Quantcast StorefrontBacktalk » Blog Archive » Mattel Stops Toying Around With Channel, Sells Direct
advertisement
advertisement

Mattel Stops Toying Around With Channel, Sells Direct

Written by Evan Schuman
October 28th, 2009
Like this story? Share it
To share this story with people in your social network, please click on the network icons below.

As major consumer goods manufacturers add more complexity to their Web sites, the temptation to abandon years of carefully orchestrated channel arrangements is intense. Despite futile resistance from retail partners, most of the largest CG manufacturers have started selling direct.

This week, Mattel–the $6 billion toy maker with brands including Hot Wheels, Matchbox, Barbie, American Girl, Fisher-Price and Tyco–joined those ranks and accepted channel conflict as it started selling directly through its Web site and social networking sites.

The latest move will unveil a major Facebook presence for Mattel on Friday (Oct. 30). But the heart of its package is its new Web site, launched in mid October. The site doesn’t include any capabilities that don’t already exist on other E-Commerce destinations, but Mattel has opted to tout three interesting features: ShopTogether, one effort to deploy group or shared shopping; ConciseClick, a rollover-and-click technique that sits above site videos and allows consumers to click in a very small number of places to get more info about products; and Play Pattern Navigation, which allows shoppers to navigate the site based on a child’s play behaviors.

Mattel already knew that parents were doing extensive online research before making purchases so it made sense to offer the purchase capabilities, said Michelle Chidoni, a Mattel spokesperson. But she said the channel conflict issues are minimal for two reasons. First, the toy maker has made sure that its pricing is not going to threaten any retail partners, which means products on Mattel’s site will be markedly higher priced in most cases. “We’re not severely discounting our products on our site. It is not a discount site so we’re not competing with [retailers] on price.”

Second, Mattel will have many ways that consumers can use the site to connect with local or otherwise desirable merchants. In other words, if the site is delivering a lot of new leads and customers to its retailers, those merchants are not likely to feel offended.

The next phase of the site, according to Chidoni, will have extensive customer-written product reviews, but she wouldn’t say when that phase is expected to launch.


advertisement

One Comment | Read Mattel Stops Toying Around With Channel, Sells Direct

  1. Bryan Scott Larkin Says:

    If the pricing is significantly higher than retail, the site will definitely serve as a driver to other retailers – even online retailers. This will be similar to retailers touting “list price”. Retailers should like it.

    As a research tool, their idea on play patterns should be interesting to follow as is their ShopTogether idea.

    And if things go really well on the site and channels become more problematic, Mattel is prepared leverage the site for dirct sales via agressive pricing. Overall, it sounds like they are making a smart move.

Leave a Reply

Newsletter

Quickly catch-up on the latest in E-Commerce and Retail Tech with our free weekly newsletter, with urgent bulletins as news merits.
advertisement

Most Recent Comments

Kill All The Passwords

This article does mention, but does not give enough attention to, the fact that the attacks discussed are only feasible when the encrypted password file can be copied and subjected to an offline attack. The trick is to have authentication performed on a separate, much more strongly secured host - such as an Active Directory Domain Controller, or a Kerberos server, or a NIS+ server, or even using something as banal as an LDAP-over-SSL authentication dialog. In these environments, the odds of the "password file" being stolen and subjected to an offline attack go to near zero, and only online attacks may be carried out by the attacker. With sensible exponential backoff between failed password attempts, lockout after a modest number of failed attempts on a single account, and pattern detection, that minimum 7 character password is quite secure enough. Passwords aren't dead yet for security purposes, and they will be with us for a very long while to come for practical purposes. The trick is to employ them correctly. Read more...
The possibilities you describe are years away from being implemented at best, so for the moment passwords are an ugly reality. Luckily, password managers can easily manage hundreds of passwords of any length. The only thing a user needs to remember is the master password. It seems like an easier task to educate users on how to use password managers rather than implement complex security technology on a global basis. Read more...