Walmart to open shelves for video contest

Walmart has highlighted the internet’s potential to change the way companies source goods by inviting entrepreneurs to pitch their products in a video contest that will bypass the strict protocols of its buying department.

The winning product will be sold at the retailer’s US stores and online after an internet vote, reminiscent of television shows such as American Idol, in which members of the public will be asked to choose the best pitch uploaded to a Walmart website.

Called “Get On The Shelf”, the initiative by the world’s biggest retailer by sales will connect the winner to one of the most lucrative customer bases in global retail: Americans spent $262bn at Walmart’s US stores in the past 12 months.

The move points to how a growing number of companies are using web-based “crowdsourcing” to find business partners, products, technology, design ideas and even capital, including Procter & Gamble, Dell and Lego.

Venky Harinarayan, senior vice president of Walmart’s ecommerce operations, said: “For a long time, the ability to get a product into a retail store was at the sole discretion of the store buyer. Today, we are removing these barriers by giving anyone a chance to launch their product at Walmart.”

Access to Walmart shelf space normally requires navigating the buyers of the retailer’s merchandise operations, a process that even some large vendors describe as intimidating.

Contestants can submit video entries until February 22 in any product category that Walmart currently covers.

The winning product will be chosen through two rounds of voting in March and April and will be sold at some of Walmart’s nearly 4,000 US stores and on Walmart.com. Two runners up will also be sold on the website.

Entries accepted before Wednesday’s official launch included an ePillow made for carrying the iPad and Pugz boots for dogs.

Walmart often influences the specifications of the products it buys and the company says it can help the winning entrepreneur to ramp up its production capacity.

The retailer declined to comment on how it would share revenues or profits with the winner.

“The idea that there is an easy process to present your product is going to be tremendous,” said Mike Cockrell, chief executive of 8th & Walton, which advises companies on selling to Walmart.

He said many potential suppliers found approaching Walmart difficult: “Just to find the correct buyer, schedule an appointment, to understand the expectations around an appointment. Does the buyer need a form filled out? Do I need to provide samples?”

Critics of crowdsourcing say it can exploit those submitting ideas, who are not always financially compensated for their suggestions and can undermine traditional consultancy business.