The Latest from 360pi

Who should bear the burden of showrooming

The burden of showrooming shouldn't be on the retailers alone. Find out why it is crucial for manufacturers to step up and invest in Brick-and-Mortar stores

I recently read an article about online book discovery and it got me thinking about showrooming in the book industry. According to a survey done by Harris Interactive, Barnes and Noble is the 5th most showroomed retailer. What makes this industry interesting is that it is facing showrooming threats from more than one angle:  not only is online bookselling giant Amazon offering books at much lower prices, but the advent of eBooks has also shaken up the industry quite a bit, and has resulted in book sellers, such as Canadian retailer Indigo Books & Music, shifting their product focus to higher margin, less “showroomable” items such as toys and home products.

Here is the problem with the current model: As the article by Owen points out, online book discovery is broken. Most people simply don’t discover their next book purchase online. Apparently they either get recommendations from friends, or they discover it in store. Yet, as I mentioned earlier, showrooming in this industry is very real, meaning that people make their actual purchases online. So book lovers go to the store for a leisurely coffee-drinking-book-browsing experience, choose their next title, and then purchase either an ebook version or from a cheaper online retailer. And the publishers aren’t doing anything to help. By keeping their prices high and not taking into account the higher overhead of a brick-and-mortar retailer, the publishers are forcing book retailers, like Borders, out of business. They simply cannot compete in the age of Amazon and eBooks without flexibility in their prices and costs. But, as Owen highlights, it will not only be the retailers that suffer, the publishers will suffer alongside them as they lose their major advertising channel.

However, this situation extends beyond just books. There is a reason that showrooming happens. We want to see and touch things before we buy them. And yes, there are key things the retailers should do, like getting competitive price intelligence, and yes, there are things that they can do to help combat showrooming, like finding ways to add value for their in-store customers or implementing price matching policies (as Best Buy and Target have done). However, in the end, it should not be all on their shoulders. Whether manufacturers like it or not, brick and mortar stores are a major advertising channel for them, and it is time that they treat it as one they need to invest in.

About the Author
360pi derives profitable insights from product and pricing big data to help leading omnichannel retailers, etailers, and brand manufacturers compete and win with shoppers. 360pi’s customer base accounts for over $US200 billion in annual product sales and includes Ace Hardware,, and, along with several Fortune 500 consumer products companies. With the majority of in-store purchases being influenced online, 360pi helps retailers and brands successfully navigate the multi-channel landscape with real-time insight into who is selling what, where, and for how much. Ultimately, 360pi customers make smarter decisions faster to drive increased revenues and margins across all channels.