Insight from leading analyst.
One of the world’s leading consumer technology analysts has revealed some key tips for nervous Australian retailers ahead of the arrival of Amazon over the next few months.
Paul Gray (pictured below), principal analyst for consumer devices at London-based IHS Markit, has used selling televisions as a case study for fighting the might and power of Amazon’s online business with the unique dynamics offered by an instore-experience.
“My advice to bricks and mortar retailers is to invest in your in-store experience, and then train, train, train your staff. Think long-term and make your stores bright and welcoming and also ensure your staff bright and welcoming as well,” he said at the recent IFA Press Conference in Lisbon.
“Nobody said this was easy. Amazon is a formidable company and the scary thing is that they have so much more data about that person than you do when somebody walks in off the street – and for a bricks and mortar retailer that’s terrifying – including what they looked at last time, what they clicked on last time and how much they spent.
“But while they have that – they don’t have what a bricks and mortar store has and that’s physical presence,” he said.
“A lot of products like TVs are not just screens – they are furniture and you have to think about selling that in a different way and that ultimately comes down to an experience. Nobody can hear the audio on the internet, nobody can see the resolution on the internet, nobody can have the experience of a premium TV with the sound turned up. So you have to sell them the fairground ride, show them what good picture quality is like and get them to feel what proper audio is like – sell the experience.”