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Showrooming

January 25th, 2012

I admit that I go to different stores for ideas. Sometimes I think I could spruce up my living room with new pillows. Other times, I want to see if there is anything new in the kitchen section that could make my amateur adventures easier. I image I am not the only one. And, I will price compare in the store through my phone or visit another store to see their ideas before deciding what I want. But, this only happens when I am browsing and have time, which is rare.

A few years back I needed to buy a washing machine. I started with Consumer Reports and found the top ranked washing machine that fit my other criteria. Then I looked for stores that carried that brand. Being a larger than normal purchase for me, I made time to do my research. I visited three different stores and finally decided which washer to buy. Of course, it was in the first store I visited. What I found most interesting was that I looked at the same washing machine three times, but each store called it something different.

My experience is not unusual. Lots of stores carry similar products, but with slight differences, even in the SKU, so that exact comparisons are more difficult. They do this on purpose. It creates exclusivity and encourages people to buy where they trust the store rather than the product alone.

Imagine my surprise to find that Target recently wrote a letter to suppliers wanting exclusive product to compete with online stores. Target already has many unique items, but must always roll the cost of the physical stores into prices. It’s hard to compete with online stores that don’t have showroom costs.

Is the showroom a hindrance? Yes and no. Yes due to cost and no because it’s hard to know exactly how something looks and feels from a photo online. At the same time, if an online store offers a significantly lower price on the exact same product I want and waves shipping costs, the new online shopping expectation, will I wait a few days to have my new toy shipped? It really depends and I imagine many people answer the same way I do.

I see where Target is going with this idea and it will be interesting to watch it unfold. However, continuing to connect with customers so they want to by from Target will remain important. If I trust Target more than a random online store that I am unfamiliar with, I will buy from Target every time. Again, I use myself as the example, but there is some universal truth to how I shop.

Will this change over time? Of course. The popularity of online shopping is growing. There could very well be a day when online is the standard for finding new ideas. Exclusive content may not be the best solution in that space either. For right now, lots of people still start at a physical store or go to a store to verify what they found online. It’s still critical to make sure these customers have a good experience. As things change, it will be important to implement market research that explores how and why people are making the shift in order for physical stores to continue to compete. It’s an exciting time.

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