BRICKS & MORTAR STORES
MEET INTERNET CHALLENGES
By Janet Herlihy
Internet selling has received a lot of buzz in the past few years, but traditional bricks and mortar stores are using their own unique advantages to meet the e-tail competition.
At first glance, it might seem that online rug retailers have a huge advantage over traditional stores. They have a "virtual" store front and inventory and they can sell products 24-7.
But traditional rug retailers also have advantages. Most importantly, a real presence is hard to beat, especially when it offers the right rugs and top customer service.
There is no denying the fact that competition from the online channel is heating up, and several bricks and mortar stores shared their views with Rugnews.com about how they are meeting the challenge of Internet selling.
Shopping Both Channels for the Best Deal
In our price-driven culture, consumers have learned how to use the Internet to comparison shop.
"Consumers can go to a store to find a rug, find out the manufacturer and then go online to try to find it for less,€VbCrLf said Alex Kimia, senior vice president at ABC Carpet & Home in New York.
Others find a pattern and price they like online and go to a store to see the real rug. Traditional retailers spend time
and effort with these consumers, who may not say that
they are only in the store to do research.
Such online competition is a concern at some ABC locations, but not the flagship store in Manhattan, according to Kimia. "With lower price rugs, it is a significant problem, but not as much with mid-to-high end
products. Some manufacturers, such as Nourison and
Momeni have policies that set a lowest price. Our own policy is to match any price.€VbCrLf
Exclusive Products
The best way to avoid cost cutting competition
is to carry exclusive product, Kimia observed.
"We design and manufacture most of our rugs, so a majority of our ugs cannot be shopped,€VbCrLf Kimia said. "It's the only way to do business, especially in New
York€VbCrLf
A Level Playing Field
Nourison has developed an Internet policy that minimizes the threat of unfair practices according to Alex Peykar, a company principal.
"We've done our best to maintain our customers'
health,€VbCrLf stated Peykar.
There are two basic types of rug e-tailers, according to Peykar.
"One tries to do business through price wars. The other tries to create a shop with traffic based on its own merits,€VbCrLf he explained.
"There are expenses to run a good, legitimate e-tail
operation that require a decent profit margin. Those
that are working on a price war, will put themselves
out of business eventually,€VbCrLf he added.
"We have been policing the Web and are pleased to say that we have corrected most of the problems. We'll
continue to enforce the policies to help all our
dealers,€VbCrLf Peykar concluded.
Capitalize on Traditional Strengths
At Baer's Furniture, Boca Raton, FL, it's more about
offering the consumer the chance to see and touch the
rug in addition to other services that are not standard online.
"Online retail is no more of a challenge than regular
retailers,€VbCrLf said Cathy Baer, rug buyer for the
furniture store. "We will not be undersold and will
price match other offers for the same rug and, if we
can, we'll save the customer money, too.€VbCrLf
If a shopper comes in holding a printout, it's easy
to know they're comparing price, she noted. "If someone asks for a specific item, we try to find out what's going on so we can match the price. We offer additional services
including in-home trials and in-home measurement, as well as an easy return policy,€VbCrLf Baer stated, adding, "It's
my guess that when consumers call an online retailer, they're reaching a service rep, who just takes their order. We are a full service furniture store that sells rugs as
accessories. We can help customers coordinate
everything from window coverings to bed linens to
rugs.€VbCrLf
Matching the Online Price
All the traditional retailers who spoke to Rugnews.com said they would match the online price.
"We'll match any online price," emphasized Vicky Kammeyer, vice president of Rug Masters of Charleston, SC. " We had a customer who told us she'd found the same rug online for less. We matched the price and the customer took it home that day.€VbCrLf
Rug Masters offers other services, as well. "We clean and
repair rugs, and our rugs are backed with a guarantee. We can offer education about rugs, too.€VbCrLf
American Home, headquartered in Albuquerque, offers mid-to-high end rugs, 80% of which are proprietary designs created specifically for American Home, explained Jack Freed, rug buyer for the southwest home furnishings chain.
"We also work with vendors who offer protection so
that if their rug is being sold below the established
retail price and they are informed, they will have the
rug either pulled or the price adjusted,€VbCrLf Freed said.
"We do have some customers come in with pictures from
the Web and we try to show them something similar and
better, €VbCrLf Freed said.
"Every day, somebody comes to our store and says
they have seen a rug online for less,€VbCrLf said Rakesh
Agarwal, chief executive of Rug & Home, Gaffney, SC.
"It doesn't matter with one-of-a-kinds, but with a lot
of programmed goods, even some that are supposed to
have a minimum price, we see prices all over,€VbCrLf Agarwal
said.
To assure that the lower price is real, Rug &
Home will ask to see an email printout or, "Once in
awhile, we make a call to make sure. 99%
of the time, we will meet the lower price. We have
excellent customer service, but when it comes to
dollars and cents, there's no loyalty,€VbCrLf Agarwal said.
ED NOTE: We welcome your response. Please email us at Lwyman@rugnews.com or vent your ideas at www.rugnewsblogs.com.
06.20.2007
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Janet Herlihy is a Texas-based free-lance writer who frequently covers the rug and floor covering industry. She was formerly rug editor for HFN and editor in chief of Carpet & Rug Industry magazine. |
Janet Herlihy
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ED NOTE: We welcome your response. Please email us at Lwyman@rugnews.com or vent your idea on www.rugnewsblogs.com.
06.20.2007