As a massive enthusiast of both film and music, the possible demise of the retailer HMV has left me slightly downbeat. The shop has always been an important part of my consumer identity because it’s pretty much the only major high-street retailer that specialized in the products that I wanted.
With online companies like Amazon providing both the ease and comfort of shopping at home with (more often then not) cheaper prices, it is unsurprising that the HMV Group went into administration.
So two important questions come to mind:
1) How can a High Street retailer survive in an online dominated world?
2) How, if possible, can HMV challenge a rival like Amazon?
I strongly believe that most people still enjoy the experience of the high street. Why? Because unlike going online, a day-out-shopping is about much more than just shopping.
However consumer habits have changed and rather than just buying stuff when we find it in a store we’ll wait to see if we can find it cheaper online. Moreover with the Internet being so easily accessible on mobile phones we can now instantly find out where to get the product for the best price.
Obviously, many high street retailers still run successfully in an online dominated world. Personally I find the Apple Store is a great example of how a company can create an experience that is much more than just mere selling. Of course one could argue that this doesn’t directly solve the problem, because a more enjoyable experience doesn’t always guarantee a sale.
Unfortunately, there doesn't seem to be an easy solution.
Recently on the Marketing Weekly site one columnists suggests that retailers need to broaden their brands. On the face of it, it might sound like a good idea (although I'm not sure Al Reis would agree) and in some instances it might work, but then HMV had lately expanded its offering without any signs of improvement - some even argued that this was one of the reasons HMV went into administration.
Perhaps the solution is to embrace mobile technology and the ability to be 'always on' and offer price-matching promises. Let's be honest one of the beauties of high-street shopping is being able to walk away with your purchases - online you have to pay extra for next-day delivery.
edit - After going into administration HMV was subsequently saved and is still an important part of the UK high street.
Perhaps the solution is to embrace mobile technology and the ability to be 'always on' and offer price-matching promises. Let's be honest one of the beauties of high-street shopping is being able to walk away with your purchases - online you have to pay extra for next-day delivery.
edit - After going into administration HMV was subsequently saved and is still an important part of the UK high street.