Less Consumer Choice Often End Result of Down Economy

Posted by jim on February 26, 2009 under Consumer Experience, eCommerce, Economics | Be the First to Comment

Two weeks ago, Toys ‘R’ Us announced that it had acquired eToys.com (as well as BabyUniverse.com and ePregnancy.com).  While Toys ‘R’ Us claims that eToys.com will continue to operate as a seperate entity from toysrus.com, this acquisition is another blow to the consumer.  As smaller and mid sized toy retailers go bankrupt or get purchased, the consumer will see less and less choices.  With fewer companies in control of toy retail, there is less opportunity for product variety, new manufacturers, innovation, etc.  And, again, the consumer suffers.

It seems like the current situation with the American economy, coupled with the significant boost in regulations relative to the toy industry, is already resulting in, not the survival of the fittest, but the survival of the biggest.  Unfortunately, small toy manufacturers and smaller independent toy retailers may be the ones who end up suffering the most.  Hopefully, that is not the case in the long run.  Because if it is, the end game is one or two corporations (like Wal-Mart – hint, hint) in complete control of the industry.  When that happens, and it is a lot closer than you think, quality goes down, consumer choice goes down, and prices go up.