TOUCH, PAUSE, ENGAGE! Personal shopping is not dead yet
Last week I dipped my toe in that thorny question of internet selling v bricks and mortar businesses. For just as in the 1980s when dealers were mounting the barricades believing that if they stood together, they could take on the ‘sheds’, so today's bete noir is the inexorable rise of internet selling and its impact on traditional outlets.
For many, it spells the death of the High Street as we know it - but as ever, nothing is straight-forward. HMV was regarded as a doomed retailing model when it slipped into administration, but it appears that many of its suppliers do not want it to disappear. In short, they don’t want to be totally beholden to Amazon or indeed to Tesco where DVDs and CDs are often loss-leaders.
And they believe that many people still want to hold, touch, feel and browse products (even if they are simultaneously on a price-comparison site on their mobile). However, the important issue is that they are in the store - and it is then up to that store to make it attractive to buy.
And whilst there is a lot of difference between selling a book or CD compared with a high-ticket item that requires maintenance, operating and safety considerations, traditional dealers have found a variety of ways to harness both online activities with their more usual role.
And if you want a glimpse of the future, US internet seller Power Equipment Direct formed in 2002 notched up sales of $87m (£55m) in 2011, a huge increase from the $21m (£13m) it did in 2008.
Based near Chicago, with its own modern showroom and team of Product Experts focussing on product groups such Snowblowers, Generators, Chainsaws and Lawnmowers, PED has established a significant toe-hold in the homeowner market - and as for service, it simply provides an online locator for the nearest servicing dealer (who presumably may or may not provide support).
But what irks the US dealer trade most is that PED does not have to add a sales tax - except to those unfortunate enough to live in Illinois where it is based.
PED is now eyeing up the commercial market, but is also aware than many manufacturers do not want to sell via their site. So at the recent Louisville Show, it launched PED Product Ads whereby suppliers could be represented on the site with enquiries directed to local dealers - with PED taking a commission on sales that result.
Internet activity has come a long way, even in our industry, but me thinks there is much to come as suppliers and dealers jostle for the customer’s dollar (sorry pound!)
