It is only recently that mattresses started to become available for sale at online retailers. For a long time, mattresses were only available at retail stores. Most were sold at department stores and specialty mattress stores. Recently, that has changed. In less than a decade, online mattress sales have grown to more than $1.5 billion annually. You can read more in this article, “ Online sales boom for mattresses squished into boxes ” (USA Today, May 8, 2017). Why were mattresses slow to be sold online? Who is the target market for online mattress sales? What changed in the market that made customers more willing to purchase mattresses [Continue Reading …]
More consumer products companies are turning to direct channels of distribution. When Nike’s new (self-lacing) HyperAdapt sneakers were only available through direct channels at launch. Chapter 10 discusses some of the logic for choosing direct and indirect channels. As you read this article, “ Nike’s HyperAdapt DTC Sales Part of Rising ‘See Now, Buy Now’ Trend ” (brandchannel, December 5, 2016) consider the logic for Nike and other brands discussed. The video below features an interview with some of the innovators behind the Nike HyperAdapt auto-lacing shoes. Why did Nike sell HyperAdapt through direct channels of distribution? Do you think this is a good idea or not? Why or why not?
The What’s Next? box in chapter 10, “Bits and bytes need distribution, too” describes how digital products require many of the same regrouping activities as physical goods. Sean Parker (best known for starting Napster and later as the first president of Facebook) has developed a new product (Screening Room), which would “allow people to watch movies at home on the same day they make their big-screen debuts.” The Screening Room is shaking up Hollywood which is used to a gradual evolution in distribution channels. Most movies play in theaters (where consumers pay relatively higher prices) for their first few months, before moving to [Continue Reading …]