11.29.07
Holidays Shopping - Online and In-Store
My family had a lovely Thanksgiving dinner with a husband and wife–choir director and friend of my wife, respectively–this past week. The wife is a professional chef and produced a feast three times the size of what would still be overkill for the eight adults and three small children in attendance. This included two enormous fried turkeys, about 9,000 metric tons of stuffing and some interesting experimental dishes like battered, fried cranberry glaze. Honestly.
However, one of the husbands in attendance left several hours earlier than everyone else. Far from minding his caloric intake, he was heading out to line up for a huge discount sale on an HDTV at a retail store the following morning. Plates were prepared for him and he also took a van to park on site with bottled water for all the other campers. Sure, he might be slightly crazy, but at least he was well prepared and not as crazy as the other people who arrived even earlier.
I’m not a big shopper. I never have been. I tend to stay home around Black Friday to avoid the usual (probably hyped) tales of people fighting over spots in line, tension in parking lots and the other types of things that happen when excited people assemble in large masses. I’m definitely an online shopper, with a few notable exceptions such as clothing and groceries. The past few year’s end media sweeps have frequently discussed the competition between online shopping and physical store shopping for holiday market share. If you look at my ilk, you might see that clearly the Internet has a big impact on physical store shopping. But, if you look at my friend and his van full of bottled water, there are clearly reasons to hit the stores. The shopping experience.
In this case, there are few key factors in the shopping experience:
- A deep discount on a popular piece of electronics. This kind of promotion relies on a good supply chain, among other things, to get the word out about the discount and to have appropriate inventory levels to stores based on a specific publicized date.
- The collective “geek” or “Otaku” factor (to slightly mis-use a Japanese term) of camping out, as if one were after hot-selling concert tickets. This is driven by digital communications: message boards, bargain hunter websites, word-of-keyboard through social networking.
So, rather than being a competitor in this case, the Internet became the engine that drove him (metaphorically) to stand in line for the sale. Although there’s not much research in this area, I also wonder how often someone goes in to a store to check out a product in person and then goes home to buy it from the company’s website. That’s probably far less common, due to adding shipping costs and the fact that web-only promotions are not widespread and deep enough to get over the “have it in my hands today” factor. Perhaps there’s more we can do to use physical shops to drive online sales and online activity to drive store visits. The relationship between brick and mortar and bits and bytes shops is still in its infancy.
Happy holidays, and let’s hope for big retail numbers and no supply chain headaches, online or offline, this season!
