Catalog bigwigs pontificated on the state of the industry and their own businesses in a power forum here Monday moderated by Sherry Chiger, editorial director of Catalog Age, and consultant Mark Swedlund.
Not surprisingly, the Internet was a big topic of conversation.
About 40% of J.C. Whitney’s business is online, said Tim Ford, president of the automotive cataloger. But, the majority of those purchases are still triggered by the print catalog.
Ten percent of J.C. Whitney’s marketing budget is devoted to online initiatives, primarily affiliate marketing and paid search. The company manages about 1,000 affiliates and has many more, accounting for seven to eight percent of sales.
The Web is perfect for the company because of the breadth of its product offerings – about four million different applications for various vehicles. “It’s difficult to convey that in a catalog,” said Ford.
Barry Gilbert, CEO of Smith & Hawken, said for his company one of the advantages of the Internet – and retail – over paper catalogs is the ability to get a product out to market quickly and tweak offers that aren’t working.
He said his company hasn’t felt the sting of channel conflict. Instead, the multiple channels have served to promote each other, rather than compete.
His advice to catalogers thinking about starting a retail operation? “Pause…and have a drink, he joked, noting that direct and retail are very different animals. Those who make the leap successfully, he said, are those with “deep pockets, a strong constitution and a long term plan.”
Channel conflict is a risk if the messaging isn’t consistent, said Fred Neil, vice president of strategic marketing for computer cataloger CDW. “It’s important to make sure your online and offline groups communicate well.”
Gilbert agreed. “You have to merchandise with al your channels in mind. Your customer thinks of your brand as one.
