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Will the high-tech perfection of shopping mean the end of shopping? And what will Americans do with themselves when there are no endless holiday sales lines in which to stand? Of all the error-prone human activities that digital technology is working to streamline — searching for love, diagnosing illness, finding driving directions, racing around in search of a good deal may be one of those we miss the most. As crazy as it sounds, I think several electronic business models are waiting to happen, or have started happening.

Search Engines
Think about what's happening with search engines. Late last year, Bill Gates announced that Microsoft's MSN search engine might give away cash or software to entice people to use the site. That's big news! Actually, Yahoo and Google are already exploring that idea, although they are relying on other companies to do it for them. A pair of online newcomers, Blingo.com and GoodSearch.com, license search technology from Google and Yahoo and earn a commission from the major search companies for any ads that visitors click when they are on the Blingo or GoodSearch sites. Both sites give away portions of their revenue as prizes or as donations to the users' favorite charities. Another site, Ebates.com, returns a share of their commission to consumers who buy goods online through the site. Check out Forester Research to view the latest statistics and trends in the world of search engines. According to Forester Research, Google continues to dominate the market and has increased its share from 31 percent to 41 percent of all searches in the last two years. Yahoo is holding steady in second place with about 20 percent of all searches. People who are drawn to giveaways and promotions are less valuable to marketers because they're more interested in the cash or prize than whatever it is the marketer is selling. You'll always get people who are willing to become your customer for a bribe but it's a pretty expensive way to get customers who might not be qualified for your business. So beware the next new "hot" business model.

The End of Shopping?
Several "authorities" are now predicting the end of shopping as we practice it today. That would spell the end of going into a cookware or gourmet store, falling in love with a new set of gleaming stainless steel cookware, and getting a sweet deal on the cookware of your dreams.

"The salesman approached me and said that if I bought the 10-piece set today, that he was prepared to throw in a one-and-a-half quart saucepan for free. I was tempted by the sale price and the free premium of this sweet deal, so I bought it. I felt euphoric because I'd beaten the system" — that's one of the pleasures that electronic buying can't buy. The presence of a human. Being with a person, and making a connection.

There is technology on the way that the cell phone companies are working to develop that will take all the risk out of comparison shopping. This "Wizard of Oz" invention will scan a product's bar code, instantly access and search databases on the Internet, and tell the user if a similar item can be purchased at any nearby stores for a lower price. Talk about making a salesperson nervous. Armed with such definitive information, consumers will not only have the upper hand over even the craftiest retailers, they'll also have the one and only hand, and profit margins could shrink accordingly. The best price will be the only price and bargain hunting will be a hunt no more. Should this "shopping phone" fulfill its promise, deep discounts will become standard and universal, and stores will have to seek to gain an edge in less-familiar ways.

2005 Review
The year 2005 ended with a bang. The preliminary sales figures are in and electronic shopping rang in another big increase. The buying habits of U.S. consumers as reported by the National Retail Federation have been finalized in each sector for the year. Total sales in U.S. retail stores, by sector (in billions) are as follows:
Food & Beverage Stores – $498.151
Building Equipment & Supplies Stores – $303.071
Warehouse Clubs & Superstores – $247.285
Clothing & Accessories Stores – $189.997
Discount Stores – $128.272
Furniture & Home Furnishing Stores – $103.781
Department Stores – $90.463
Sporting Goods, Book, Hobby, & Music Stores — $80.062
Jewelry Stores — $27.424

The Future
What does the future hold for strictly land-based retailers? Will electronic shopping with their just-equal deals (no more good deals, or bad deals, simply equal deals) and efficient transactions be enough for shoppers? Once upon a time, shopping was fun. After all, deep down, human beings are still creatures of the bazaar with a restless desire to haggle and finagle that cuts across cultures, and the centuries. Outsmarting the salesman and beating out other customers is a primal survivalist drive that links modern shoppers with the ancient Turks. It's a contest we lose as often as we win, but when we do win, it makes us feel alive and gives us something to boast about to friends.

Shoppers today are being moved away from the shopping bazaar and being bombarded with new technological streams of communication. Everyone is attempting to influence them with information about price comparisons or through the new blog culture and market-driven mainstream media. Recently, I ran across a new blog — pinkisthenew blog.com — that began as simply a personal creative project. Then other bloggers began linking to it, and now it is a destination for an average of more than 70,000 visitors a day. It's best known for snappy, catty, funny comments about paparazzi photos — Brad goes for coffee, Britney buys gas, etc. Now, this blog has done a deal, and it seems that "Pink" related merchandise is about to appear. Think about the possibilities of creating a delightfully immediate blog for your brand. Would it help your business?

U.S. retailers registered some $65.2 billion in housewares sales in 2004, a 4.7% gain over the previous year, according to the International Housewares Association 2005 State-of-the-Industry (SOI) Report. The average company sales for survey respondents grew 13.5% in 2004, continuing a five-year pattern, according to IHA. Kitchen and household electrics accounted for more than one-third of company sales. Global housewares sales in 2004 reached $282.5 billion, up 6.4% from the previous year, according to the IHA. Any price pressure on consumers was typically at the lower end, and the environment continued to be very strong for medium- to high-priced products.

New data in the 2005 SOI Report showed continued industry consolidation and the respondent's three largest customers were responsible for an average of 43.4% of sales, up 3.6% from 2002.

2006 Action Plans
My suggestion to marketers for their 2006 action plans are as follows:
1. E-mail promotions may be a sign of things to come on the Internet. Staples sent a pre-Memorial Day e-mail blast to customers showcasing an online offering of 22 new items in furniture, seating, and lighting. Good idea!
2. Search engine promotions are gaining steam. Blingo.com randomly gives away iPods, PlayStation game consoles, and other items to get people to use their site. GoodSearch.com sends donations to schools and nonprofit groups on the users' behalf.
3. Use the expertise you've gained from technology and finance to handle your growing business profitably.
4. Create a blog and turn it into a brand. Homespun blogs that tell interesting stories about and by cooks' experiences in the kitchen and with their recipes can position your company as a scrappy Internet outsider and attract an audience of cooking enthusiasts.
5. Read innovative business books. Two of my favorites from 2005 are: The Tipping Point by Malcolm Gladwell, which discusses how and why certain products and ideas become fads; and The Seven Habits of Highly Effective People by
Stephen R. Covey. This is a new edition of the author's principles for solving personal and professional problems.
6. Read the best book of the last several years on how to deal with change. Who Moved My Cheese by Spencer Johnson about effectively dealing with change in your personal and professional life.

Marshall Marcovitz is the founder and former CEO of the CHEF'S Catalog, a leading Internet shopping site. Currently, he is a lecturer, a university professor, and a marketing consultant. He can be contacted at mmmellow9@yahoo.com.