UKNM: RE: Brands Selling Direct Online

[John Braithwaite]

> So to summarise, the issues are as follows:

>

> Brands feel they can not retail direct over the web becuase they risk

> pissing off the retailer.  They can't link their web sites to major

> retailers web sites becuase, they're bound to miss some of

> their suppliers

> and they'll then be cheesed off.

>

> Why don't the brands just go and ask (ok, pay i guess??)

> kelkoo, or one of

> the other comparaitive shopping engines to build a special comparative

> shopping engine, just foir their brand and build a site

> around this?  Seems

> as though this would not favour a particular retailer, would

> push sales and

> monetise their sites?

>

> I've got a terrible hangover, so am not in a great state to be self

> critical, but what does the list think aout the above idea?

>

> T


No I don't think this is a good idea - no brand wants to be seen as a bulk

flogging discounter. There is a very fine line for many brands (especially

clothing manufacturers) in selling large quantities without diluting the

premium brand status. Levi's got it wrong, Nike is desperately trying to

stop it happening and Tommy Hilfiger could well be next for the chop. So

what is the 'chop' and what is the solution?


For the clothing market - the 'chop' is brands that are worn by the

trend-setters (16-25 yr olds with disposables) that either end up being worn

by the juniors (pre-teens) or, even worse, parents. This can either be done

by heavy discounting or, in some cases, by pushing too much product into a

marketplace. The brands lose credibility and fall out of favour with the

'trend setters' and end up being unwanted (however good the product).


The solution is actually along the lines of the NEW boo.com (yes, I am

prepared to be flamed) and others: sell it through a fashionable shopping

site and, although you think it's being shipped from one location - the

orders are actually sent from the factory. The brand keeps the credibility,

boo.com takes a nice cut and the 'retailer' as it currently exists is just

one step too many. This gives the brand more control and access to it's own

marketplace and high returns.


Will it work? Anyone?



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