The Reason Crate and Barrel's CEO is not Worried about Amazon

In recent years e-commerce has become one of the fastest growing activities on the internet. Many new online retailers have sprung into the scene as well as retail giants. Apparel and other tangible items have been a huge success, however furniture has slowly been introduced into the e-commerce arena due to the size of items, but is quickly picking up momentum with websites like: Wayfair and retailers such as Walmart and Target.

Despite the fast growing trend of online shopping driving brick and mortar stores out of business , Neela Montogomery, 43, CEO of Crate & Barrel is not  concerned about losing business just yet to online retailers like the ones mentioned above including Amazon. According to Ms. Montgomery in the last three years Crete & Barrel did not have a social media platform presence, but today the retailer has amassed one million followers on Instagram. Ms. Montgomery has made it her mission to spend 50% of the advertising budget on digital media, which includes social media cites such as Instagram and Youtube.

Montgomery explained her confidence in sustained retail sales for Crate & Barrel in that they offer  in-home decor consultation services as well as 95% unique stylish and upscale home furnishings not found else were at attainable prices. Montgomery also explained that customer feedback is extremely positive and loyal customers are satisfied shopping in store and 47% shop on the Crate and Barrel website. According to Montgomery there is not much concern at this point, but she is continuously  consulting with retail data information systems regarding customer trends and behavior to make sure Crate & barrel is on course.

The relevance this story has to our marketing class is that it is obvious that Crate & Barrel has competitive advantage and they cater to their target market compared to online stores in the fact that they offer unique home furnishing products that are hard to find online or anywhere else, therefore forcing customers to purchase from no other than Crate & Barrel.

I selected this post, because I am a Crate and Barrel customer, I honestly appreciate their first class selection on items. I have been very happy with my purchases: De'Longhi coffee and espresso maker, Cuisinart perfect temperature programmable tea steeper and kettle along with many other purchases. Their customer service is second to none and I have found several unique items for my home and items to give as gifts. I agree Ms. Montgomery, I am among the many satisfied customers of Crate and Barrel.
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