Will 'showrooming' kill businesses?

[gettoasty]

I actually agree with you up to the part of the coolness factor.

Shopping for clothes is not like traveling unless you are actually traveling and find yourself at a store during your trip similar to what Shah is doing. Then it becomes cool in the sense of experiencing something sentimental like finally meeting your idol.

I really enjoyed my marketing course but for the life of me cannot remember all the details like distributors, external and internal parties of influence (different spheres of consumers) etc.

LN-CC is located in a tourist country anyways right? I think traveling there is more of an attraction than saying "LN-CC is cool so I'm going to visit the country".
It's just a sentiment a minority of fashion conscious consumers care about IMO.

 

[brad-t]

LN-CC was just small example, and one that's not applicable to me. I'm sure I'm not the only one who forms relationships with the shops I frequently shop at.

 

[gettoasty]

I still think you're seeing everything at a local level. I am sure these local shops will survive within the community if it is close knit, but the early example you gave of Amazon is in a different competing environment. Even with small mom&pop shops, you need not look farther than across the street at Wal-Mart and the chains every few miles apart.

Specialty stores will have its niche, but in terms of fashion in staying on topic, only the best will survive and the number is dwindling.

Specialty stores like food will always be popular though because we are all fatties by heart.

 

[London]

Amazon is not going to put certain niche retailers out of business, just like Walmart didn't. Yeah Walmart wiped out many retailers, but other retailers learned how to compete against Walmart by targeting a higher end audience with a better offering and great service.

 

[LA Guy]



There isn't enough volume and revenue in those brands for Amazon to be bothered.

I know for a fact that they are actively courting those brands. Myhabit, which is their first reasonably successful foray, and only in the flash sales niche, has sold Ann Demeulemeester, Jean Shop, Robert Geller, and other small brands.

 

[brad-t]

There's almost no Wal-Marts where I live, thankfully.

 

[gettoasty]

Point is that Amazon will make it harder for retailers in the fashion industry to compete and only the best who that can adapt will survive.

I think Amazon is a pretty used household name, and despite the luxe and mystery that shrouds these boutiques, just look at another case study like Starbucks. Starbucks before and now.

I just think you're naive Brad

 

[MikeDT]

So "showroom" is now a verb, guess they'll have to update the dictionaries.

It only gets worse from here though, especially in countries where people don't really have the Judeo-Christian consciences

That must be the 11th Commandment: Thou shalt not showroom. Honor thy brick'n'mortar store with thy credit card.

There's almost no Wal-Marts where I live, thankfully.

No Wal*mart where I live either.....good.

 

[brad-t]



I just think you're naive Brad

I think a fashion world ruled by big box retailers would be very unappealing. So I think it would be more appropriate to say I'm in denial.

 

[gettoasty]

Big box retailer of the future in fashion

You get 4 SAs to attend to you

 

[MikeDT]



Big box retailer of the future in fashion

You get 4 SAs to attend to you

Funnily enough that happens to me all the time here. It's like "The English guy is in our store!!!" ...gets annoying occasionally though, when I just want to browse in peace.

Sometimes the SAs here even want to do photoshoots...

...I was only buying a pair of sneakers.

 

[LA Guy]



I've been thinking a lot about this over the past few days -- I daydream often about opening a boutique here in Montréal, so I find the consensus a bit disheartening. I also think it's largely incorrect.
I read this article the other day about how Amazon is setting up distribution networks in major cities to offer same day delivery: http://www.slate.com/articles/busin...ommerce_giant_will_destroy_local_retail_.html
For high commodity items like computers/electronics, books, simple tools, etc., yes, Amazon is coming to eat your lunch. At this point I would be working on an exit strategy. However, for items that aren't highly commoditized, this isn't such a huge danger. I don't see how in the foreseeable future, Amazon is going to take over fashion retail.

They are certainly trying their best to pry the door open with their money filled hands. Part of Amazon's problem has been that luxury brands are ridiculously tech-ignorant, and haven't even realized how much of the US market share (20% and growing) Amazon controls. But when you are Amazon, you just go and hire very expensive consultants like the Boston Consulting Group to make your case.

The issue of coolness is certainly a valid one. Buying from a place like LN-CC or whatever is satisfying in its own way, even if the interaction it as at a shallow web-only level.

Sorry, but you are wrong here. Just look at the members of this forum, who, whether you like it or not, are generally people who care more about *where* their goods come from than most customers. The "coolness" factor is associated with the product, not the store from which they were bought. The store is cool because it has cool product, not the other way around, with very few exceptions. Think of where people buy their Common Projects, for example. Do people think that Common Projects from Colette are cooler than those from The Tannery (a mishmash of a store.) Also, coolness is the most transient of currencies. in 2005, Odin was the coolest thing around. Thinks about it. Like I said before, stores have to compete on price, and also offer services that e-tailers cannot, if they are going to compete.

But what I think is more important is that most mid-to-high-end labels don't produce a high enough quantity of each item for such a strategy to be applicable. Especially if you are carrying labels that don't have a very high level of distribution, you can probably rest easy knowing that Amazon is not about to start selling obscure Japanese designers by the truckload.

How much White Mountaineering was in North America 5 years ago? Supply is (relatively) easy if the demand is there. And if the brands can be persuaded that Amazon can represent them properly, they will sell to them.

 

[LA Guy]



I think a fashion world ruled by big box retailers would be very unappealing. So I think it would be more appropriate to say I'm in denial.

Really, though? What about zozo? Rakuten? Rakuten is the largest mall in Japan. Online shopping from a "big box" retailer can be very attractive. I don't think that anyone is saying that there is no place for small B&Ms, just no place for B&Ms that cannot adapt quickly and find ways to compete.

 

[gettoasty]

LA Guy explains my points very well. I need to go back to school

 

[brad-t]



Really, though? What about zozo? Rakuten? Rakuten is the largest mall in Japan. Online shopping from a "big box" retailer can be very attractive. I don't think that anyone is saying that there is no place for small B&Ms, just no place for B&Ms that cannot adapt quickly and find ways to compete.

I'm not against larger retailers on principle. Rakuten is kind of a disaster, though. Zozo is nice. In general I special order from smaller stores if they have what I want.