Retail Observer

RETAILOBSERVER.COM AUGUST 2017 52 I t's undeniable that the CE landscape has changed significantly in the past decade and while it will continue to evolve ever so, what's important is that you not abandon the space but embrace what's ahead. The physical store remains a primary consumer touch point and while the "show rooming vs. web rooming" debate goes back and forth, no on-line website will ever replace the see, touch and try in-store experience. The benefits of carrying CE products don't stop there — new technology drives engagement of all types but attracts the important millennial customer as well. It should also be remembered that CE rounds out your brick-and- mortar assortment with appliances, furniture, bedding, and perhaps outdoor products. Below are some of the benefits of carrying CE products. SEE, TOUCH AND TRY In consumer electronics, it is especially important to have these products physically available in your store(s). It's one thing for a consumer to hear about 4K Ultra HD but it's another for them to actually see it in person. While the customer is staring in awe of the picture quality, it's a good time to demo smart TV and have them check out the latest technology in OLED. Amazing picture quality right? What may not be so amazing is the sound quality. Enter home theater and the endless component options in this category. From a 2.1 channel soundbar/sub that fills the room to expansive multi-room audio to full-on Dolby Atmos home theater systems, I can say with confidence no website will be able to deliver as well as this in-store experience. FOOT TRAFFIC AND MILLENNIALS For nearly everyone in the family, when they think of buying a new TV, they'll go on-line first to research but ultimately want to "kick the tires" on a product like this. The benefit here is more foot traffic, as CE is a destination category sought out by the consumer. Having the latest and greatest CE products available will help drive interest and consumer engagement. Furthermore, the replacement cycle for TVs on average is 3-5 years, which increases repeat customer visits. Let's not forget the millennial shopper; this younger genera- tion (those between the ages of 18-34) intensely crave consumer electronics technology. Attracting this segment is important not just today, but creates the opportunity to capture a customer for a lifetime. CE ALONGSIDE APPLIANCES, FURNITURE, & BEDDING It's certainly my belief all these categories can coexist within the brick-and-mortar environment, but CE is often the category that gets overlooked in floor space and assortment portfolios. I'm certainly not stating that to be successful in CE you need to dedicate 1/3 of your floor space to the category and assort 80+ sku's. Rather, with the right approach and assortment of premium products, you'll find it needs to be a staple on your floor. I'll go on to state that if you're selling a customer a kitchen package or furnishing a room in their house, there's a chance they'll have a need to upgrade/replace their existing TV/home theater at that time, or in the future. Painful is the day when a consumer purchases their dream kitchen, appliance or furnishings solution with you, but has to be walked down the street to a competitor to pick up their home theater needs and other CE products. In addtion to the benefits above, there is connected home arena which is expected to be a $490 billion-dollar business by 2019. Consumers will be destined to shop for and seek out professional assistance to guide them through this journey, which is a subject worthy of discussion all on its own. For all these reasons (and more), I encourage those brick-and-mortar retailers to embrace the CE product categories and let them work in your favor. Doug Wrede Director of CE for Nationwide Marketing Group Doug Wrede Consumer Electronics Trends RO WHY CONSUMER ELECTRONICS IS GOOD FOR BUSINESS

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