When online brands wander offline
Wednesday 23.10.2019 at 13:00 CET (GMT 12:00)
Duration 60 minutes
What is the impact of adding a manufacturer brick-and-mortar direct channel on the sales performance of the incumbent traditional retail channels, the own online direct channel and the manufacturer’s top- and bottom-line performance?
We investigate these questions for the entry of ten brand stores of a national brand FMCG manufacturer in Germany.
We find no significant evidence of between-firm impact on indirect retail sales, but show significant within-firm cannibalisation on own direct online sales.
While the physical brand store generates an influx of new sales that compensates for lost online sales, top-line growth not always suffices to preserve the bottom line when taking into account the operational costs of the brand store.
Professor Els Breugelmans
Catholic University Leuven