By the way of listing its products for sale on the website LOOKS.COM, a manufacturer will get various advantages, and also some disadvantages. Obviously, the aim for LOOKS.COM is that the advantages overcome the drawbacks, so that the manufacturer will be likely to list its products in that way. It is a real dilemma for the manufacturer to list or not its products for sale on LOOKS.COM at a price lower than the Manufacturer Suggested Retail Price (MSRP). By listing their products for sale on LOOKS.COM, the manufacturer will be able to reach a larger amount of customers than he would in another way, that is to say he will get a larger customer base.
[...] The Asian cosmetics market: The “Looks.com” case study Questions 1. What are the advantages and disadvantages for a manufacturer listing its products for sale on looks.com? 2. How effective is Robbie Jessel's plan to position LOOKS.COM as a duty free retailer and/or to encourage manufacturers to pass along a percentage of the extra margin they retain (through selling to LOOKS.COM versus the distributor) in persuading manufacturers to list their products with LOOKS.COM? 3. If you were Jessel, how would you approach manufacturer and distributors to solicit their brands for listing on LOOKS.COM? [...]
[...] - Not only is LOOKS.COM a website, but it is a real kind of community. This will most likely enhance the loyalty of the customers, and therefore increase sales even more. Indeed, in cosmetics of the sales are repeat purchases. People must be satisfied. To do so, those people must be reassured, their questions must be answered, and they must be able to communicate with other people that sometimes have the same problems . This is the exact aim of a website community. [...]
[...] - The customers are brand loyal mostly, and looking for bargains. About 80% of the purchases are repeat purchases. Eventually, from a manufacturer's point of view, listing its products for sale on LOOKS.COM would be a huge opportunity to increase sales, focusing on the volume. Furthermore a manufacturer will, through listing with LOOKS.COM, reach a potentially huge customer base. As a consequence, considering those two elements linked together, it means that manufacturers will increase their profit margin and their sales volume in the same time, meaning a double effect on their revenues If you were Jessel, how would you approach manufacturer and distributors to solicit their brands for listing on LOOKS.COM? [...]
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