Despite marketing channels –and distribution- are certainly not the most “sexy” element of the marketing mix, yet it remains a key factor in your marketing strategy. With the explosion of internet and online shopping in the past decade, consumers are now less sensitive/responsible to vast, enormous retailing stores. They have online shopping for that (internet is the biggest shop ever: it’s unlimited in space!), and are nowadays seeking for more quality service and better location. That is why a new trend among retailers (Sears, Best Buy, Staples or Home Depot) is to shift from huge big-box stores to more smaller, mobile and urban ones, as we have seen in last class (through this article: http://online.wsj.com/article/SB10001424052748704728004576176601936377760.html).
Another interesting “trend” among retailers is the increase of “pop-up” stores where online and physical shopping mix up. Skimming through the Brand Channel blog, an article about new Wallmart retailing strategy (“Walmart Making Technology Push”, posted by Mark J. Miller) caught my attention. It describes the efforts made by the largest North-American retailer to stay competitive in times when virtual online shopping is the new way of consumption. One of the solutions Walmart experiments is these temporary 1000 sq.ft. “pop-up stores”, which actually carry the website brand Walmart.com rather than the simple brandname and promote online shopping. Customers can actually buy a range of selected products online… from the (physical) store store, thanks to computers available on display tables. “The experiment comes as big retailers look for ways to capture consumers who are increasingly switching back and forth between retail channels by browsing for products online then buying in stores, or browsing in stores then buying online” said Barney Jopson for the Financial Times about Walmart’s new strategy.
I think Wallmart adopts the right strategy by educating its customers to online shopping. Distribution and marketing channels are not fixed elements; they evolve with time, trends and shifts as well as products, customers and environment. Even for huge retailing companies such as Walmart whose ecommerce represents 1.5 to 2%, online shopping has to be take into account: success of Amazon or eBay are the best examples.
Source: http://www.brandchannel.com/