We had an interesting discussion regarding the state of tech retailing for our panel yesterday. The group that was assembled was a good one – and everyone came prepared with their perspective on the marketplace.
The consensus was that the 2012 retail season was not a great one. Fortunately, it was better than last year, as consumers feel a bit less constrained. Best Buy, Target, Walmart all fared less than stellar and the only clear winners that the group thought existed were Amazon and Apple. Everyone was high on both retailers’ products and Adam Levin even went so far as to predict that 4 of the 5 top products for next years’ holiday season would be Apple products.
Noone dared predict the death of brick and mortar retailing, all the panelists felt there is a place in the market for Brick and Mortar, but it struck me that each of us felt that the landscape of brick and mortar retailing in a year or two will be very different than what it is today. If retailers continue to operate with the existing model they won’t survive the onslaught of information and price competition from the online only shops. While addressing the “Best Buy is putting itself out of business…gradually” article, Matt Fassler summed up my sentiments. Interesting article, valid points, but a little too antecdotal. Regardless, B&M retailers need to find their niche and capitalize on their strengths, turn liabilities into assets – as mentioned in the article.
Some categories stood out over the holiday sales season: Headphones, Video Games Systems, TVs (although at low margins for retailers), Tablets and ereaders. Comments were made that this was the last year we’ll see a black and white e-reader. I hope not, I love my kindle – purchased a black and white version specifically because I don’t want a reflective screen. I’ve spoken with others who agree…my prediction is that these devices will stay around for awhile. I only hope that they come out with a color e-ink, as some folks surmised years ago.
Other questions revolved around a prediction for 2012 holiday season…up or down? I took the first shot at that and gained consensus from everyone else on the panel. Really, it wasn’t more than a SWAG. Want to know what it was?? Email me and I’ll tell you!
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