Do The Deals Ever End?
The power of the Internet’s always-on connectivity has reduced product prices, shuttered brick-and-mortar retailers and decimated MSRPs. Barcode reader apps, like Red Laser, offer instant access to the lowest price and special deals from a multitude of competitors. Consumers have opted into thousands of brand-exclusive networks and social groups for instant discounts.
If that’s not enough to strike a sense of hopelessness into the hearts of CE retailers, all types of specialdeals are pushed around the clock to mobile devices and then spread with viral intensity to social networks and other empires populated with millions of “friends.” On top of that, Showrooming pushes the lowest price to consumers at the last three feet of the sale, forcing retailers to try and match whatever deal the cloud offers at that particular moment. Shackled with hefty SG&As, retailers must find new ways to compete, increase margin, elevate customer satisfaction and draw traffic.
Increasingly, purse-proud consumers will continue to seek out and embrace smartly pulled and pushed prices offered at the cash register clouds. At the same time, though, CE retailers, e-tailers and brand vendors are busy exploring new sales and marketing opportunities to leverage this paradigm shift.
Peter Weedfald is the Senior Vice President of Sales and Marketing for Sharp Home Electronics Company of America (SHCA). He has also served as President of Gen One Ventures, SVP, Chief Marketing Officer of Circuit City, SVP of Sales and Marketing in North America for Samsung, and SVP of global marketing and EEVP, GM & Chief Marketing Officer for ViewSonic.