|
Cites editorial asking vendors about direct-to-consumer as 'a wave of the future'
- Home Accents Today, 9/23/2008 10:18:00 AM
In case some of you missed it, there was a wonderful column in the August issue of Home Accents Today by Jenny Heinzen York.
The subject was the decision by Moe's Home Collection to open retail stores. The editorial discussed this direct-to-consumer approach by a vendor, along with direct-to-consumer Web sites operated by vendors. She challenged the industry to answer the question as to whether these kinds of efforts are the wave of the future and how can independents compete with these efforts.
First, even though I don't really know him, I must say I think Moe Samieian is a brilliant guy. He recognizes that consumer's spending habits are changing, he understands marketing, and he's not afraid to challenge the status quo. These are the type of entrepreneurs who, later in life, more times than not are offered the title of visionary.
Let's examine the root causes of why vendors and retailers are naturally in conflict over the consumer's dollars.
What vendors want is to see their lines their entire lines properly displayed and offered to the public. Very few retailers are ever willing to do this. The vast majority of them cherry-pick a line, and buy a relatively small percentage of the SKUs offered, thereby ensuring the vendor's products will never reach their potential in that area.
Retailers, on the other hand, often feel that it is fundamentally wrong for vendors to sell directly to the public that consumers are their piece of the action.
Unfortunately, this relationship between vendors and retailers ignores two critical issues in today's world. Consumer buying habits are changing radically, and branding is more important than ever.
|
|
Therefore, at the end of the day, if this industry doesn't give people what they want, in the way they want it, then everybody fails to get the business we all so richly deserve.
So, why is it that history automatically sets us up to be opponents in getting merchandise into the hands of consumers instead of uniting together to give all of us maximum profitability?
The two underlying reasons for this are old fashioned turf wars and the basic human defense mechanism to resist change.
I have long been on record, very publicly, of supporting independent retailers. I have never been a fan of big box stores, not because I ignore the fact they can move large quantities of product, but because it is so difficult to make a profit selling to them and they always dramatically shorten the life cycle of any product.
Unfortunately, there is no denying the fact that independent stores as a category are starting to dwindle in numbers, and it is increasingly difficult for many of them to make an acceptable profit for their owners.
So, what's the answer to Jenny's question? How can independent retailers survive moving into the future?
I would ask you to consider a radical change in thinking. I would ask you to take a deep breath, and consider what possibilities could await us if we all worked together as partners, instead of being fearful of each other as competitors.
This industry has long been recognized as one of the most creative out there, but that compliment has pretty much always been directed toward product development. Frankly, we have never been seen as a cutting-edge or particularly savvy group when it comes to technology or creative business models.
Let's change that. Let's focus that creativity on working together to be more successful.
FOR THE FULL ARTICLE GO HERE |
|
