RE: UKNM: retail conflicts

[Robin Edwards]

Nike and Levis in the states. Don't know the details but they both went into

direct selling. I think Nike *may* have offered unique products rather then

competing, but I could be completely wrong on that one. Diesel was selling

direct in the UK too IIRC. They may or may not have been undercutting the

retailers, but it is clearly quite compelling to buy things straight from

Nike, even at the same price (c.f. Nike and Levis' retail stores).


Another interesting issue, Stateside but coming over here too, is the outlet

mall, where the manufacturers offer discounts on goods through their own

branded stores. Here the conflict would appear to be massive. In theory a

lot of the goods on offer are factory seconds but you'd be hard pushed to

tell. So next logical step would be the online outlet mall.


Doh, Robin you've just given away another great business idea. Although if

it is a good idea you can be sure someone somewhere has already done it.


Anyway, for powerful brands the retailers might be content (ish) to live

with the fact that they have location on their side and make the sale to the

customer who is on foot.


And we haven't even begun to talk about customer service. Again, in theory,

the manufacturers should have the edge here due to the higher margins

reducing the need to cut cost of sale down to the bone. In practice many of

us already pay more for some goods because we like the bigger picture

shopping experience. I, for example, couldn't be bothered saving a few

percent on something that I normally buy elsewhere if it meant extra hassle

that can come as a result of poor fulfilment.


R


--

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: Tuesday, November 21, 2000 12:13 PM

>

To: uknmchinwag [dot] com

> Subject: RE: UKNM: retail conflicts

>

>

> You may be right, but can you think of any examples.

>

> I suspect that retailers would act against a brand which was trying to

> undercut it and sell direct to the consumers.

>

> T



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