How manufacturers` online stores can co-exist with retail partners

Except for outlets, Waterford U.S.A. doesn’t have its own stores – it depends on retailers large and small for the vast majority of its distribution. But it does have its own online store, which makes it essential for the luxury goods manufacturer to work with retailers on any channel conflict concerns that come up as a result.

Director of Internet marketing Jennifer Korch will offer a manufacturer’s-eye view of how Waterford.com tackles that issue in her presentation, “Brand Name Manufacturers: New Opportunities on the Web,” at next week`s Internet Retailer 2005 Conference and Exhibition. Korch will offer examples from Waterford’s own experience and ideas on how a manufacturer’s direct Internet presence can benefit both the manufacturer and its retailer partners. “If you are a manufacturer considering going direct online or have already taken the leap, there are ways to handle the situation,” says Korch, who adds that Waterford works hard to balance its roles as a direct seller and retail supplier so as to keep retailers happy.

For example, Waterford has found it beneficial to partner with retailers on cooperative promotions. Another way to help deactivate potential channel conflict between retailers and a manufacturer’s own online store is for the manufacturer to use its Internet marketing resources to gain incremental sales versus shifting consumers from channel to channel, Korch says.

Educating retailers about what the brand site can do for store business is one more way manufacturers can allay any worries retailers may have about a manufacturer going direct online. Wateford.com, for example, expects to launch an events section that tells visitors where to find brand events in local stores. “We want to show retailers that we are supporting our offline business and that we want to be an information source, as well as getting our own online sales,” Korch says.