Nothing To Fear But Fear Itself ... And New Competitors, Guest Series Part 3Source: Pitney Bowes Software
By Steve Topper, business solution architect, Pitney Bowes Software
Retailers face vastly more competition than ever before with new entrants continually pouring into the market. Complicating the picture is the fact that, at times, it is suppliers that are mounting a new competitive challenge. Manufacturers and consumer packaged goods companies have for some time been creating strong, direct relationships with customers. What began as the brands’ online superstore has quickly spread to more brands opening up brick and mortar outlets in major shopping districts. The ubiquity of the Apple store has inspired other consumer packaged goods manufacturers to think that they can meet their customers in person, as well as digitally.
One of the most troubling issues this raises is the fact that CPG brands are particularly adept at creating and maintaining strong relationships with their customers. This has only been enhanced by social media efforts, with many consumer facing companies pouring millions of dollars into creating a thriving community of fans and followers on Facebook and Twitter. Essentially, product manufacturers are becoming masterful at creating close relationships with those that buy their products. This direct relationship can surely only be seen as a realistic threat to retailers.