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According to an article on internetretailer.com, Proctor and Gamble has
announced that it will launch a online retail web site in late 1st or early 2nd quarter this year.
The article goes on to say that Proctor and Gamble is doing this to see how consumers interact with their products online, and that they are not trying to become a retailer, because they are a manufacturer. They are doing this as a “lab” and will be sharing their findings with other online stores (e commerce) that sell P&G products. It is unknown if the pricing offered by P&G will undercut the prices of other online retailers.
On the surface, it appears that P&G is putting spending into market research that should prove to be beneficial to other online retailers, and I think that’s all it is. Could this become a threat to other online retailers? Would it make sense for P&G to sell directly to consumers, other than the purpose of this “lab”?
In the big picture, internet sales are a small portion of total P&G sales. Cutting out distribution and retail channels would not make sense.
Related articles
- P&G opens ‘eStore’ to collect sales data (sfgate.com)
- P&G Tests Online Shop (online.wsj.com)
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