Debunking Conventional Wisdom in Retail
But Amazon's influence stretches further than just the web; it's the new Wal-Mart. Mulpuru suggested that "even though there are so many web retailers that see Amazon as a competitive influence, the reality is that physical retailers need to see Amazon as a competitive influence too."
3. Manufacturers are all now selling direct. The Shop.org/Forrester Research State of Retailing Online study found that 15 percent of retailers cited manufactures with an e-commerce division as their biggest competitors. For example, Sony sells its products wholesale to retailers for their brick-and-mortar stores and e-commerce sites, but also sells to consumers direct via its own e-commerce site.
In the new retail paradigm of declining margins, manufacturers will be forced to change roles. They'll join the game as "reluctant disruptors," opening physical retail stores to stay competitive with the Amazons and Wal-Mart's of the world.
"That's where the most promising margins exist," said Mulpuru. "Manufacturers are often better suited to sell products than store associates, who may not be as well-trained or well-educated about the products that they're entrusted with evangelizing."
4. Social networks will be the mother of all interactive marketing tactics. Six hundred million Facebook users equipped with peer-to-peer sharing could in fact transform a brand's way of selling online or its marketing strategy. But in reality Facebook struggles being a force in e-commerce.
Fifty-eight percent of respondents in the Retail Online Benchmark Recontact Survey, Q2 2010 said they use social networks to keep up with friends and family. Only 13 percent have viewed networking pages set up by retailers, and just 7 percent have added videos and images from a retailer's social networking page to their personal profile or posted a comment to a retailer's page.
Despite these low numbers, retailers continue to fawn over social media fans. Sixty-one percent of respondents to The State of Retailing Online 2011 survey said they plan to open a Facebook store in 2011 — more than any other social media tactic.
