Wal-Mart Stores, Inc. (NYSE:WMT - News), with a view to strengthening its online business, has gone a step ahead with the announcement of the launch of ‘Get on the Shelf,’ a kind of video contest where the winner can sell its product directly on Walmart.com and at Wal-Mart stores.
Akin to television shows like American Idol, Wal-Mart has started this ‘Get on the Shelf’ initiative, where the company owners will not be obliged to face the buying regulations and can get a chance to launch their products at Wal-Mart, and thus reach out to millions of shoppers nationwide.
As announced by @WalmartLabs, the participating companies can choose any product from any category currently covered by Wal-Mart including housewares, electronics, toys or apparels. Subsequently, the companies can make a video of their products covering their new features and send them online to Wal-Mart.
Wal-Mart already has 60 participants for this video contest with an array of different interesting products from the contestants like a new hot sauce, cube game, and iPad pillow. The videos of the products sent online will be initially screened by Wal-Mart and after the first round of public voting, 10 finalists will be selected.
After the second round of public voting process, Wal-Mart will determine the top three products, which will be sold on Walmart.com and at its stores. Wal-Mart will also feature the winners’ products on the home page of Walmart.com and will grant a good shelf space to the products in selected Wal-Mart stores across the country.
Through this initiative, Wal-Mart will be able to discover some extraordinary products which might not have reached the markets due to some buying barriers. In addition, it will encourage its online business.
Wal-Mart, which is the sixth-largest Internet retailer, has been trying to build Global eCommerce for a year. It has also made investments in capabilities and talent, and has further strengthened its position through the acquisition of small Internet specialty companies. The company has been persistently pursuing its expansion plans in new markets such as China and Brazil, including a minority stake in Chinese Internet retailer Yihaodian.
Moreover, Wal-Mart has initiated a new unit called @WalmartLabs, through which it will be able to augment its sales from the proliferation of smartphones and social networking. In addition, Wal-Mart acquired the Vudu streaming video service and technology company Kosmix, demonstrating its commitment to e-commerce and goal of offering customers a unique shopping experience.
Wal-Mart has now been expanding its online business, and has also started inducting the more experienced people of stores of U.S. in charge of the websites in those countries. In addition, Wal-Mart has e-commerce teams in developed markets of U.S., U.K., Canada and Japan, which will report directly to the senior store leadership in those countries.
Wal-Mart, which faces stiff competition from the likes of Target Corp. (NYSE:TGT - News) and Costco Wholesale Corporation (NasdaqGS:COST - News), has a Zacks #3 Rank, implying a short-term Hold rating. Over the long-term, Wal-Mart has a Neutral recommendation on the stock.
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