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In
this “Two Faced” model, customers can purchase a limited
selection of your products from your website. This is the case at
upscale fashion accessory designer Kate Spade. The products may represent
a segment of your entire line or be an entirely separate “online-only”
offering. Regardless, customers expect that the manufacturer itself
should offer its full suite of products. The customer is rarely satisfied
by being forced to choose from a limited selection and will often
leave your site without purchasing. The result is a negative brand
experience. At the same time, your distribution channel sees your
online store as direct competition. Even if you sell different products
online, distributors and retailers are now put in the position to
compete with you for a finite number of consumer dollars. Furthermore,
channel partners see your initiative as a first step towards being
totally circumvented by you, whether that is your intention or not.
Channel relationships will worsen and focus on your brand in retail
establishments will be diverted to other brands that appear more loyal
to the distribution channel. |
