| The winds of change are blowing |
|
|
|
| Provided by Chad McCan | |
| Tuesday, 29 January 2008 | |
|
If you own a TV then you know the major electorial push this year is banking on being the "Candidate of change". This motto is being thrown away everywhere, even in the mobile electronics industry. Is change as simple as changing your message? To what degree are things changing? Does the rate of change matter? Let's take a closer look at what has changed and what still needs to change.
I was talking to a friend who sales car audio at a local shop here in Kansas City. I asked him how the mobile electronics portion of their shop, who primarily sells home audio/video, was doing. He said "Some days I wonder how I have a job." We were standing in the small 15x15 room that housed 99% of their mobile products. Just outside the door of this room, was their security electronics and interconnects.
My friend, let's call him Ralph to protect him and his stores identity, isn't new to this game. I met him when he was working at a major retailer that is no longer in business. He was selling everything from vacuums to computers. He was interested in car audio, so we designed and installed a Cerwin vega system in his car.
I tell you his background because I want you to understand Ralph isn't just a kid who makes minimum wage selling whatever is on the shelf. He's an involved and integral part of a large electronics retailer. He makes decisions for the company he works for and derives his entire living from this job. The job, he isn't sure can afford him most days.
He told me he couldn't give away a pair of subs or an amp. Now, he gets people walking in the door looking for a cable to connect their iPod to their factory stereo. They aren't looking to add crossovers and replace all the speakers in their car. They aren't trying to make sure you can hear them coming from three blocks away. They are far beyond that. They no longer want music, they want media.
Media has a couple of names including digital content, MP3, MP4, WMV, DivX or something else. The bottom line is that music is not the only thing people are enjoying in their vehicles. Kids are watching movies, mom is catching up on Oprah shows she missed during the week, either by video or talking on the phone to Aunt Peg who never misses an episode. Dad is listening to the NFL channel on Sirius radio trying to find out if his fantasy quarterback is going to play well this week. It's a never ending stream of media.
You heard me mention cell phones, right? Cell phones are becoming a major player in the media industry. Cell phones are the best medium to use, because almost everyone has one, including my 9 year old (I lost that argument with her mother). You can watch TV, listen to music, watch movies, text message, and even talk to someone, even though thats often forgotten these days. Manufacturers and retailers alike have to take all this change into consideration when they are designing and choosing their products.
The market has changed in the past 10 years for a number of reasons. Vehicles have better sounding and more integrated entertainment systems from the factory. They are harder and more expensive to install aftermarket equipment in. With more to do in the car, there is less need for the audio equipment to be top notch.
Further, the internet has thrown the retailer at a disadvantage. Retailers make money by selling product by adding value to a product they purchased for less. Less and less value gets added when the retailer becomes an order taker. Now that you are an order taker, you are the same as an internet e-tailer. They have a cheaper price though, because they have less overhead. What a dilema...
If I owned a retail location, I would start finding ways to add value back into a product. Value can be derived from personal relationships, education, service among others. I look forward to the day we get back to adding value to product and stop complaining about how the internet is killing our business. |
|
| Last Updated ( Tuesday, 29 January 2008 ) |









