There was a special report about Walmart turning 50 in Women’s Wear Daily and I they had some numbers they wanted to share with the rest of the world .
They had more information but I think you get the general idea. Walmart has changed everything. Doesn’t their size frighten you? It frightens me. How could anyone compete with this Goliath? Certainly I’m not talking about Louis but just in general, how can anyone compete in the retail world with something so large. Then again I feel like everything now is big. I guess you can’t produce anything economically any more without HUGE quantities. The global economy now means that your product must reach every corner of the world. But how does that keep your product SPECIAL? For companies to be known all over the globe they have to have that BRANDING machine in place. Companies have to be accessible on the internet, and they have to have hundreds of points of distribution. Zegna has 125 stores in China alone. Still I can’t help getting a queasy feeling that with so much exposure the product just becomes another commodity. It’s almost a vicious circle that you can’t get noticed until you are already over exposed.
With media firing off information so fast to consumers, manufacturers might get a leg up with the exposure. “New and different” happens every day and then the news becomes stale just as fast. The consumer gets lost and confused and retreats to the familiar, “BRANDED” merchandise. Back to the circle. On the other side of this issue is the elimination of brands because retail companies can’t compete. The perfect example of this is trying to find brands at CVS. Years ago vendors would fight for shelf spaces that were eye level, they would pay CVS to get the best shelf position. Now the best positioned product is the CVS Brand, which is usually cheaper than the name brand. But you find yourself looking tirelessly for the “name brand” which is usually buried between the CVS brands. The reason for this is that CVS can’t beat the price of Walmart for “name brands” so they try to win with their generic brand….sometimes these products are just not the same. So to get the “brands” you want you have to drive to a Walmart (or shop on line) or buy generic. Best Buy is another example of Samson and Goliath, which is funny because Best Buy used to be Goliath. Best Buy is now closing stores because Amazon is so BIG and they don’t have the expense of having to support brick and mortar stores which enables them to compete on price.
The way we shop is changing so fast….but I’m not sure the consumer realizes what they are giving up to pay the least amount for what they want. And soon I fear they won’t have a choice to actually go to a store and sample the choices. Are we so willing to give up the act of experiencing things just to get the cheapest price? Obviously the answer is a BIG yes.