To celebrate the 20th anniversary of the IBA awards we have improved the format of the event and are excited to announce that it will now span across two days.

By John Hutchinson of Hutchinsons HiFi & Vision

What is the most significant issue for the industry at present?

Of course, the internet! Turn it off if you want shops on the High Street.

Fatuous manufacturing and distribution bosses in our industry keep telling us that only 20% of business is done online. Customers still want their retail fix in stores. To listen to that argument is to totally miss the point; customers are still getting their retail fix in my shops, showing huge amounts of interest in all the different models and combinations, taking hours of our salespeople’s time.

“It’s grim out there” many of you have commented to me. The ‘big boys’ of the industry and some market analysts, to whom I have recently spoken, have confirmed that the market situation is likely to get worse before it gets better. The consumer confidence which has reached rock-bottom is a clear reflection of this. Yet waiting for the market to improve may be a long process, perhaps too long for some who wish to continue along the same, well-trodden path.

To celebrate the 20th anniversary of the IBA awards we have improved the format of the event and are excited to announce that it will now span across two days.

The 2011 Independent Business Awards proved to be a wonderful night of celebration – judging by the messages the IER team received from those of you who spent this evening with us. From the nominations received for the 22 awards, the winning products, campaigns and personal awards it was clear that despite the toughest market conditions experienced in decades the industry hasn’t stopped innovating and supporting its independent dealers who in exchange demonstrated their business acumen and superb professionals skills.

The speakers at the recent retra conference predicted that the remaining months of 2011 are likely to be very difficult for the industry. And yet the overall message of the conference wasn’t that of impending doom and gloom. Specialists, analysts and retailers all insisted that every market opportunity needs to be used to attract and keep the custom of the very timid shopper. Among others, Steve Scoggins of Stellison demonstrated that it is not only his business acumen (and energy) but the total focus on delivering the best possible customer service that helps his company grow.

There is a general perception that many measures proposed in the freshly announced Budget are small business-friendly – recognition that the welfare of small businesses is essential for bringing the economy back from the recession. Helping businesses grow and create jobs is a hallmark of this year’s Budget. And yet many believe that these measures do not go far enough and question their ability to improve things significantly before more retail companies go down, as Bennetts has just done, sending shock waves across the industry.

“Connected television is the next big thing,” said Nicholas Barendson, Sony’s marketing director, at the manufacturer’s trade show in Scotland.

The developments at the CES show in Las Vegas provide food for the industry’s debates for several weeks afterwards (it is a bit like an annual prom ball at which every manufacturer displays its best assets and promises that there’s more to come…). This year, this most hotly discussed issue is likely to be the progress of 3D television, and in particular, the 3D eyewear – the relative merits of active-shutter versus passive glasses, which some commentators have already labelled as a new format war.

You have probably noticed that I am a bit of a market analysis junkie, always expecting to find some insight and indication of things to come in the reports which arrive on my PC from a variety of sources. The report with the titillating title, ‘Top Technology Predictions for the Retail Industry in 2011’ from retail technology consultants, CTS Retail, wasn’t an exception, and i dived into it head first. Some of the forecast trends were rather predictable: online stores will gain greater share of sales; multi-channel integration will become king, and retailers need to keep up with consumer thirst for social media.

New research from a customer behaviour research agency, SMG, makes a very interesting reading – for a number or reasons. It reports that many retailers are more focused on acquiring new customers than retaining their loyal clientele.

Assaulted from all sides with the news about the cuts to all sectors of the economy and their dire implications to many of us – on a personal and professional level – I was pleasantly surprised (positively cheered up, in fact) this morning reading the British Retail Consortium’s report entitled ‘Jobs growth defies tough economy’.

In my recent conversations with electrical dealers and suppliers, a couple of issues kept coming up. The situation in the market is tough and it is likely to get even tougher over the coming months but surprisingly (perhaps not – you may say) ‘good’ independents are doing well in the recession. By ‘good’ I mean focused on their strengths (customer service, product knowledge, specialist services) and clear about their share of the local market. The IBA 2010 winner Ian Jones of Lutterworth Sound & Vision, told me: “We all have to learn to walk away from the deals which are not right for us.”

It was with great interest that I studied the recent report from the Greater London Authority “Cornered shops; London’s small shops & the planning system”. There is nothing new about the problem it tackles, however judging by the level this issue has reached, there is some hope that at last something may change in relation to the status and future of smaller shops in Britain’s local communities.

Judging by the comments and emails we have received following the Independent Business Awards 2010 evening, we could say that the event was successful in identifying and endorsing products and services widely considered as the best in our market. The Awards have also brought to the industry’s attention another group of truly outstanding retail professionals who stand out from the crowd not only on account of their business acumen but also the first-hand knowledge of their customers.

The anxiously anticipated Budget has just been revealed. It included an increase in VAT and a 25% cut to the public sector. Defending it, the Chancellor, George Osborne confirmed that it would instil confidence in the UK economy and create jobs in the future. He also said that he attempted to make it fair to all industries, evenly spreading the burden among small and large enterprises. ‘Adequate provisions’ for everyone were the intention.

Sony’s announcement of its new selective distribution strategy at the company’s dealer event in Scotland will no doubt ruffle a few feathers. From now onwards Sony intends to sell its products only through retail channels which will add value to them and will be able to give customers a good shopping experience.

It’s no coincidence that at the beginning of the new year, we are featuring two reports dealing with retail training. Firstly we look at what’s available from the leading electrical manufacturers in terms of product-related training.  Major brands which truly value independent channel are very flexible in delivering retail training, recognising dealers’ limitations in terms of time and staff availability. In addition to the showroom-based training, which is probably the best environment for familiarisation with ‘live’ products and their functions, they also conduct in-store training, not only during the day and in the evening, but also as breakfast sessions.