Aqualung's stance on e commerce

[scubafool]

All you'd end up with is a couple of places with compressors and lots of instructors teaching off of their tailgates.

I am trying to think of a downside.

Edit: OK, that was a little flippant, there would be downsides to that. But you can't tell me that the current setup (which is on it's way to being the old setup) is without it's problems either.

 

[hlsooner]

The market will take care of all of this. If traditional "dive shops" are not adding any value to consumers, then they will be supplanted by a source of air fills, and some way to connect instructors with students.

Likewise, in the future divers will probably get the gear that they want, based on a whole host of information sources like ScubaBoard, rather than just buying whatever the shop stocks based on their instructor's recommendations. This arrangement never served the customer best, and if it gets replaced by some new way of delivering (1) training, (2) gear, and (3) service, then so be it. The notion that the "sport" of diving is dependent on small dive shops overcharging for gear seems pretty far fetched.

 

[*Floater*]

Jan. 8, 2007: Vista, CA (DNW) --Recently a major industry stakeholder endorsed on-line gear sales and encouraged dive retailers to set up shopping carts to ‘embrace the future.’

Which major industry stakeholder are they talking about?

 

[mdb]

They are talking about PADI

 

[mike_s]

Which major industry stakeholder are they talking about?

It's in response to PADI making a bold news release statement at the time of DEMA towards the future of dive gear and training done online.


see http://www.divenewswire.com/NewsITems.aspx?newsID=8332&newstitle=PADI Explores the Future of Diving Online

 

[Penopolypants]

Since my LDS also sells online, how exactly am I going to contribute to their loss of business by ordering online from them?

Also, who are these online-only stores that are putting the brick and mortar shops out of business? I know of exactly one e-tailer (joediveramerica) that isn't also an LDS....even Leisurepro has a brick and mortar store.

BTW, leisurepro operates in the most expensive city in the country. So the "warehouse means lower overhead means undercutting the little guy" argument falls pretty flat.

So, who are these people? I'd like some specifics, please.

 

[String]

Cant see the problem with dive centres vanishing - if they dont adapt thats what happens.

There will always be a market for training therefore there will always be market for dive shops, likewise there will always be a demand for fills.

What these shops need to do is realise that if they want to capture MORE than just this market they need to adapt, accept the internet and move forward. Those they do will survive, those that dont, wont. And i have no sympathy for them.

 

[MikeFerrara]

All the manufactures should require the LDS to stock broad and deep on all of their popular items. That puts two out of the three main reasons divers buy on the side of LDS. If they can add a couple of the lesser customer values, They have the high ground.

Some try real hard to do just that and the last thing a retail vusiness needs is somebody forcing them to stock a bunch of stuff they can't sell.

 

[MikeFerrara]

Catherine dive shops are where people go to get trained. If they don't sell gear they close their doors. All you'd end up with is a couple of places with compressors and lots of instructors teaching off of their tailgates. No matter what scubaboard and it's advertisors will have you believe, we need real dive shops to florish.

That's just it, so many dive shops do a poor job of teaching diving and they do a poor job of meeting retail needs. Forcing both to exist in the same place is exactly what isn't working. Let those who are good at teaching, teach and those who are good at retailing, retail.

Why do we (or I) need real dive shops to florish?

 

[SoggyShoes]

This whole notion that Aqua Lung is against “grey market” sellers really irks me:

“We also need to know and recognize the Internet’s challenges. We were the first diving equipment manufacturer to employ Net Enforcers to assist in reducing “third party” or “grey market” shipments from unauthorized sources.”

As has already been pointed out they are actively supporting and supplying the grey market and the best part for Aqua Lung is that they don’t have to pay out any money for warranty support after the sale. This means even more money for Aqua Lung! Lots of manufactures and even whole industries have successfully restricted online sales. When was the last time you saw an unauthorized new car dealership! I have yet to hear about those darn “grey market” Chevrolets and Hondas messing up the market and destroying the dealerships! Bose Electronics and Dyson vacuums have shown that they can successfully regulate their products and prices in industries that allow for open free market sales.

I think what really gets me is that Aqua Lung thinks that we (and the local shop owners) are all idiots in their claiming an inability to control unauthorized sales. Aqua Lung knows exactly where every product they manufacture is sent for distribution by serial number. It doesn’t take Sherlock Homes to figure this one out. I have no problem with Aqua Lung’s decision and statements… if they were true. If Aqua Lung wants to limit their products to only in store sales then fine, but actually back the talk up with action! Make it so! Actions speak louder than words.

“Let’s not kid ourselves. When companies talk about or endorse e-commerce in the scuba industry it means selling scuba gear on-line, which has not and will not create a level playing field for retailers as some have suggested. In fact widespread endorsement of on-line sales may drive more sales to the established Internet players. The single most important objective for our industry should be to get more people into professional dive stores. Offering or promoting on-line equipment sales will not do that.”

By choosing not to control unauthorized sales Aqua Lung IS offering and promoting on-line equipment sales. Aqua Lung can create a “level playing field” with the same price controls that Bose and Dyson employ. With Aqua Lung’s current action of playing both sides of this argument the Brick and mortar only stores are NOT able to be on a level playing field. These stores are being crippled by Aqua Lung’s allowing non-authorized sales at a significant discount. I think that they are able to get away with this for the time being because of their large market share and name recognition, but their current actions could change this.

They need to either eliminate unauthorized sales or don’t, but stop pretending that they can’t control it. In my mind, this more than anything erodes the credibility and confidence in their company and products.

Soggy