Ferrit Is No More

Ferrit

Ferrit.co.nz will shut its doors on Wednesday afternoon. Theoretically meant to be New Zealand’s Amazon.com, backed by New Zealand’s mostly-monopoly telecommunications provider Telecom, it instead never really got off the ground.

Some will blame the economic environment, while others might say that charging large commissions on all sales from day one is not the ideal way to kick off an online selling community, especially when the majority of your partners already have their own web presence.

9 Replies to “Ferrit Is No More”

  1. Maybe Telecom will focus on trying to make broadband faster and cheaper rather than invest in businesses that they have absolutely no understanding of. The wasted resource and money in this project makes me weep. I’ll look in interest at the next Telecom annual report, to see what the write down is, but my guess is they have blown 10’s of millions on this venture. The big winner will be the advertising agencies, who convinced them that TVC’s were the way to get traffic and sales. Just like all those Trade Me TV commercials that they did…oh wait, they didn’t do any.

    1. I couldn’t possibly comment on how much they spent on back-end (re)development with Datacom, but I’m positive that it would pale in comparison to the TVC spend.

      I have to also say that Glen Drake (the Ferrit ad guy) is a friend, and a very nice chap, despite the portrayal in the ads 😀

  2. It is a quite sad day for NZ retailing, since the biggest project so far failed. The closure was expected though; not even Telecom can run a business at such a loss for more than 2 years.

  3. Ferrit was neither an efficient allocation of resources or good. I never thought it would live as long as it did but 3 years seems to be the pride period in admitting failure of business ventures. Does anybody feel we’re not being served adequately by existing outlets online in NZ?

  4. I never understand why some businesss look at a succesful company making zillions of dollars, a world leader like amazon and say ok lets just copy what they have done it works! they have to try and do there own thing ferrit would have worked if a. they had used another name! and b. copied amazon. Trademe is similiar except they get away with it because they use the smoke of “look at what we are worth” if they would only look at ebay and copy what they have done. There is nothing wrong with copying forget pride and any other stuff business is there for one reason and one reason only Profit

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