P&G Launches Online 'Lab'

Consumer products giant Procter & Gamble is to introduce a web site selling its products direct, and will use the site to observe and analyse how shoppers buy, and how they react to ads and other promotions.

The company has a limited ecommerce offer to date, partly at least due to the inappropriateness of low ticket, relatively bulky items like toiletries and household goods for web sale. However in August CEO Bob McDonald hinted that the company would increase its online sales 'substantially' over the next few years - they currently account for only $500m annually, equivalent to 0.6% of 2009 sales of $79bn, according to Reuters.

The 'eStore', to be run by e-commerce provider PFSweb Inc, will sell to US customers only, and will initially be available to a test group of 5,000 consumers, prior to a full-scale launch in the spring. Post and packing will initially be charged at a flat rate of $5.

According to www.bostonherald.com , the store is being positioned as a consumer research 'lab', results from which will be shared with the retailers who currently constitute the major distribution channel for P&G's products.

Web site: www.pg.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.