What the Tableware Industry Can Learn From Rupert Murdoch's Takeover of the Wall Street Journal
This past August Rupert Murdoch's News Corp. captured the crown jewel of the publishing word by purchasing The Wall Street Journal from the Bancroft family for $5 billion. What does this event have to do with us in the tabletop industry? I propose that there is a lot the industry can learn from Murdoch's coup. The main lesson is that investing in technology-and in particular online operations-is crucial to the industry's success. Otherwise, home goods companies that embrace technology will use the Internet to steal our customers, thereby cutting our sales and potentially leaving us with the same employment status as the Bancrofts but without the $60 stock purchase price they received.
That even a large company with massive resources like The Wall Street Journal didn't embrace technology and the Internet fast enough should give us urgency in not making the same mistake. The financial news services company Bloomberg L.P. was the first to take advantage of this neglect by the Wall Street Journal. Steve Coll in The New Yorker states that "as the Bancrofts dozed... Michael Bloomberg erected a skyscraper of a company on Dow Jones's front lawn. He did this by pioneering the use of new technologies to profitably speed up and deliver business information ... This ultimately laid [The Wall Street Journal] bare for Murdoch, a master of technological change."
This explanation talks to all of us in the tabletop business. You can choose to be either a Murdoch or a Bancroft. Now, some in the tabletop industry may not wish to be compared to Rupert Murdoch; well in that case, fancy yourself as a Bloomberg.
The majority of tabletop companies (manufactures and retailers) are small, and large retailers like Wal-Mart, Pottery Barn, and Crate & Barrel are making major inroads in the online marketplace at the little business's expense. These companies will have a Murdoch-like effect unless companies preemptively grow their online business. The goal should be for online sales to account for 50% of net sales. (This also help insulate a business from local changes in the economy.) A website should sell all the items in the store-and more. For inspiration on how to set up a successful website, check out websites in other industries such as HomeDepot.com, NetFlix.com, and the fashion site, Glimpse.com. Take advantage of blogs, customer-submitted pictures and thoughts, and video. The majority of business will most likely come from bridal registries, so signing up each bride is a good idea, even if she's marrying a Murdoch in Australia.
Even if you have an aggressive website plan, this doesn't mean you should stop investing in other mediums. When Murdoch bought the Wall Street Journal, he didn't stop publishing it. A company must continue a printed relationship with customers, which drives 'flick-to-click' shopping. For example, a study by the credit-checking agency Experian found that 80% of people that shop at home found the item in the printed catalogue and then bought it online. Investing in a powerful website may seem overwhelming at first, but history shows us that investments in technology pay off. At the very least, If you see other companies that are acting in the antiquated Bancroft fashion, maybe you should borrow another a page from the Murdoch book: buy them out.