Years ago when I worked on the client side rather than the agency side, I was a merchandising manager for a consumer technology corporation. Consumer technolgoy retail chains were many and varied back then: CompUSA, Circuit City, independent dealers and lots of VARs. The industry was changing rapidly. I took a seminar focusing on retail merchandising and the consumer technology industry. The speaker suggested we take a look at how grocery stores merchandised their products. I started to shop at grocery stores with a different focus. I made casual observations such as how stores would pair chips with salsa on an end aisle display or place huge pallets of beer and pretzels the weekend before the Super Bowl. Why weren’t we using these simple strategies?
I went to a CompUSA and noted that the ink and paper was clear across the store from the compatible printers. Why make the customer walk more than needed in order to get something? Clearly the store and manufacturer made a huge margin on. I also noted that extra memory for computers was found across the store from where the computers were displayed. I talked to our buyer but there was no swaying their mind or the planogram. Consumables and accessories would stay on that side of the store and hardware would stay on the other side of the store.
What is it like to Shop Now?
Oh my, how things have changed. Do consumer technology retailers have it dialed in as well as grocery stores? No, but at least the ink and paper are near the printers. Shoppers can also make an impulse purchase such as a gift card, gum or phone case at checkout. During back to school week there are end aisle displays catering to students and their parents. Even packaging has stepped up its appearance in the CE store. Boring white and brown craft boxes are now 4-color litho-laminated boxes. Now there are different shaped blister packs and unique packaging options–a jam jar for a wireless speaker for example. Consumer Technology products are also sold in more places like Target and Walmart, these retailers devote departments to consumer technology products.
Emergence of Online Shopping
Now that online purchases are making up more of the revenue for consumer technology stores how are they going to get people back shopping at the brick-and-mortar stores? Grocery stores deliver to your door from an online order form but they also understand that people will purchase more product in-store. Major chains have made grocery shopping an experience. Look at Whole Foods, Trader Joes and Gelson’s. Even the larger chains like Ralphs, Vons and Meijers have changed their in-store ambiance to make shopping a visual and olfactory experience. (Granted, they also put things in odd areas of the store so you have to search for them. The longer you are in the grocery store, the more you will buy.)
The Immediate Future
My hope is that the Consumer Technology retailers continue to make strides that make shopping an experience and continue to utilize ideas from grocery stores. I have see this happening. Here is what I would like to see:
- More knowledgeable sales people that can help you make a decision and understand the technology. Consider the store manager at your grocery that can help you pick out that perfect bottle of wine for a special dinner.
- Make it easier to try and sample the product. Just like the representatives who hand out tasty bites of food while you shop at the grocery store, have representatives from manufacturers who really know their product come to the store, demonstrate their product and field questions more often.
- Manufacturers use detailers to make sure their product is merchandised correctly, but the store should care about this too. The end aisle displays in grocery stores are usually well maintained by detailers who visit the store frequently, which store employees are also tasked with keeping displays in order at grocery stores. I rarely see a well appointed display in consumer stores or departments (unless it is Apple).
Make going to the store an experience and worth leaving home!
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