This trend continued in January 2012, and its main causes included heavy price erosion and some product cannibalisation (for example, MP3 players by smartphones).

Moreover, the complexity of modern CE technology leaves consumers confused, with 27% of them giving up at the final stage of the consumer journey and failing to purchase the intended item, reported Gildas Pelliet, managing director of SonyUK, at the press briefing during Sony Technology Conference inLondon. “This 27% is the size of the lost opportunity in our sector and it means that we should simplify the way we engage with consumers.” While some young technology geeks are already looking to trade in their first tablets for the latest model, many consumers still don’t know how internet TV works and how they could benefit from it.

Sony marketing director Shaun Dorrington argued that “demonstration is now more important than ever” if consumers are to buy into this wonderful new technology, and the retailer has a greater role to play than before. I am sure that we all agree with this.

And yet, the prospects for the electrical retail sector are, to say the least, uncertain, with the Javelin white paper predicting that by 2020 there will be 38% fewer electrical retail stores in theUK. Unless a concerted effort is taken to support retailers on the high street (and the Mary Portas report clearly is not going to be significant in this respect), customers (even those who favour the internet) will have nowhere to turn to for specialist advice and that all-important demonstration.

Printer friendly version

Email this article to a friend

Bookmark this

---