Smart Retailing Goes Beyond Product Sales
Disruptive CE manufacturers—those who generate profits by selling fresh technology in-store and online—will continue to thrive. They will continue to drive their once formidable competitors out of the market while they lead their allies into new channels and ripe market opportunities.
CE retailers, on the other hand, have never derived all of their profits through sales of core products. The retail basket includes attachments, accessories and adjacencies; in-home services; warranties; soft dollars and other vendor marketing investments; credit card interest gains. For advanced e-retailers, profit is derived through new “products” like apps, widgets, movies, music, games, couponing and reward based programs.
Digitalization, miniaturization and cloud access is driving dynamic retail profit opportunities. Intensive predatory competition is also fueling commoditization in the CE marketplace, pressurizing margins and destroying slow moving product. The entire CE industry stands at a technology crossroads. There are two paths at the fork in the road: Innovate to survive or hunt for alternative avenues for growth.