Procter & Gamble, one of the largest consumer goods corporations in North America and beyond, has opened a direct online store for customers in the US. The Internet store, dubbed the eStore, debuts today with a beta tag attached to its name.
The eStore is owned and operated by PFSweb and features the breadth of P&G brands, including Tide, Head & Shoulders, Pampers, Swiffer, Gillette and Febreze.
P&G has launched the eStore with a single, flat rate for standard shipping rate of $5, regardless of quantity or product size.
From the press release:
The eStore’s main function is to act as a “living learning lab” for developing e-commerce innovation to win with shoppers. Shopper insights will continue to be a strong influence in the eStore’s ongoing development to help deliver tools, features and expertise that are great for consumers and also create value and sales for PFSweb, P&G and P&G’s retail partners.
In other words, P&G insists the venture’s main goal is to learn more about online shopping, and not to compete with stores and online retailers that also sell its products. Yeah, right.
Prior to the national launch, the eStore was tested on some 5,000 shoppers to help guide the design and development of the “ideal” on-line shopping site.
The site today features Brand Shop pages (dedicated shopping sections per brand, e.g. Pantene PRO-V), service options and tools for customized product selection, social media integrations and a rating & review section for shoppers to provide feedback on their shopping experiences.
P&G says there will also be a mobile phone application available soon, which will help shoppers purchase their favorite products at the eStore with photos from their mobile phones.
If I were Alice.com, I’d be a little worried.
@robin
I wouldn't worry about @Alice. Those boys from MAdison, Wisconsin are heading fast towards a $100+ million exit within the next 24-36 months. #YouCanQuoteMeOneThis
@AAinslie
Looks like it’s running on BigCommerce. Nice win for the guys!
Geez! What an “original” name sTore is! LOL!
So this means i can browse the products online and the company will deliver it on my doorstep for free?
The only thing Alice needs to keep fearing is other retailers like Amazon and MotherNature.com
The same reason a P&G retail store offline wouldn't do well is the same reason it won't be a big threat online. There aren't enough weirdos who only buy P&G brands to make it a big deal. Though I am biased in that I find most of their products to be pretty disgusting: profusely artificial and toxic.
Direct services are usually good for the consumer and build loyalty. And Internet provides the best platform for this. I'm really surprised more big names haven't jumped on the opportunity yet.
This is targeted at WalMart. P&G is sick of being squeezed to death on the margins by WalMart's pricing power. Will be curious to see how WMT punishes them in-store.
Agreed. Stores like Walmart and Target not only squeeze them on the margins, but also offer generic brand products for a lot cheaper. But since Walmart is probably the top buyer for P&G products, the e-store taking off will likely cause tension with Walmart to create more problems than it solves.
I used to advise a lot of FMCG manufacturers on their consumer strategies, and while every one of them would consider selling direct, they were ultimately all scared to death of the repercussions of dis-intermediating their retailers. Retailers have been beating up the manufacturers on their demands for lower pricing, higher trade spend, and declining shelf space long enough apparently. The manufacturers are going to start fighting back now. I don't see this site making a serious dent in WalMart's business, but imaging if P&G got together with Kraft, Nabisco, and Unilever and started selling competing brands on a single unified site. Now that would get some attention in Bentonville.
I fail to understand why anyone would shop at this estore.
My local Kroger offers better prices (when on sale).
My local Target offers better prices.
My local Wal-Mart offers better prices.
All within a few miles of my house.
Let's see, I can get only P&G products at the estore and pay $5 for shipping or I can get P&G products plus thousands of others at Alice for FREE shipping………hmmm. I think I'll stick with Alice.
I agree - I'll stick with Alice. Free shipping & other brands - though I wish they had a bit more in the way of organic dry goods and smaller brands.
Geez! What an “original” name eStore is! Their marketing team needs help!
Why don't you suggest something? It is in beta after all! :)
Alice is quoting p&g estore and is cheaper on most of the products. I assume Alice has signed p&g, otherwise they could not offer these competitive prices, right?
Dont you think Alice is co-operating with P&G, since P&G products are cheaper in Alice?