3 words come to mind here:
SHORT TERM GREED
(These comments are aimed at the mainstream "consumer goods" manufacturers. Not the high end and/or niche product manufacturers)
Been ordering and stacking/unstacking boxes in an out of a warehouse for 4+ decades. And, occassionally installing finished goods in customers homes.
The grown ups in the room are putting long-term strategies in place. The opportunists can’t see past the current P&L and balance sheet. I once asked a manufacturer why (the hell) they are putting their products out on the Internet? Response: "We can’t afford to lose the face time. Our competitors are out there so we have to be visual, too." Probably the dumbest answer I’ve even heard. Years ago, upon learning that a very prominent speaker manufacturer had just made the decision to go into Big Box, I called my rep who was enroute to my location and told him to turn his car around and head back home. I also told him that this was a strategy for a company that wants to be sold, not a long term plan. I was correct. And, a less than a year later he was fired and replaced with a "more efficient" (cheaper) way to "service" accounts.. (Didn’t end well for himl).
The industry converted respected hifi consultants who caressed their customers, educated them, and were good stewards of their customer’s money, into brokers, forced to compete with far more leveraged entities when model# and price became king. The "illusion of low price" of Big Box and bypassing sales tax (Internet sales) squashed the little guys. The loss of self esteem on the sales floor was a real issue. Clever marketing blurred the image between "specialty retailing" and mass distribution. As one TV ad once stated: "Our online store offers EXACTLY the same experience as an expensive dealer showroom." Overdistribution killed the "hifi culture" for specialty retailers who could no longer differentiate themselves from Big Box to attract first time, or price-conscious buyers. Our "budget systems" could beat up THEIR budget systems. The customer migrated to the "low cost solution" assuming they were getting the best bang for the buck, and never found out.
I refer to these Big Box and online sales as a "dead cycle". One (or, maybe two) and done. Specialty retail had the integrity to challenge what the consumer was looking for, often taking less money than what the customer was prepared to spend. But, also showed them what was possible with "better goods" and planted a seed for the next purchase. "You’re going to love those new speakers. If you want to try an outboard phono stage sometime, just let me know." Big Box and online doesn’t do this well. Or at all. Enthusiasm trickles down, and so does repeat business, upgrades, add ons, forming meaningful relationships, and cash. After all, "specialty stores" are just over-priced electronics stores with exactly the same stuff as Big Box -- just more expensive.
I remember in the "good ol’ days" that we’d run ads for salespeople and about 40 would show up. It was really cool to work at a hifi store. When hired, these guys/gals would show up on Day One with their own demo material (vinyl, cassettes, or CDs) and have a mature audio vocabulary already intact. You basically took them thru the product line up, showed them how to write a ticket and where the warehouse was. Things have changed. The industry did this to itself. Attempting to prop up an industry (or manfacturer) that is shooting itself in the foot is neither fun, or profitable.
I want to end with a statement that we had vendors who were fearlessly loyal to us and the specialty audio industry as a whole. And, still keeping the faith. Their commitments are still very much appreciated.