Is Specialty Retail Going the Way of Home Milk Delivery?
I did something 21st century mundane the other day: I shopped for an iron. Which means I never left the chair in which I’m presently seated. Our old steam iron (a wedding present from thirty years ago?) died and so I did what we would all do: Googled “steam iron reviews” and began poking around. Within minutes, I had narrowed down my choices regarding brand, preferred features and price range. I then checked reviews of people who had gone before me and actually purchased the models in which I was interested. I decided on the model I wanted, and found it available online and at Target and Macy’s. I had a credit on our account at Macy’s. A couple days later, my wife visited her sister in Portland (which has no sales tax) and picked up the iron there. (It’s a Rowenta–which I recommend.)
Of course, there was a time, not so long ago, when I would have actually “gone shopping” for the iron, spending time visiting a store or two and maybe asking a few friends for their opinions.
Please cover your mouth when you yawn.
One more. A few days ago, my sister e-mailed me and asked which Blu-ray Disc player she should buy. Within minutes, using the techniques virtually identical to the ones described above, I narrowed it down to two recommendations (a Sony PS3 or a Samsung BD-P3600).
The reason my sister asked me–instead of someone else–about Blu-ray Disc players is because I have been deeply involved in the consumer electronics business for over thirty years, specifically, the specialty retailer part of the consumer electronics industry. You know–your friendly neighborhood audio/video store. The one where you bought your first real hi-fi system back in college. You went back there for your first VCR, compact disc player, DVD player and big TV. Yeah–that place. When was the last time you shopped there? I didn’t when my sister sent me her question. I didn’t even e-mail or call any of my friends in the business and ask them for their take.
But I’m in the advertising business, which means I have a habit of making my first consideration the wants, needs, passions and whims of the buying public. I’ve done lots of advertising work for specialty retail stores, so let’s look at some of the benefits those stores claim to have over rivals such as the Internet and Big Box stores. (Note: For the sake of clarity and familiarity, I’ll address here the world of specialty consumer electronics retail, but the concepts apply to many other specialists as well.):
However, thanks (or no thanks, depending on your point of view) to the Moore’s Law-like trend in consumer electronics, the cheap stuff is now pretty good stuff. An HDTV of any sort (and price) blows away the finest analog TV of a short time ago. All CD players sound very similar, and who listens to CDs anymore anyway? Reliability and longevity? Why spend a ton on today’s technology when it’s bound to be different, better and probably cheaper next year? People don’t hesitate to throw away something with a power cord the way they used to.
2. They’re clerks and we’re experts. This is still (generally) true. A big box or discounter’s “help” continues to be the subject of disappointment and ridicule. The perception is that generally, they’re (often very friendly and eager-to-please) order-takers. But then again, they don’t have to justify to their customers why they should spend $300 instead of $100 on a DVD player (or $3,000 instead of $1,000 on a TV). There’s no incentive for the clerk to do so-–they’re not on commission. And besides, as stated above, the cheap DVD player and TV still look pretty darn good.
And one more (really big) thing: That damned Internet. No matter how knowledgeable your salespeople are, they’re not as knowledgeable as Google. Google can out-geek the best of us, and provide us with reviews from both testing labs and (supposedly) unbiased owners.
3. People still want to see, hear and touch stuff before they buy it. True dat, at least with genuinely sensual products such as loudspeakers and items that are considered “expensive.” And specialists have a big advantage over the Big Boxes and the Internet in providing display areas that greatly facilitate the comparison process. But demonstrating a product’s benefits and getting someone to buy it from you are two very different things. Ask any specialist salesperson who daily hears shoppers say something to the effect of: “That Sony ABC-123 really is the bomb. But you want $1,000 for it. I can get in online for $800.” Sigh.
4. We Service What We Sell! We Deliver and Install! Serving Springfield Since 1972! These are all nice things. But I needn’t remind anyone who touts these benefits that they don’t seem to have the persuasive punch they might once have had. A lot of CE specialists have gravitated toward “custom home installation” and figured out a way to make money off it. Good on them, but I suspect they would also be the first to admit that it is a very messy business (which is why the Big Boxes stay away from it). Sure not as easy as taking a box from your warehouse and putting it into the trunk of a customer’s car.
OK, I’ve pushed pins into many of the benefit balloons common to the specialty retailer. What can be done to preserve it? (Assuming anyone wants it preserved, which I do.) Here are some suggestions, minus (until another article) the vexing details attendant with each:
1. Do everything in your power to keep the people who bought from you in the past to keep buying from you. You’ve already gained their trust and overcome their objections. You don’t have to start from square one with these folks. They are lovely people who are keeping you in business right now. Treat them like the royalty they are.
2. If you’re not advertising now, start advertising. People are much more likely to consider shopping with you if they know you exist.
3. If you’re advertising like your competition, stop advertising that way. I see lots of specialists advertising the same products and prices as the big box stores. Why?
4. Put the pressure on vendors to keep specialty lines special. Expensive, enthusiast-oriented products simply cannot be sold effectively at Big Box stores. It is in the best interest of the manufacturers of these products to do all they can to preserve and protect the specialty retailer.
5. Put pressure on manufacturers to do their part to help create demand. You shouldn’t have to shoulder this burden alone.
Personal Plug: I know a lot about this kind of stuff. If you would like to know a lot more too, please contact me.