Showrooming - Thread or Opportunity

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E-Commere Assignment Showrooming Thread or Opportunity Philipp Knühmann E-Commere Assignment Showrooming Thread or Opportunity Philipp Knühmann Table of Content Showrooming – thread or opportunity. 2 Definition 2 Current Solutions 3 Examples 3 Target 3 Media Markt 3 Google 4 Hollister 4 Small businesses 4 Conclusion 5 Showrooming – thread or opportunity. Considering the fast growth in mobile and e-commerce the way of consuming products is changing rapidly. Thus the following essay is going to describe the major issue of showrooming, how it affects traditional brick and mortar companies, and which threats and opportunities are developing. Definition Showrooming describes the practice of exanimating and testing products in traditional brick and mortar shops without purchasing it, but making an online purchase in order to find a lower price than the one from the original brick and mortar retailer. This is possible through different overhead cost from online stores. Caused by this practice, consulting by employers of traditional retailers is used and thus brick and mortar shops suffer from fewer sales, especially retailers who offer mostly electronic goods. On the other hand, retailers who sell mostly their own brands are less affected (e.g. Apple). The main cause for this evolution is the huge spread of smartphone and mobile commerce, where the consumer is able to compare prices from different shops all over the internet and order a certain product immediately with one’s phone. Recent statistics say that 1 out of 5 customers are showrooming, which is about 25 %. The question is though, why do people behave and react in this way. The price is probably the most important issue; through the Web 2.0 everybody connected to the internet can check prices and evaluations from other customers and stores online within seconds.

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