Will 'showrooming' kill businesses?

[pickpackpockpuck]



I don't see how Amazon wouldn't be "cool enough".  Stuff comes from a warehouse either way and if it's the same product at a lower price with the same shipping and return options then who really cares? 

[Edit: misread your first sentence. oops.] You're right: if the price is lower and shipping is cheap and easy then nobody will care if Amazon is "cool" enough. Amazon is so big that they can sell cheaper than just about any competitor and offer things like free shipping. They'll probably have great SEO too, so if you go use your local B&M as a showroom and then google the product you're looking for, Amazon will likely be the first result you see, selling what you're after at a cheaper price than anyone else.

 

[brad-t]

I'm not convinced that designers are willing to stick a knife in the back of the stores they rely on to exist. Amazon can't make up 100% of their business.

 

[LA Guy]



I'm not convinced that designers are willing to stick a knife in the back of the stores they rely on to exist. Amazon can't make up 100% of their business.

Designers are also worried about Amazon's image as an off-price/low price site, a little like a bazaar, and they've been having issues getting designers. The only real success so far has been their MyHabit flash sale site.

You also have to realize, to really comprehend the situation, how behind the curve luxury brands and retailers are in terms of understanding and using the digital landscape. A senior partner at the BSG even commented on how few luxury brand reps even understood how much (20%) of the total online retail Amazon controlled. Put it this way. Back in 2005 and 2006, I spent a lot of time trying to convince boutiques and brands that they absolutely needed an online presence. A site with collections and contact information and stockists, at very least, and with e-commerce, if possible (closest connection to the customer). Some brands are still now only testing the waters. A lot of them still see online things as a fad, a trend. This is in 2012, people.

 

[Find Finn]



This is completely different from your aunt, who is actually losing money. The sentiment maybe the same, but that doesn't mean that the two cases are analogous.

Believe me I know, I have tried telling her for years.



I have a question.

How big and expensive items are you guys will to buy online with out have seen or dealt with it in the flesh, would you buy a car?



I heard today that a danish (photography) retailer has begun to charge a service charge for helping customers, which you will get back, if/when you buy something.

 

[Gavin]



You also have to realize, to really comprehend the situation, how behind the curve luxury brands...are in terms of understanding and using the digital landscape.

Coming from a digital marketing background and working on the retail/brand side now, this continues to amaze me.

 

[Raindrop]

Coming from a digital marketing background and working on the retail/brand side now, this continues to amaze me.

People are slow to change..especially when they're successful and riding the waves.

 

[LA Guy]



People are slow to change..especially when they're successful and riding the waves.

It's more than that. It's an entire industry. Consumer tech to up there in the front, as would be expected, but the extent to which luxury brands (denim is doing a better job) is behind the curve is astounding. And it's not like Barney's (receivership twice in the past decade) is really successful and riding the wave, either.

 

[denm bar]

Showrooming will not kill business, instead it's just another outlet for consumers to rate products and goods. I'm sure if the store owner were in the same situation he would do the same. It could go both ways however, per say if you are over pricing at your retail spot. We can all agree that overhead costs account for a portion of the price increase from b&m compared to online warehouses but for those who actually appreciate customer service and building rapport with the people of the store will make it what it is.

IMO, 'showrooming' is another way of signaling new business strategies to keep current and competitive with the digital age. Many people sell the same thing, but its the wow factor that sets it all apart to lure attraction.I guess that's marketing for ya.

 

[cyc wid it]



Some brands are still now only testing the waters. A lot of them still see online things as a fad, a trend. This is in 2012, people.

I wonder if this is (in part) due to a sense of self-importance in that brands feel their products need to be handled in person to be truly appreciated etc. In a vast majority of cases, photos that don't totally suck and an accurate description are more than enough.

 

[curzon]



I have a question.
How big and expensive items are you guys will to buy online with out have seen or dealt with it in the flesh, would you buy a car?

I've purchased furniture found on the web from the US and Europe and shipped to Asia. Arranging international shipment was not a pointy-clicky task.

Size and weight determine cost of shipping, and once you're sofa, refrigerator and automobile large you may be well beyond the well-known shipper's limits. Hell, the postmen of many national carriers have miniscule limits. From UK Royal Mail:

The maximum weight for an individual item is 2kg, unless it is a book or pamphlet.

