W. Frank Dell II, CMC

Is it time for Brands to Go Direct to Consumers Online?

August 10, 2010

FROM RETAILWIRE:
It's time for brands to seriously consider cutting out the middlemen. In this case, that would be retailers, according to Bob Egner, VP of global marketing for EPiServer, in an opinion piece on the Brandweek website. Is it time for brands to take greater control of the brand experience by selling directly to consumers either online and/or in stores?      [more...]

Shoes and iPods are different than food. No single CPG company represents more than 11% of supermarket sales. For them to open a retail store would unlikely be successful due to the small range of products and backlash from retailers that would discontinue products.

What will work is for CPG companies banding together for online fulfillment of dry products. Many have regional brands which consumers that no longer live in the region want to buy. Many have low volume items with limited distribution that some consumers want. With FedEx and UPS creating home delivery networks, that would be a natural.