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Widespread Disintermediation in the Retail Industry

  • Date Submitted: 10/22/2012 03:11 PM
  • Flesch-Kincaid Score: 47.8 
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“Many retailers are currently attempting to deliver an integrated multi-channel retail offering to their customers. Observers believe that this will result in the demise of store-based retailing.”
Widespread disintermediation in the retail industry:
Multi-channel retailing allows retailers to sell merchandise or services through more than one channel. The idea behind multi-channel retailing is it enables retailers to use a combination of channels allowing them to leverage the unique benefits provided to attract and satisfy more customers.
For example, the amount of merchandise that can be displayed and offered for sale in stores is limited. By blending stores with internet and/or catalogue channels it will allow retailers to expand the assortment offered to their customers.
Offering more than one channel as a retailer can also help you gain valuable insights into customer’s buying behavior. For example, an electronic channel can show how and why they shop and are satisfied or dissatisfied with their experiences. The internet channel offers the opportunity to collect more information about customer’s preferences. Many online retailers offer feedback questionnaires after purchasing and registering on the site and all purchases are recorded and similar items are offered to customers next time they log on. The electronic channel can also stimulate store visits by announcing store events and promotions allowing store and electronic channel to work well together.
Disintermediation is an important issue in retailing today. Companies must consider disintermediation in today’s retail industry. In their quest to meet the needs of the ever-evolving and demanding customers, companies need to be more aware of consumer trends and the external environments in which they operate.
The emergence of new technologies in the last number of years has influenced retailers hugely not just by opening new channels but also has allowed for smoother transactions with suppliers and has...

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