busuttil

Sep 17th 2010, 20:55

Malta voted for LIBERLASATION of the market when we voted for EU.
GRTU they are outdated and have an island mentality, avoiding competion
Go for it Austin

Mike Farrugia

Sep 17th 2010, 20:27

I have no idea who is predicting the future most wisely. The govt had promised in 1992 that "Karmena li tbiegh il gbejniet" was not going to be asked to register with the VAT dept. Today, is anyone exempt? ....and the GRTU. Do you remember the crusade against the smoking ban in restaurants? Who will be proved right 5 years from now?