CHANNEL your efforts, to see a PROFIT

With The Photography Show looming this March, we re-cap on how you can maximise return on investment from either exhibiting at or just visiting a trade event. Plus, as BPI News has long advised, we hear how and why a multichannel approach is the future of retail – according to the experts

While we debate whether manufacturers offering their products direct to the end user – via e-commerce sites or own-branded bricks and mortar stores – is where retail may be heading, another way to ‘connect’ with your customers – whether they may be trade or consumer – is via a public event or exhibition. Dotted about the calendar but in truth happening only once a year at most, these are opportunities to get ‘face to face’ to be seized with both hands. At the time of writing The Societies Convention and Trade Show has been and gone, meaning our sights are now set on The Photography Show in March and, further afield, Photokina in May. So, if you are exhibiting at or attending either or both – with, exhibition fees aside, staff wages, travel fares and accommodation all not coming cheap – how can you make sure you maximise return on investment? We’ve some simple pointers to re-cap on to make sure such shows pay their way…

ACT LIKE A SCOUT: BE PREPARED

Trade shows are a place to get inspired as well as informed. If you’re not already exhibiting, treat it as a scouting trip and look at how other manufacturers and retailers are presenting themselves, examine what attracts your eye and why, and which locations (and products) seem to be attracting the most interest and footfall. If you’re visiting with a possible intention to exhibit in the future, all of the above can help sway your decision, as well as providing ideas to emulate. And an obvious one, but something in our experience a surprising amount of people forget to do: stock up on business cards – and also request them from others. They’re the easiest way to follow up on leads and conversations you’ve had afterwards – and the whole point of going to an exhibition is to converse and interact with people. Who knows; they could be your clients and business partners of the future.

If, however, you are already exhibiting – or planning to – then you want to make yourself as irresistible as possible. Hopefully the marketing team will have done its job in advance and the show will be packed, and, while just by being on the show floor you should attract passing trade, you need to think how to draw that passing trade in. A huge stand, brightly lit display, plenty of new products and some money saving ‘show deals’ will always put you at an advantage, but for those operating on smaller budgets or smaller stands, a clever idea and a bit of retail theatre can help level the playing field with the big boys. Keep an eye on and befriend those on neighbouring stands too – who knows when you might be able to direct custom each other’s way? We’ve all heard tales of that customer who, often at the 11th hour, provides the one big sale that makes the exhibitor’s expense all worthwhile.

Lastly, if you don’t go to the show in the first place, you won’t know what you’re missing out on. We’ve all got to make time in busy schedules, but you’ve got to be literally in the room to close that deal (or see the potential for a future hook-up) in the first place.

BRICKS OR CLICKS? BOTH, CONCLUDES NEW REPORT

The latest Consumer Electronics Retail Distribution report from industry watchers Futuresource has concluded what BPI News has been advising all along: namely that the future of retail – and specifically consumer electronics (CE) retail – is multichannel. In 2020 a web presence, and indeed e-commerce site, is needed alongside a bricks and mortar outlet.

Interestingly the report notes that, following the Apple model, 10% of all global CE shipments are shipped direct through the vendor’s own physical or digital retail structure. It adds this is driven primarily by the USA, UK and China, three retail landscapes where vendors are keen to control the consumer’s engagement with their products, manage upgrade cycles and drive upsell opportunities. Futuresource acknowledges that this retail model has supported Apple’s success since 2001, with Apple growing a strong retail business, which most recently accounted for 31% of its net sales in the financial year 2018/19.

While other retailers may have had a larger physical footprint, and for much longer, the report draws the obvious conclusion that the ever changing retail landscape is posing challenges to established vendors and retailers, thereby forcing a re-think in strategy. It recognises that multi channel strategies have emerged as a means to combat e-commerce giants – most notably Amazon – and that retailers who have failed to adapt to the emergence of e-commerce have struggled.

More positively for the high street camera specialist who also promotes and sells their business via the web, the report highlights the advantages that multi channel retailers have over their purely online counterparts – and they’re all based around the importance of their physical footprint. First up is the ability to ‘showroom’, via a bricks and mortar presence, giving customers the ability to touch and try a product before purchase. The report notes that this is increasingly important towards the premium end of the market – which is where the camera business has been heading of late. Moreover staff in-store are able to create up-sell opportunities on the spot, either through selling extended product warranties, added services, or in terms of photo, extra higher margin accessories and devices. Finally, customer service is a unique retailer advantage often found only in store. Retailers are able to create environments where consumers can learn how to best set up and use their device, as well as offering a consultation service.

GO BESPOKE TO BEAT THE ONLINE GIANTS

Demystifying technology and finding solutions bespoke to the customers’ needs are all things that in-store retail engagement can do well – and are an advantage over pure online retailers that shouldn’t be squandered. Especially when the latter are continually developing algorithms and services, as well as leveraging their own vast competitive advantages on price, logistics and convenience, to negate that disadvantage. As we’ve noted in the past in BPI News and which this latest report also highlights, multi channel strategies need to centre on building a good customer profile both in-store and online, before continuing to improve their ability to market to their customers in a bespoke fashion. We’re also all aware of the danger of the consumer utilising the best of both worlds – getting expert advice and service in-store before then turning to the online retailers for the ‘best’ prices. This can be offset by price matching mechanisms, of course, but often this isn’t viable for smaller stores surviving on paper-thin margins as it is, so, yes, multi channel retailers need to make the most of anything they can turn to their advantage, such as adding value in-store by helping customers to set up and use their gear.

The backdrop for all of this – the declining physical retail landscape – does present another obvious challenge for premium camera and consumer electronics vendors/manufacturers, however, as it limits their ability to showcase their most premium devices and leverage the advantages of in-store engagement. However, the outlook is not completely gloomy, according to Futuresource’s findings, as they suggest consumers rely on a host of checks and balances before making a major purchase, such as product reviews, word of mount, social media influencers and beyond. It notes that to counter the challenges of the modern retail landscape, CE companies should support and rely on their retail partners, especially those with an established multi channel strategy.

Overall, though, the industry watcher expects retail in 2020 to continue to move towards pure online and multichannel retail methods, with vendors also increasingly leveraging a direct retail strategy, especially in mature markets. We’ve witnessed the latter recently with the opening of Fujifilm’s House of Photography, though that purports to also be a showcase for photography in all its forms, not just a means of direct sales. Nevertheless the bumpy ride for retail in general doesn’t seem to be ending any time soon. But while it presents challenges to vendors and retailers alike, it also presents opportunities for those willing or brave enough to adapt.