Retail Observer

RETAILOBSERVER.COM JANUARY 2016 74 C onsumer buying patterns are constantly evolving because of technology and lifestyle changes. As a consumer electronics brick and mortar store, what changes will you be implementing this year to keep up with trends to remain relevant in your market? It's challenging. Margins are constantly compressing. On-line competition grows. Consumers demand instant gratification. They want their time spent in your store to be a uniquely informative and entertaining experience. We live in a hyper-connected world that is bombarded with rapid and constantly changing technologies. If you don't keep up how long will it be before your business model is obsolete? Think about this. What do you believe your business represents in your market? Do you truly believe that consumers in your market know who you are and what you do? According to research*, 50%–80% of people when asked, could not identify an independent appliance/electronics (or home furnishings) store in their market. Potentially, there are two major challenges in play. One; How well are you keeping up with technology and consumer shopping behaviors? Two; Do the majority of consumers in your market actually know who you are and what you do? The greatest insurance package you can have to make sure that you are visible to nearly 100% of your market is to have the highest quality website and digital marketing tools possible. Think you can't afford it? You can't afford NOT to have it. Over 85% of consumers either begin their shopping on the web. If your website is not designed to automatically appear on the first few lines of organic (not paid for) searches, you may as well not have one. Furthermore, your website needs to have compelling content. Information that keeps your prospective customer there with product content, descriptions, features and most of all PRICING. About 80% of consumers surveyed said if the website they are on does not disclose product pricing, they move on. If you're worried that you might lose a potential customer because a price on one item may not look competitive, think about it. Would you rather lose a handful of perspective customers or 80% of them? In consumer electronics today there are far more categories than ever before. TV/Video, digital imaging, mobile electronics, personal entertainment, smart phones and tablets, internet devices, computers, home technology, fitness monitors and lots more. Unless you have really deep pockets you probably can't afford to represent all categories of CE in a quality way. How much expertise in reality does Best Buy deliver? These days, not a whole bunch. So to really stand out in your market and punch through the clutter you have to be #1. "But #1 is taken by so-and-so electronics", you might respond. Alright, so let's say they are #1. You don't want to be #2 if you can avoid it. So how do you gain #1 stature? EXERCISE: • Question: Who was the first solo non-stop transatlantic aviator? You probably know it's Charles Lindbergh. • Question: Who was the second transatlantic aviator? Odds are you don't know. All you remember is who was #1. • Question: Who was the third transatlantic aviator? I'll bet you do know. Yep, Amelia Earhart. So how come you don't know #2, but you do know #3? Because she was the FIRST WOMAN to fly solo across the Atlantic Ocean. Being a woman put her in a NEW CATEGORY. So, you remember her as the first. You can do the same thing. Put your mind to being #1 in a specific category and market that message loudly. Try to identify something in particular that is not being handled very well in your market and develop that. It could be a product category or a service, or both: Largest assortment of (product) with knowledge and service to back it up! Same day delivery Serviced in 48 hours or you don't pay Find something to be #1 at, and market that message aggressively. By the way; most of what I said regarding the whole "#1" thing came from a wonderful little book called The 22 Immutable Laws of Marketing by Al Ries and Jack Trout. *Research for an independent survey conducted by Retailer Web Services. CONSUMER ELECTRONICS TRENDS AND MARKETING CHALLENGES Jim Sendrak Consumer Electronics Trends Jim Sendrak is executive VP of consumer electronics and marketing for MEGA Group USA. He has worked in the retail business helping to merchandise consumer electronics for three notable national and regional chains. Sendrak currently helps the 1,700+ members of MEGA Group compete and profit in markets where "big box" retailers are so prolific. RO

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