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After another quarterly loss in web sales, Live Current Media Inc. is shaking up its e-commerce strategy.
Live Current will begin to transition Perfume.com from a discount fragrance site into one focused on online luxury buyers. The transition will be complete by September and include a complete web site makeover, the company says. “The online discount perfume business is highly competitive, which causes net margins to be subject to downward pressure,” the company said in a recently filed quarterly report with the U.S. Securities & Exchange Commission. “There are over 1,000 web sites offering discount perfume and the typical consumer who buys from any of these sites is predominantly price-driven and without site loyalty.”
The revised web site will feature pricing more in line with manufacturer’s suggested pricing and deeper product content, the company says. “Selling at full manufacturer's suggested retail price has been proven by several very successful web sites such as Net-a-Porter.com,” the company says.
Live Current Media is making over Perfume.com in an attempt to reverse declining web sales. For the first quarter ended March 31, Live Current reported:
- A decrease in web sales of 49.2% to C$873,959 (US$831,154) from C$1.72 million (US$1.64 million) in the first quarter of 2009.
- A decline in total sales, which also includes advertising, sponsorship and miscellaneous revenue, of 48.1% to C$908,234(US$868,292) from C$1.75 million (US$1.66 million).
- Net income was C$84,078 (US$79,960) compared with a net loss of C$916,408(US$876,107) in the first quarter of 2009.