Should Manufacturers Sell Direct?

Out of the 100+ manufacturers that use solutions from Channel Intelligence, about 35 of them sell direct. The percentage of leads that go to the direct store range wildly from 0.3% to 90% but the average is around 9%. So it doesn't look like consumers flock to the manufacturer nor do they typically ignore them. Instead manufacturer direct stores are just like any other store to the consumer. So...should manufacturers sell direct?  The decision to sell direct is based upon many criteria:

• The manufacturer's relationship with their retailers
• The cost effectiveness of selling direct
• The manufacturer's brand strength
• The pricing structure of the product
• The availability of the product
• 400 other factors I haven't mentioned or thought of...

I've heard two comments from retailers in regard to manufacturers selling direct. One said, 'If manufacturers sell direct then I don't understand what we are doing as their retailer. What value do they expect us to bring if they are going act like a retailer?' Another said, 'We can't stop a manufacturer from selling direct. It's their Web site and their traffic.'

I believe manufacturers should sell direct. That sounds anti-channel, but the Internet is about abundance. Consumers demand the ability to buy through all available channels. Different products are sold through different channels and sometimes it makes sense to sell them direct. 

Comments

[Peter Shanholt]

Remember the old adage, "the customer is always right"? The customer may sometimes be wrong...but he/she is ALWAYS the customer. The manufacturer and retailer that quibble over who "owns" the customer are missing the boat- the customer wants what he wants, when he wants, from whom he wants, at a fair price... right now. Manufacturers should sell direct when feasible AND send folks to brick-and-mortar stores. Whichever way the customer prefers. That's my story and, for now, I'm sticking to it. Thanks and good selling.