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Harvey's GST call gets little love from consumers

10 January 2011, 16:21 PM | Source: SBS, Shalailah Medhora

 It's been described as the biggest PR mistake of the year, despite the fact it's only January.

Harvey's GST call gets little love from consumers

Harvey's GST call gets little love from consumers

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The Goliath of Australian retail, Gerry Harvey, took aim at the relatively small (but growing) online retail sector, calling for the government to increase regulation and decrease the GST threshold for goods bought online.

The backlash, from the online community at least, was instant.

"Donate to #gerryharvey he is down to his last half billion," @vg3p quipped over the social media site Twitter.

"Here's 50c, call someone who cares," @Issleonara tweeted to Gerry Harvey.

Others speculated that the lack of new media savvy would lead to the demise of the mega-retailer.

"I can't help thinking this is the beginning of the end for the #GerryHarvey empire. He's normally so good at media manipulation as well," @jonmcconks wrote.

Many users of social media pledged to boycott Harvey's business.

At the time this blog was written, the "Boycott Harvey Norman" page on Facebook had just over 1,200 members. Numerous Twitter users made the same pledge.

News of Harvey's calls for online regulation, and the ensuing consumer backlash even made it to Taiwan's NMA group – the animators responsible for satirising Tiger Woods and disgraced NRL player Joel Monaghan.

Opponents of Harvey were vociferous even outside the cyber world, where support for online shopping would presumably be much greater.

Consumers interviewed by a number of TV networks were overwhelming against Gerry Harvey's calls, saying traditional retailers had had it too good for too long.

Many expressed concern for Aussie jobs, but said passing on costs to consumers was not the way to protect the industry.

The near-instant backlash, and the amount of criticism levelled at Harvey should have been enough to alert the mogul to just how wrong he is about online retail.

Seems that if Harvey continues to refuse to adapt to what was once a new world – and is now just part of everyday life – it may end up affecting his company's bottom dollar.
 

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Your Comments

Bring it on

Tony - from Melbourne, 1 year

GST ?? 10% verses 100%-200% markup ... mmmm. Never have shopped at a hardly normals and never will. Technology is always a generation behind. Premium prices. Only the ones too lazy to shop around will walk in to a Harvey Normans or Myers Gerry and the gang your exit is here. 'Go Harvey' Please ... Go !!!

Harvey is a dick

James Dean - from Adelaide, 1 year

Moderated ***** Harvey greedy piece of**** Moderated

cry me a river

paul - from outbach south oz, 1 year

poor gerry harvey, GET A GRIP, the rich get rich and the norm go on line, cry me a river, Maybe we should all send him donations so he can cope with the stress of loseing a couple of bucks. Dont tell me he,s an aussie, If he is, send him somewhere else, your a bloomin disgrace.

Consumer

Roy - from Perth, 1 year

Hi Gerry Get real your stores lack customer service, your staff only want to sell what they have to with the greatest GP in them, and the most they will make from commissions,kickbacks, etc and all the **** I have seen it working in the same industry It would appear that , staff spend more time with what they will get in commissions thent what product is best for you. So I do NOT feel sorry for you the sooner Havery Norman goes out of business the happier I will feel

He is right!

I. Opine - from Melbourne, 1 year

The issue wasn't online shopping, but the <$1000 GST-free threshold. It affects more than the big boys as a lot of small retailers are expressing deep concern also. Additionally, the threshold is open to abuse at certain overseas outlets, as the stated cost is open to being understated. There are many other issues they should address and I hope the changed shopping habits will bring them about.

That's YES from me.

I. Opine - from Melbourne, 1 year

After due consideration, I must say that I think he is right. I didn't initially and was pleased the retailers were hurting. They had much to answer for in lack of prompt, courteous service and competitive pricing. The ferocious responses, however, have been over the top. Let them bring in the tax and adjust their new business models according to the new paradigm. We will all benefit from greater competition. There are new players now and only the best will last. Let them play on!

Failure to adapt to change...

aussiebear - from Sydney, 1 year

I notice companies (no matter the industry or country), that complain the most about Internet based alternatives killing their business; are often the same ones who simply won't understand and see the Internet as an opportunity. All they see is a threat to their profits and lobbying Govts to change the Laws to sustain THEIR way of doing business. This behaviour is going to seriously hurt them in the long run. You don't punish those who are your customers! You provide a better service/product.

Poor Gerry

barrym - from Newcastle, 1 year

A pity he didn't show some compassion for all the small retailers he's put out of business. What a hippocrit!