Procter & Gamble (P&G) have just launched a new site in the US that sells all of their branded products and runs in direct competition with its retailers.
This move will hardly please their retailers, but then brands weren’t exactly pleased when retailers launched their own brands to compete with their brands. Selling direct might enable brands such as P&G to sell at a lower price should help them to compete with retailer own brands.
The service is currently only available in the US and it is not clear from the title (essentials.com) or the content that you are buying direct from P&G, the only clear indication can be found in the terms and conditions. If the site is a success then P&G might start further promotion of the site and that savings can be made from buying direct.
P&G are not the first brand to sell direct to the consumer via the internet by a long stretch, clothing brands such as Nike and Levi’s have been doing it for years, incidently both have just made improvements to their online shops, including further product availability.
The success of various brands and the current climate is likely to inspire other brands to offer the same service in order to cut prices and increase sales.
