The Retail Ecosystem Must Survive

Sounds very interesting, Dave. Unfortunately we'll be fiinshing a project and transitioning to another one during GDC, but hopefully we'll be able to snag an audio version of it, or maybe even see it up online? Good luck with the presentation!

Cameron is due in February and the nursery still needs aneothr coat of paint or two to be finished. Then we'll probably let it sit for a week or so to cure, and I'll start around 32-33 weeks setting it up.

Perry,

Thanks for asking! This is a question I’m asked often and have posts in the queue that address my response to showrooming in more detail, but here’s a snapshot:

Manufacturers must choose their retail partners wisely and maintain a close-knit partnership to instigate a pricing policy that brings parity to the marketplace.
Essentially, manufacturers should make sure that the advertised prices for their products is close to or exactly the same on ALL channels of retail (online and offline). When pricing is at parity, the consumer will almost always buy from the purveyor who can deliver the greatest amount of value with the least amount of risk – particularly with big-ticket items.

However, and in order for this to work, these manufacturers will also need to step up their game when it comes to pursuing and stopping retailers who violate the pricing policy or rogue websites who scrape their content or digital assets and use it without authorization. Conclusively, the manufacturer, brick-and-mortar and online retailers must become integrated with one another with the same purpose – delivering exceptional consumer value.

I’ll be speaking on this topic at the upcoming High Point Market, on Tuesday the 16th, on the 11th floor, ballroom B of the Green wing in the IHFC.

Barry

Barry,

What are your thoughts on "showrooming?" How would you propose that manufacturers and retailers work together so that the store is not just a place where the consumer can see the product in person and then purchase it elsewhere?

my thought is different SKU numbers that can link back to the retailer's own website and not to google/amazon. Or give the online merchants different sku numbers.

If manufacturers and importers want to sell to retailers, they must have a vested interest in keeping them alive. Otherwise, furniture stores will go the way of Border's books, Circuit City and others.

Your take?

Jon, sorry about that, I should have clarified that I was referring to the consumers who are actively seeking a home decor product (not 90% of US households). 90% of those in the buying process will start this process through online channels.

Consumers aren't starting their buying process by going from store to store, in fact they now consider this as a chore to be endured. Nowadays, she gets the kids to bed, puts her feet up, and pulls out her iPad or laptop to shop online. Buyer behavior has changed to a primarily Internet-based marketplace because of the vast amounts of information and content available online. And, if your products aren't in front of her where she's shopping - online - you may never become relevant to fulfilling her needs.

According to the US Census Bureau, 77% of US households had a computer in 2010 (most recent data available) and 44% of households had access to the internet. How is it possible, then, that "90% of products are shopped online first?"

What do you mean by "the change in buyer behavior to an online shopping majority?"