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The results can be higher sales volume and better profit margins than the wholesale side of the business, Trenson said.
"It's a 'living learning lab,' " Williams said. "At the end of the day we have no intention of going into direct sales of P products. What we're trying to do with the e store is to get 'learnings'" corporate speak for insights "that we can share with e tailers."
"The primary driver for all this is a more educated and informed shopper, who is getting more information through more channels," said Eric Best, CEO of Mercent, which offers online marketing technology and services.
"Successful disintermediation Nike Flyknit Free 4.0 Orange
An early adapter was Nike, which led the industry by opening full retail stores, factory outlets and e commerce sites. It managed the moves seemingly without sacrificing much, if any, presence in department stores and specialty shops.
we have resisted the practice.
"Manufacturers realize they can increase their margin, establish a more direct relationship with consumers and also be in a position where they're forced to reconcile the changing customer behavior with Facebook, Twitter and also mobile devices as points of engagement with their customers," Best said.
A few years ago, Case said major publishing houses were avoiding direct Internet sales because they lacked brand recognition.
Not everyone has joined the fray.
"The current economic environment is obviously tough. Companies are looking for growth, and direct retail is an easy answer."
And it's got advantages and disadvantages, he said.
In the business world, selling direct is called "disintermediation" and is defined as cutting out the middleman.
Twelve years later, Levi's was back on Macy's shelves and stayed there even after the iconic clothing company launched its own e commerce site.
manufacturers went direct in a defensive response to retailers' growing use of private label goods.
"In today's consumer world, the marketplace reality is that you're going to be shot at from all sides," consultant Amy Case said of the dilemma faced by these old school retailers. Penney.
means more profits and more industry recognition," said Case, who added that many Nike Free Rn Flyknit 4.0
And it has become one of the more blurred industries. Barnes Noble not only has ramped up its online side, but also has created a publishing arm Sterling so the traditional retailer competes with its suppliers.
FORT WORTH, Texas Manufacturers like Columbia, The North Face, Timberland and Fossil are increasingly competing against their best customers retail chains by selling directly to shoppers online.
"Panhandle Slim has had a long standing tradition of separating wholesale from retail and refraining from direct competition with our retailers," said Jamison Hochster, a third generation member of the family operated firm and its director of sales and marketing. "Although many of our competitors today have abandoned that philosophy, Nike Free Flyknit Grey
Another cause is the growing percentage of private label goods that traditional retailers are stocking, depriving brand name owners of shelf space and optimal sales.
Unfortunately, a brief trial in February was followed by a "test" site operated by an outside company, said Glenn Williams, a P spokesman. But the motive is not to sell more Pampers directly at a higher profit margin, he said.
Macy's, Dillard's and other traditional retailers not only have to grapple with steep discounters like Walmart, Costco and Best Buy; they now must contend with rivalries from a direction unthinkable just a few years ago.
retailing lets manufacturers beat retailers at their own game
"But at the end of the day, it is our feeling that we are better off staying out of that arena. Things can change, but we prefer to allow the retailer to do what they do best so we can better focus on what we do best designing great product that appeals to our retailers and ultimately the consumer."
Dawn Trenson, whose New Jersey based FitForCommerce firm advises on how to sell online, says there's usually far less friction with traditional retailers if a manufacturer forgoes brick and mortar stores and does just Web based direct sales, also known in industry shorthand as B2C, or "business to consumer."
By avoiding the middleman, the manufacturer avoids so called slotting fees, which chains sometimes charge to have an item stocked or displayed a particular way, Small said. Not using stores could be a way to get slotting fees reduced, he added.
Aside from better margins, Lew Small, a Nike Free Rn Flyknit Ultd Review marketing professor at York College of Pennsylvania, said that online vending promises better market coverage, since the Web reaches everywhere without the expense of opening a chain of brick and mortar stores.
"The retailers are still upset, but there's not a blessed thing they can do about it," said Case, who heads New Hampshire based Case Strategy. "The power has shifted. As long as you have a brand name or a strong searchable presence, you are just not beholden to the retailers."
Westmoor Manufacturing, the Fort Worth based maker of the Panhandle Slim Western wear brand, is bucking the trend.
Among latecomers to e commerce are book publishers and household products makers.
Procter Gamble created considerable buzz at an e commerce trade convention in September after the mammoth household products maker sold its Pampers disposable diapers directly online.
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