The days of unbridled sales growth on the Internet has reportedly slowed, impacted by the growing initiative to buy local. State and local governments have been hard hit by lost sales due to the growing use of the Internet and face billions of dollars in shortfall tax revenue. Some are said to be fighting back by promoting their own main street, local stores, backed with buy local initiatives.
In Athens, GA., a campaign to keep residents “home” and patronizing local businesses is underway. Similar campaigns are sprouting up around the country to keep the money in the community, rather than sending the dollars across state lines. eWN is also researching a growing disdain supporting big box retailers that are based outside the community. But will it work and have people really stopped using the Internet?
In the wedding business, a study by The Wedding Report says they are seeing approximately the same amount of couples use the Internet to plan their wedding (80%). Reported use of their online time is being spent comparing prices or research items rather than actual than purchases. According to the report, the amount couples spend online has declined. Two other studies also indicate similar trends; a study by PriceGrabber.com (1) indicates 25% more consumers are spending time online to compare prices and get information about products and services. A study by Pew Internet & American Life Project (2) found that 67% seek price comparisons, 40% seek coupons, and 27% seek help on spending less. The same group found that consumers more often look online than buy (3).
In discussions, convenience is cited as the primary reason for online legwork. Comparison shopping in the past required thumbing through leaflets, magazine and newspaper advertisement to narrow down trips to local stores. Today, digital searches easily narrow down exact items and allow for thorough examination of how much each item is being sold for.
For weddings, the use of Internet price comparisons has saved couples hours of legwork. Items like floral arrangement ideas, transportation and venues are researched online but are then narrowed down to local vendors that meet the qualifying criteria, according to suppliers in respective categories. Household items like furniture and bedding must be compared in person to accommodate individual tastes. Other items like groomsmen’s gifts and wedding party attire for the men are researched—but are felt to default to price incentives given by local stores that offer free rentals to the groom and father/ring bearer incentives, rather than spending the money to own limited use outfits.
Discussions with makers of one-off products that must be seen in person feel their goods and services will never be fully replaced by searches. “Our products must be seen to be appreciated,” says Kathy De Cosmo, owner of KatieSheaDesign . "Roses of Distinction” featured products are chosen randomly each month to create a unique “Rose of Distinction” that allows customers to custom order their own products, their own way.
Customization is also a big part of the business for Victoria Joanne , that operates under several different names but all leverage the uniqueness of their products. “I have specialized in custom made wedding accessories for years. The most important thing I have found is having visuals. Clients need examples to get an idea of what they can have. Then from there they can open their imagination and tweak things to the way they would like them. Everything I create is custom made to the specs of each client,” says Joanne.
Both Kathy and Victoria feel they have skirted the ability of consumers to comparison shop and enable each to command a higher price for their goods. Both are noticed to be at the higher end of what traffic can currently bear in a very tight market. eWN is also monitoring other businesses that offer “ultra unique” products and have priced themselves out of the market.
eWedNews
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2010
Posted on 03/09/2010
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