RE: UKNM: retail conflicts

[Robin Edwards]

Hi there


I personally believe that the retailer will promote whatever sells well and

gives them high margins per square foot of floor space and has a low rate of

return, regardless of the competition - even from the brand selling direct.

If the situation changes, they will drop the brand like a hot potato unless

it acts as an inducement into the store, such as toy shops that use

ridiculously expensive electric toy cars that they won't sell to bring in

the public who may go on to buy something they can actually afford.


The brand has a similar reasoning - if selling direct means they make more

money in the long run then the retailers can rot in hell as far as they are

concerned. If it works t'other way then they'll join the ranks of the, "that

Internet thing - bag of shite," brigade and pull their direct operations.


IMHO


Robin


PS if anyone wants to buy a ridiculously expensive electric toy Subaru

Impreza Turbo for my 7 month old son, Dylan, his dad would be very

appreciative...


--

Robin Edwards

Clockworx

T: +44 1543 252370           F: +44 1543 420761

E:

robinclockworx [dot] co [dot] uk

   W: http://www.clockworx.com/ W2:

http://www.shopworx.net/


> -----Original Message-----

>

From: ownerchinwag [dot] com [ownerchinwag [dot] com]On">mailto:ownerchinwag [dot] com]On Behalf Of Tim Moore

> Sent: Thursday, November 16, 2000 3:13 PM

> To: Uk-Netmarketing (E-mail)

> Subject: UKNM: retail conflicts

>

>

> hi list

>

> a chestnut which may not yet have been cracked:

>

> consumer retail brands rely on the good will of retailers to sell thier

> stock for them, right.   so if the retail brand decides to undercut the

> rretailer, say by selling directly on the web, then the brand in question

> gts demoted to the deepest, darkest corner of the retailers store...or

> delisted all together.

>

> it may be a dumb question, but this being the the case, how do the large

> consumer brands justify thier consumer facing web presences.  do they:

> monetise thier presences in some way; use thier web presence to

> reduce cost;

> justify the web budget by scarng the ceo to appove it because if

> he dosen't

> then they'll look like stoneage cheapskates?

>

> i'll be looking into this more closely, but wondered if anyone had any

> thoughts on the subject, or had come across any particularly bright ideas?

>

> cheers

>

> tim

>

>

> Tim Moore

> Senior Account Manager

> Startle Digital Marketing

> Tel: +44 (0) 20 7341 0965

> Fax: +44 (0) 20 7341 0888

>

> www.startledigitalmarketing.com



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