“Pure-play” Internet companies were once the darlings of venture capitalists and Wall Street investors. Then, alas, the glow faded and reality set in. Since last year, pure-plays — companies created specifically to take advantage of rapidly advancing Internet technologies and growing numbers of Web-savvy consumers — have had a tough time. Now, with the novelty of Internet shopping on the wane and Christmas looming ahead, everyone wonders whether pure-plays are finished as a viable online business model. If so, what will succeed on the Web in the months and years to come?

Pure or Impure?

One thing is certain: Marketers, whether pure-plays or so-called “multi-channel” sellers, have learned that consumers will interact with almost any retailing channel that they find comfortable, convenient and cost-effective. That could be a print catalogue, a brick-and-mortar store, a telemarketing call or a Web site. In other words, the Internet is becoming a channel, one that performs different functions at different times, depending on the particular need of the consumer. One day it might be used to gather information about prices, technical specifications or new products. Another day it might be used for shopping for merchandise, airline tickets or hotel rooms. The fact is that consumers did not abandon their shopping malls and neighborhood stores as the Internet blossomed. They simply incorporated the Internet into their shopping adventure.

For instance, someone shopping for a new SUV can log on to Autobytel.com (Nasdaq: AVTL), research models and prices, and perhaps send a referral to an auto dealer. He can then hop into his car and drive to a dealership to kick the tires, do a test drive and negotiate a deal. Someone else may want a new DVD player; he can surf CNET.com (Nasdaq: CNET), gather a file folder full of product specifications and prices, and head for the Best Buy three blocks away to make his purchase.

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