GemThoughts

I still hear about retailers who think they can bully and threaten suppliers who dare to post their products, in one way or another, on the Internet.  Not only is that a teaspoon against the tide, but it is an astounding failure to understand retail dynamics and the remarkable transition we are seeing. Looked at narrowly - only in respect to the so-called battle between bricks and clicks - the issue is plain to see.  Even if a supplier does not open their own web site, their customers will post images and information about the products on their sites.  It does not matter if the web site is a pure play web retailer or another traditional jeweler.  The effect is the same - another retailer is "invading" the threatening retailer's territory.  Moreover, every evidence indicates that the more a brand or product is shown, the more everyone selling the brand benefits.  That, as I said, is looking at the issue narrowly.  But traditional jewele...

Best Buy has been in the news lately.  Its founder has resigned his position, at least partly because business has been steadily declining over the last few years and a solution has not been found.  It survived the collapse of two big rivals - Circuit City and CompUSA - and the street thought it would benefit greatly as the sole big electronics store. Apparently, that may not be the case.  The Internet has hurt, and comparisons are made to software vendors, bookstores, magazines and newspapers.  The reach, speed and low costs of Internet distribution spares nobody.  How about jewelry retailers? The most common reaction we hear is that consumers want to "feel it, and try it on."  Sounds sensible.  But it is too narrow a view.  Here are some angles to consider. Actually, what happens in electronics may the the exact opposite of what happens in jewelry.  In electronics, a consumer goes into a Best Buy to look over a piece of equipmen...