To: MoneyMade who wrote (50159 ) 2/1/1999 8:10:00 PM From: QuietWon Read Replies (2) | Respond to of 119973
Money: Why PRFM plunged today & likely prospects (a few repeats + own ideas): 1. CEO resigned - overlooked in light of web site launch 2. Stock rose too much, too fast 3. Fragrance market on-line FRAGMENTED - anyone see my post on a partial listing of how many sites out there? 4. So you say PRFM has brand name, BUT, don;t know 'bout you, but when using Yahoo, I started to notice the advertisements - always for fragrance_counter.com <--- this site is owned by ALU ! ALU is the leader ! and i find it hard to beat the leader on day one, in a fragmented market 5. as it did not rise much and hold, became not much movement which caused people to leave b/c: (1) better opportunities elsewhere (2) some panic 6. mid-later in day, on-line brokers doing well - you think i want yo stay in a non-moving stock and miss the gains 7. mid day - some realized there were other fragrance co's - EROXC had news and didn;t move initially this a.m. - i mentioned it very late last night - and got lucky with it having news. Guess what? that news was significant - EROXC's product to be sold on the #1 fragrance site -- ALU ! 8. A few persons posted, why buy it on-line if its only a few $ cheaper. As trader's likely you don;t care about it. People go to the store however b/c : (a) price not much different (b) try different colognes/perfumes - u have to know what u want to buy in the web (c) social aspect/the experience of going to the store (d) back to cost, who pays for the shipping?? (e) reason why lower priced items not discounted that much are: 1) lower priced to begin with 2) harder to cover fixed costs on lower priced goods <-- MAYBE SOME ANALYST WILL EVENTUALLY FIGURE THAT ONE OUT 9. as pointed out couple of posts back, how much perfume can you buy? sure, compare it to a computer, that's only one item. But, there are several accessories and upgrades and software, and ... for computers. And go back to #8 talking about covering fixed costs. Other conscientious thoughts, feedback welcome 10. what % of perfume sales are bot by men for women? what % bot by women for themselves? a lot of women, especially those in their 20's (and in France - personal experience seeing them and picking one up) like the experience of going to the store - women like to shop So, any co that closes all it's retail doors for perfume, make up etc is crazy, imo - i-net is part of the retail distribution strategy but not the entire strategy, imo Again, thoughtful feedback welcome