Tag Archives: business

Tapping into the booming esports market

PCR BLOG

In July 2019, spanning three days, the largest gathering of gamers from around the world – 40 million – took part in the Fortnite World Cup tournament. Hailed as a monumental moment for esports, the winner, a 16-year-old, took home £2.42 million. The prize sum overshadowed the £1.6 million Shane Lowry won at this year’s Golf Open Championship in Portrush. The esports industry is becoming increasingly popular, rivalling many traditional sporting events with the Fortnite tournament watched by 23,000 people in a sold out New York stadium and millions more through live streams.

This highlights how the gaming industry and its place in culture has evolved, with gamers stepping away from their own consoles to watch others play their favourite games. And not surprisingly, this is reflected in the size of the gaming market which continues to grow rapidly. According to Newzoo, there are reportedly 2.3 billion active gamers globally and 46% of those (1.1 billion) spending, the financial impact to the establishment is significant. More so with the forecasted growth of gaming from $137.9 billion in 2018 to more than $180.1 billion by 2021. Looking just at the UK, the gaming market is now worth a record £5.7 billion thanks in part to the strong foundations in place for innovative games and entrepreneurial developers.

The next 12-18 months looks set to be a very interesting for the sector with some of the big names in gaming hardware expected to reveal their next generation platforms. Expectation is that Sony, who have sold 525 million consoles since launching PlayStation in 1994, will start to ship their latest console in the second half of 2020. And of course both Nintendo and Microsoft will be in the mix too. Microsoft officially announced its next generation hardware, codenamed Project Scarlett, during its E3 2019 conference and it’s due for release in time for “Holiday 2020”.

Before that is the exciting debut of Stadia in Q4 this year which may be a potential fly in the ointment for the established gaming brands. Google’s launch of Stadia is a game-changer, and a move that will have Nintendo, Microsoft and Sony quite concerned. No downloads, no patches and no console makes this the cloud gamers dream, and Google is delivering this incredible service without compromising on graphics quality.

As Phil Harrison VP and general manager at Google stated when launching Stadia: “It’s a new generation platform, rather than a next generation platform”. In evolving the concept of platforms, rather than recreating them, Stadia will be a tough act to follow, with sharing options via YouTube, which has 63 million daily viewers worldwide, Google Assistant built in, 4K resolution games at 60 frames per second with HDR (High Dynamic Range), and a plan to support 8K resolution in the future.

The excellent features are great news to those who have grown up used to on-demand web-based entertainment, app-based games and instant updates to technology, but for generations who are familiar with buying physical consoles and games, this could be a transition they may not make because nostalgia can come into play. Owning a console and saving up to buy the latest must have game and completing it before trading it in to buy the next release, has been a pleasure to many.

The generational changes in consumers has seen Millennials identify with nostalgia and they recapture their youth through console gaming just as they have been doing for over 20 years. There is a shared enjoyment amongst social groups in getting together and playing a multiplayer game on Mario Kart on the original Wii. It’s also interesting to see how the retro gaming sector tapping into this and making headlines. Available to buy this Christmas will be a reimagined full-sized reissue of the Commodore 64.

Giving this generation a chance to either buy or play the consoles and games of their youth could open up a new opportunity for gaming retailers, because a streaming service is not great news for those retailing the hardware to eager gamers needing to upgrade to access the dream being sold by the platforms. Indeed, GAME has been battling tough high street conditions and has seen in the past three months a successful take over by Sports Direct. The British sports gear retailer said it did not believe that, as a standalone business, GAME was “able to weather the pressures that it is facing”.

Furthermore, the introduction of streaming could see the resale market suffer too, again a blow to high street stores such as GAME and CEX.

This is an evolving and exciting market with opportunities and pitfalls for the whole supply chain. I started this piece discussing the phenomenon that was the Fortnite World Cup and for retailers, this presents a huge opportunity to tap into this ‘experience’ economy and revive their fortunes by using empty high street spaces to create purpose-built gaming arenas for live gaming where the community can come together. But there’s no doubt that we’re going to see a ferocious battle between Stadia and the console manufacturers – so let the games begin.

