Is it too late to learn Chinese? No sir and what has that go to with the Internet and disintermediation. China makes things? They make lots of things. They ship these things to Wal-Mart, Best buy, Radio Shack and just about any retail store you can walk into. Now hold that thought for a minute.
Last week I searched the Internet for a USB to AC adaptor-the kind of adaptor that you use to charge your mobile phone and your iPad or equal. These adaptors sell for more than $25 in local retail stores. I found an on-line store where I could purchase the adaptors for $5.95. I bought three and the shipping charge was $4.50. They arrived today shipped from China. This purchasing pattern marginalizes the retail stores. Who needs a Best-Buy or a Wal-Mart when you can buy the product directly from the real manufacturer in China and get it shipped to your door for 70% less than the cost of purchasing it locally; not counting the hassle of driving to the store, finding the product, buying it and driving home.
Now let's put the thoughts together. The Internet spawns disintermediation- it kills the middle man where there is no real value added. Wal-mart, car dealers and Best buy are intermediaries. Of course, this does not work for all products, but it works for USB to AC adaptors and based on this single anecdotal example I am sure it works for many more. Watch out for the BUY DIRECT FROM CHINA ADS. Don't laugh too quick.They laughed at Dell when he said people will buy computers on-line, sight unseen and and pay in advance. Sears was a large retailer, at one time too!
Disintermediation. A valuable concept.
No comments:
Post a Comment