26 Dealing with the Competition By Adam Grant Competition surrounds us all on a daily basis. Whether it’s two guys vying for the attention of the same woman, two sports teams squaring off for one trophy, or a table full of poker players looking to outbluff their opponents, competition is always happening somew<strong>here</strong>, in some way. Business is no different, and can arguably be looked at as one of the most competitive landscapes this world has to offer. In the consumer electronics industry, competition is even more cutthroat. Manufacturers compete with other manufacturers to be the first to unveil a product with technology not yet explored or fully exercised. Meanwhile, a customer will compete with other customers by camping out in line for six extra hours than everyone else just to be one of the first to get the latest, hottest product. On a retail level, the competition is just as fierce, if not more so than anyw<strong>here</strong> else in the CE realm. Independent stores have to keep an eye out for incoming independents moving into the area that may offer better pricing, service or brand selection; as well as big box retailers like Best Buy, Future Shop and Walmart, invading their territories. The latter three, and other like retailers, subsequently have to battle it out with one another. And a new big box, Target, will soon be moving into Canada as yet another retailer vying to get into the pocketbooks of consumers. Then, t<strong>here</strong> are the ‘trunk slammers,’ which many define as individuals that merely sell products and services at a lower price point literally out of a vehicle with a company name slapped across its side. What kind of a wrench do people like these throw into the plans of retailers? No matter who the competitor may be, CE retailers not only need to be aware of who is out t<strong>here</strong>, but how they can differentiate themselves from everyone else. Perhaps carrying A-list only brands brings in a higher volume of shoppers, or maybe having an exclusivity arrangement with a brand within a certain region makes a giant impact. Could it also come down to something as simple as hard work and customer focus that keeps a shop running at a certain clip? T<strong>here</strong> are a lot of factors out t<strong>here</strong> that retailers have to consider. It’s survival of the fittest, and remaining fit nowadays takes a lot of work. But it’s possible if done <strong>right</strong>. Big Box vs. Independent Shops On one side, t<strong>here</strong> are the big box mass retailers like Best Buy, Future Shop, Walmart and Costco luring in consumers with a sizeable volume of low, mid-level, and high-end priced products, rock-bottom prices, and endless customer serv- Overview • Competition is a continuous theme in the retail world, thus forcing businesses to find new ways to differentiate themselves • Not all independent retailers feel the need to price match with big box retailers because they don’t want to focus on the same clientele • Target is coming to Canada is 2013, but it’s still unknown what its impact will be on the retail market • Wireless competition is fierce, as some shopping centres will now host upwards of 10 providers within the same building • Sometimes the key to outdoing, or at least keeping pace, with a competitor is offering strong and respected product lines At Sherway Gardens in Etobicoke, ON, a Virgin Mobile kiosk is situated <strong>right</strong> across from a Tbooth store. Considering that several shopping centres contain multiple wireless retailers now, this is becoming less of an uncommon sight. ice strategies geared toward maintaining shopper loyalty. On the other side are independents like Omega Audio Video and HiFi Centre which, by comparison, strictly cater to shoppers looking for top-level electronic products and vast installation knowledge/services. These are generally offered at a higher price. Determining which type of store is best is really up to the customer. However, when you’re working for or running one of these places, understanding how competitors do business and how you can differentiate from them is the key to securing a distinct pack of shoppers. “The reason why we’ve been able to survive is that we’re so significantly different from any of the other stores,” declares Igor Kivritsky, General Manager of Vancouver B.C.-based high-end audio video store and custom installation company HiFi Centre. “It’s so blatantly obvious how different we are. T<strong>here</strong>’s nothing similar between us and Best Buy whatsoever, w<strong>here</strong>as other (smaller) companies that tried to be sort of similar, but a bit better, got wiped out.” Kivritsky has essentially determined that the best way to compete against the Best Buys of the world is to be as far removed from that kind of customer base as possible. In order to do that, his HiFi Centre location has made a point to Jeff Rush, Vice President of Sales, Virgin Mobile Canada: “We are a challenger brand. That was a platform off of which we launched.”
TO BE CLEAR, OUR COMPETITION WILL LEAVE YOU FLAT. IN 3D TV TESTS 4 OUT OF 5 PEOPLE CHOOSE LG CINEMA 3D. Screen Image Simulated THE NEXT GENERATION 3D GET THE REAL FACTS AT LG3DFACTS.CA Based on a May 2011 LG consumer perception study in the United States comparing overall 3D experience of LG Cinema 3D TV vs. Samsung ® and Sony ® active 3D TVs in factory default settings. LG TV model 47LW5600 with model AG-AF200 glasses; Samsung TV model UN46D6420 with model SSG-3100GB glasses; Sony TV model KDL-46EX723 with model TDGBR100/B glasses. For a small percentage of the population, the viewing of stereoscopic 3D video technology may cause discomfort such as headaches, dizziness or nausea. Visit www.lg3dfacts.ca for more details. ©2011 LG Electronics Canada, Inc. All <strong>right</strong>s reserved. “LG Life’s Good” is a registered trademark of LG Corp. Sony and Samsung are trade-marks of Sony Corporation and Samsung Electronics Co., Ltd. respectively.
- Page 1: PM40015963
- Page 4 and 5: 4 Serving Canada’s Consumer Elect
- Page 6 and 7: 6 By Lee Distad It sometimes seems
- Page 8: 8 Scot Kerek, Sales Manager, AVAD C
- Page 11 and 12: Agata Mossop, Director of Sales, Le
- Page 13 and 14: ©2011 Milestone AV Technologies, a
- Page 15 and 16: Omnivex used RFID to help build a d
- Page 17 and 18: Convection cooling system Lockable
- Page 19 and 20: The industry’s brightest minds co
- Page 21 and 22: Lowepro’s Streamline 100 shoulder
- Page 24 and 25: Distributed in Canada by Digitec Tr
- Page 28 and 29: 28 Matt D. Scott, President, Omega
- Page 30: 30 Kim Francis, Director of Retail
- Page 34 and 35: 34 C Camera Phone: While almost eve
- Page 36 and 37: 36 One of the most influential tech
- Page 38: 38 New carriers like Mobilicity arr
- Page 42 and 43: 42 Benefits: It Doesn’t Have to b
- Page 44 and 45: 44 Cathy Fuchs, President, While Wi
- Page 46 and 47: 46 The Copyright Battles Rage On By
- Page 48 and 49: 48 Retailers like Future Shop have
- Page 50 and 51: 50 Got a retail story that should b
- Page 52 and 53: 52 NEW DUMOULIN ORGANIZATION PLANS
- Page 54 and 55: 54 Bill McQuiggin, Owner & Founder,
- Page 58 and 59: 58 Yamaha Canada emphasizes two-cha
- Page 60 and 61: 60 TV makers announce plans to stan
- Page 62 and 63: 62 Jim Kovacs Q&A How did you get i
- Page 64: What if you could immerse yourself
Change language