I think your reasoning suggests that brick-and-mortar stores will never be fully obsolete.
As a manufacturer, I don't see how shutting down my online presence would benefit me. Simplified, there are three types of customers. The first shop in traditional stores, find what they like, and purchase it. The second browse and purchase online, without ever seeing the physical merchandise. The third browse traditional "showrooms," then proceed to buy from a cheaper online retailer.
With an online and traditional presence, manufacturers capture all three types of customers. If you limit yourself to traditional stores, you force the third type of customer to purchase in-store, because there is no cheaper online alternative. But those customers would buy online anyway, so you gain nothing. And you've completely lost the second type of customer, who only shops online. A simplified model, perhaps, but the principle stands.
I'm honestly not too worried. I like going to the mall. My mother practically lives at Target and Wal-Mart. Many of us like the physical act of shopping, enough to sustain physical retail outlets. Profits may shrink, but that's the free market. You've got to keep innovating to stay in business.
I think you're not considering that it's not only the brands that can make choices; it is the brick-and-mortar shops too. They can choose not to sell some brands, or to give them bad placement. Especially big retailers have a lot of leverage with brands.
As a manufacturer, I don't see how shutting down my online presence would benefit me. Simplified, there are three types of customers. The first shop in traditional stores, find what they like, and purchase it. The second browse and purchase online, without ever seeing the physical merchandise. The third browse traditional "showrooms," then proceed to buy from a cheaper online retailer.
With an online and traditional presence, manufacturers capture all three types of customers. If you limit yourself to traditional stores, you force the third type of customer to purchase in-store, because there is no cheaper online alternative. But those customers would buy online anyway, so you gain nothing. And you've completely lost the second type of customer, who only shops online. A simplified model, perhaps, but the principle stands.
I'm honestly not too worried. I like going to the mall. My mother practically lives at Target and Wal-Mart. Many of us like the physical act of shopping, enough to sustain physical retail outlets. Profits may shrink, but that's the free market. You've got to keep innovating to stay in business.