2 kilos?!?

Weaklings.

Of course limits create gaps and seams. Just and FedEx, UPS and DHL have eroded the national carries' market share, an opportunity exists for someone to do larger parcels.

 

[curzon]



I have a question.
How big and expensive items are you guys will to buy online with out have seen or dealt with it in the flesh, would you buy a car?

I've purchased furniture found on the web from the US and Europe and shipped to Asia. Arranging shipment was not a pointy-clicky task.

Size and weight determine cost of shipping, and once you're sofa, refrigerator and automobile large you're well beyond the well-known shipper's limits. Hell, the postmen of many national carriers have miniscule limits. From UK Royal Mail:

The maximum weight for an individual item is 2kg, unless it is a book or pamphlet.

2 kilos?!?

Weaklings.

Of course limits create gaps and seams. Just and FedEx, UPS and DHL have eroded the national carries' market share, an opportunity exists for someone to do larger parcels.

 

[notwithit]



That is why I love going to B&M stores.
5 minutes doesn't do it, if you make a designated trip to go look at an item.
Tell me about it it's marsupialed, but it's sort of the same thing when you think about it.
For example here in Copenhagen, it costs 5,80$ an hour to park down town and petrol is 1,80-2,50$ a liter, so if you have 10km each way, how much will you have saved in the end on a smaller item?

Not sure you're getting the math...if you buy from the B&M store instead of going home and buying online, you're still spending the same amount of time, money, and petrol; you're just paying a higher price for the item in question. Obviously it's silly if the difference in price is relatively small or if it's a particularly inexpensive item, but you're still saving the difference between the two prices.

 

[LA Guy]



Not sure you're getting the math...if you buy from the B&M store instead of going home and buying online, you're still spending the same amount of time, money, and petrol; you're just paying a higher price for the item in question. Obviously it's silly if the difference in price is relatively small or if it's a particularly inexpensive item, but you're still saving the difference between the two prices.

Thank you for that. I thought that I might lose my mind soon.

 

[Vashin]

I believe that in urban centres we're moving away from the big B&M to more specialized, independent B&M stores. For example, music brick and mortars are dying. HMV, the big box music store here has been downsizing and closing down... yet recently there've been more niche record stores popping up around town. Although digital downloads have basically killed big box music, those interested in physical formats have decided that vinyl is the way to go. (Doesn't hurt that for new records you get a digital DL to go with your purchase)

It's also now easier, cheaper and better to market independent 'stuff'. A lot of people like to support new/unique/handmade stuff as evidenced by the rise of pop-up shops/etsy/kickstarter/indiegogo etc (though new fashion designers have been having trouble with crowdfunding). I think what's going to stop showrooming is to have more catered/niche selection of products... and then perhaps REVERSE-showrooming.

I watched the pitch of a local tech startup called shopcastr and they basically are a reverse-showroom. They encourage retailers to take pictures of their goods and put it online. This helps potential consumers find and discover unique products. Chairs from the set of Total Recall? Cool. It's also about letting stores tap into people's social graph... the more people (especially friends of fans) get excited and talk about a store online, the more they want to visit the B&M.

I'm not saying the shopcastr platform will win out and be massively huge, but I do believe this is the direction consumers and stores will be moving towards... There's a lot of opportunity for innovative ways to get people into the B&M. You just have to make the experience beyond just buying goods in the most efficient manner. (which online stores like amazon are amazingly good at)

 

[Gus]



I believe that in urban centres we're moving away from the big B&M to more specialized, independent B&M stores.

I wish that was the case where I live, but the rents have become so high and the leases so one-sided that only major national chains can afford the triple net lease terms and $$$ build-outs. Rent alone for a B&M specialty store is what is killing specialty IMO.

We have an attractive and lively downtown area, but when a specialty store closes, now a Starbucks, Apple or major women's fashion apparel chain takes over the lease (or a restaurant). Landlords would rather have the guaranteed rental income from a major chain rather than take a gamble on the failure of a small, specialty store. You can't blame them. It is simply an economic reality.