The Lure of Retailing for Manufacturers

According to a recently published eBook by Channel Advisor*, branded manufacturers are wondering: "Should we complement the traditional model of selling solely to wholesalers and retailers by selling directly to consumers?"

And the encouraging advice offered to these suppliers by Channel Advisor?

• "The short answer: Yes, you should."
• "Luxury brands, apparel brands, household product brands – they're all joining the party."

Meanwhile, The ROI's recent survey of retailers (see all results here) confirmed that manufacturers are seizing this opportunity. Indeed, this prompted some retailers to write:

• "We need less on-line competition from our vendors." 
• "Vendors selling directly to the consumer is a huge problem." 

No question, this is a sensitive issue for retailers, and often a frustration. 

But is it really a problem? 

Keep in mind that, over the years, many manufacturers have tried it and failed. Not all, but many. They think that retailing looks so easy! 

But, success in retailing requires a special mix of skills that very few manufacturers can accumulate.

One seasoned specialty store retailer we know exclaims, "Whenever someone says to me they want to open a store like mine, I say 'Great! You should do it!'"

Why so encouraging? He knows that only the pros can make retailing look easy, and work well.

Perhaps those manufacturers tempted to heed Channel Advisor's advice should also be reminded of this old saw: "The best way to make a small fortune in retailing? Start with a large one!" 

Manufacturers selling direct to customers is a genuine frustration. But.... 

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*"Branded Manufacturers: Should You Sell Direct?"
Channel Advisor eBook