Speaking of disintermediation as a marketing communications challenge (as we were, just a couple of weeks ago in class)….here’s a great example. AdWeek has an article about a new breed of cosmetics companies that market directly consumers. As Julie Fredrickson, the co-founder of the new Stowaway brand explains in the article, the sizes of product currently on the market make them hard to afford and hard to use up before their expiration date.
“Our attitude was we don’t need to leave room for Sephora’s margin; we can just sell it to you directly so that it can be half the size and half the price.”
This entrepreneurial move not only affects traditional retail channels, but spending on advertising as well: “Rather than spending big dollars on traditional advertising, Fredrickson and Crowley have focused on earned media and building relationships with mom and professional blogs.”
What are the benefits of disintermediation? Does it also present new risks? For whom?
Full article here: