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Friend Or Foe: When P&G (And Other Partners) Push Direct Selling

Written by Evan Schuman
March 10th, 2010
The growing movement of major league consumer goods manufacturers selling directly from their Web sites is hardly unexpected. But the lack of a defensive reaction from retail IT is. For more than a decade, a mountain of extranet projects has allowed data to flow freely from manufacturer to retailer, with real-time data about pricing, inventory and millions of marketing insights. Is it time to radically reevaluate what is being shared?

The direct-sell CG announcements are all couched in politically sensitive phrasing, with promises that it's just a short-term test to better understand mutual customers and that some of the data will be shared with retailers. Some even argue that these direct-to-consumer moves will help retailers make more money by allowing the manufacturer to better target its products. (That argument is not necessarily impressive, but making it with a straight face is.)

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