Turbotodd

Ruminations on tech, the digital media, and some golf thrown in for good measure.

Posts Tagged ‘showrooming

Talk To The Mannequin Middleman

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Middlemen have gotten a pretty bad wrap since the Internet came along.

First, it was the travel agents, who were one of the first to be “disintermediated” by sites like Expedia, Orbitz, etc. Why hire a person to do what a computer and network could do?

Although it turns out it wasn’t quite that easy, as we later discovered, and nearly 20 years later there are still travel agents, but they’ve evolved and often moved up the value stack in terms of their offerings. (As an example, whenever I book a scuba diving trip, I typically now use an exclusive provider of scuba vacation travel, and they’ve served me quite well…although, sigh, it’s been far too long since I went diving!)

At IBM, we’re only supposed to employ our American Express travel agents when we’re traveling overseas.  I, personally, don’t mind using our Online Travel Reservation system for planning my travel, but that Web-based system has never been the same as talking to a really good Amex travel agent, and it certainly has never made me laugh.

So this story in The New York Times caught my eye, which explains how e-commerce companies are “bypassing” the middlemen in a variety of e-commerce verticals.

From eyeglasses to office supplies to bedding to nail polish to shaving supplies, there are host of “smarter commerce” e-commerce ventures popping up that are “controlling the supply chain,” providing products and services to end consumers at lower costs than many big retailers while pocketing the disintermediated profits.

But before you leap headlong into a Web server (which, let’s be frank, could hurt!), let’s not forget that physical presence still matters.

CNBC reports that “what’s old is new again” for some e-commerce retailers, outlining that a “growing number of online retail companies are setting up physical stores” in response to trends like “showrooming,” whereby consumers do in-store flybys only to later make a purchase online.

IBM vice president and global retail leader Jill Puleri was quoted in the story with this observation: “If there’s one thing showrooming teaches us, it’s that consumers still want to see what they are buying in person.”

It goes on to cite data from IBM suggesting that “50 percent of online sales were generated after consumers first browesed offline.”

So what’s next? One could easily envision pop-up stores emerging in highly-trafficked areas around the world: airports, train stations, even shopping malls, where consumers could “touch and feel” the merchandise and then get incented to go and make an actual purchase online.

Now if they could just figure out a way to make those in-store mannequins just a little less creepy.

Showrooming With Santa

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ON the topic of Smarter Commerce, I’ve seen two stories today….count ’em, TWO…about the intent for numerous retailers promising to match online retail prices at brick-n-mortar stores during the coming holiday season.

Found that Tickle Me Elmo for ten whole cents cheaper at Amazon???…just step right on up the Target cash register, because the Price is Right!

One of the stories was in The Wall Street Journal, and claimed that over the past few days, Best Buy and Target both had said they would match the prices offered by the online sites of some rivals, including Wal-Mart and Amazon.

This in an effort to combat “showrooming” (bet you didn’t even know there was such a word!), whereby shoppers checking products in stores then buy them on competitor’s websites, presumably for lower prices.

But, as the story goes on to observe, there soon could be trouble at the register, as these new policies require shoppers to both ask for and PROVE the existence of lowered prices.

“Mommy, Mommy, I just found the latest Furby on Amazon.com for a whole fifty cents less!”

Now, excuse Mommy while she fumbles around in her purse for her smartphone!  Oh, never mind that line of people waiting around the store to pay full price for their Furbys!

You get the picture.

According to the Journal story, Best Buy’s going to go them one better, and provide their sales reps some discretion — if the SKU’s price is too low, you don’t get to go!…out the store with your Furby, that is.

All the more reason, I say, to stay in this holiday season, tablet or laptop in hand, with a nice warm cup of Egg Nog, and do ALL your holiday shopping from the comfort of your own home!

Written by turbotodd

October 18, 2012 at 6:48 pm

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