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PERSPECTIVE By Ellen Neuborne April 12, 1999


Why Famous Brands Often "Fracture" When They Hit the Web
Too many retailers rush their wares onto the Net without making sure that customers will get the experience they're expecting

There's a nasty new ailment stalking the would-be E-commerce giants. Traditional retailers with well-established brand names are especially vulnerable. It's called brand fracture. And it's the result of the spills many retailers take when they hustle themselves out on the World Wide Web without keeping the promises made to shoppers in the real world.

The pressure on retailers to get their stores online is intense. Wall Street analysts and investors are pestering retailers for a Web presence, so much so that Home Depot, preparing to transform its modest informational Web site into an E-commerce site next month, has placed its director of investor relations on the site development team. "You can't go to an investor conference without the subject of E-commerce coming up," says Kim Schreckengost, vice-president for Home Depot's investor relations.

TOUGH TO REPLICATE. But Home Depot is a prime candidate for brand fracture, experts say, based largely on the strong brand imagery of its traditional stores. Home Depot, in the real world, is all about vast selection and knowledgeable, accessible sales staff. That brand promise is going to be a bear to replicate online, says Roger Black, whose consulting firm specializes in brand identity in new media. Home Depot sells about 50,000 different kinds of products in its stores, a feat Schreckengost concedes they are not ready to try virtually. And morphing human service into virtual service, especially in an area that often requires a lot of explanation -- like home improvements -- won't be easy. When a retailer finds itself making compromises on its core brand elements, it's time to worry about brand fractures, says Black. "That's when you say: Am I blunting my message? Am I confusing my consumers?"

 


L.L. Bean slipped badly when it put only a selection of its most popular items up for online sale
 

Schreckengost says Home Depot is carefully managing its new Web site to avoid these pitfalls, creating a searchable database of home-improvement instructions, for example, to be sure no question goes unanswered. And it's making plans for cybershoppers to eventually be able to connect with Home Depot online staffers for more help. "We are keeping close tabs on what our consumer wants to see in our online venture," she says.

BROKEN PROMISE. But as with any online retail store, the company risks disappointing its visitors. It wouldn't be the first time. L.L. Bean launched its E-commerce Web site in 1996. Brand fracture hit almost immediately. In an effort to move carefully and test the online waters, it put only a selection of its most popular items up for sale. "That's a break in the 'everything's for sale 24 hours a day' promise," says Jim Sterne, author of the book World Wide Web Marketing. "That's a big reason why people might choose L.L. Bean." Bean has made the fix, now offering the sale, if not an online photograph, of most of its merchandise via the Net. But it lost valuable shoppers while it recovered from its brand fracture, says Sterne. "Those were missed sales."

 


Kmart wisely makes it clear its site is about fitness, health, kids, and clothes -- not lawn mowers
 

For some companies, the way to avoid accidental fracture is early decision-making. If you can't be the same online, says Chan Suh, CEO of Agency.Com, make that call to be something slightly different and communicate that to your consumers clearly. "What looks stupid is when you are something different online than you are offline, but you're not being up-front about it," says Suh. Kmart, he says, has done a fine job of crafting a site aimed at just a slice of its consumer audience -- young women and mothers. "You go to that site, it's clear up-front this is a site about fitness, health, kids, and clothes. This site is not about lawn mowers." By creating a niche Web site, Kmart avoids some consumer disappointment, he says.

Others have made the transition to online fracture-free, thanks to a careful understanding of consumer expectations. Gap Inc. designed its site with consistency as a primary goal, says Rebecca Weill of Gap's marketing department. "We want to replicate the things the Gap is known for," she says. The design of the site imitates the clean, almost neutral look of stores. The display of clothing is similar. The majority of goods in the stores are available via the site, says Weill. And Gap is making its entertaining series of dance-themed ads available online for shoppers to enjoy. "You have the ability online to add a game or some other fun virtual thing to do, but that can't be your focus," she says. "You have to remember what the customer is coming to you for," she says. That's the backbone of an unbreakable brand.

Ellen Neuborne is Business Week's marketing editor.
Have a question or a comment? Let her know at ellen neuborne@ebiz.businessweek.com


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Ellen Neuborne is Business Week's Marketing editor and a regular Perspective columnist




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