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Equipping young minds for a successful digital future

Bdaily blog

The UK is leading the adoption of digital technology enabled in education with UK Schools allocated an estimated £900 million in funding from the Department of Education for 2019-20 for EdTech according of the Institute for Fiscal Studies.

In physical terms this equates to 3,392,100 computers in classrooms across the UK with an average Primary School having 70 computers and Secondary an average of 431[BESA.ORG]

There are currently 32,113 schools in the UK. Of these, 20,925 are primary schools and 4,168 are secondary schools. There are 2,381 independent schools, 1,256 special schools and 351 pupil referral units. [BESA.ORG]

The opportunity to expand Edtech sales are obvious for those who know how to tap into this growing market that values accessible technology to equip young minds for a successful ‘digital’ future. There are also benefits for already stretched schools to help bridge the gap through Edtech as it’s proven to reduce teacher workload, boost student outcomes and help create a level playing field for those requiring learning support. So much so that the Education Secretary, Damian Hinds, set out plans in April this year to support innovation and raise the bar in education establishments across England backed by a £10 million injection.

School funding per pupil is expected to be frozen in real terms between 2017-2018 and 2019-20 albeit at a level of above 4% – IFS

The target audience is not exclusively schools, it’s also parents, as many public secondary schools employ a BYOD program, therefore parents are expected to buy their child a suitable device. However, this is becoming stricter as previously it was an “any device will do” approach but due to different devices having different capacities and capabilities, this has changed. Today, school book lists stipulate the minimum requirements for a device to create a more uniform and compatible ecosystem that is hassle free for all.

The retail market for Back To School is worth, in all categories, some £1.45bn in the UK and is an increasingly important fixture in the retail calendar, becoming competitive for both brands and retailers endeavouring to appeal, in particular to secondary school pupils and those students heading off to university.

From PC to projection and display technology such as Jamboard from Google & BenQ the classroom is changing where technology is the norm and standard for students as they transition through their education and eventually into the workplace.

It’s not just about the hardware and software solutions, it’s also about the teachers who need professional development and training to understand how each device could work and how they can effectively add them in to their lesson plans. Figures from Bett highlight that 74% (rising from 60% in 2018) of educators surveyed said that educational technology is often not sufficiently easy to use for ordinary teachers. So, those brands that offer the end to end solution that enables education access to the best technology with the easiest interface, least maintenance and highest reliability will capitalise on this growing market.

Chromebook by Google is one of these, Google shared in January 2019 that 30 million Chromebooks are now used in education, up 5 million from the last reported figures in 2018. Growth has been aided by many country’s education systems choosing to use Chrome OS devices and G Suite cloud based computing solutions that enable collaborative learning accessible whenever you need it. In London the brand has worked with London Grid for Learning to help over 90% of schools across the city bring technology to more students by offering free training in Google Classroom, G Suite and other tools to help improve the digital skills of teachers.

Similarly, are Epson who have identified that 58% of students cannot read all content on a 70“ flat panel. Epson’s interactive display solutions provide scalable image size. Having the right sized image for a room can make a huge difference to levels of concentration, enjoyment and understanding.

The DFE in April 2019 published a white paper entitled “Realising the potential of technology in education: A strategy for education providers and the technology industry” DfE White Paper.

This white paper identified 10 challenges for industry to assist in eradicating these within education quoting: “To catalyse change in the use of technology across the English education system, we are launching a series of EdTech challenges. They are designed to support a partnership between EdTech industry and the education sector to ensure product development and testing is focused on the needs of the education system. The challenges are to industry and the education sector (including academia) to prove what is possible and to inform the future use of EdTech across our education system.”

Setting out their stool to really help children in education be ‘digital’ ready.

To read the full article please visit Bdaily News.

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How 5G will boost the smart home market

PCR Blog

Over the last few years, smart home technology has revolutionised the way we live at home and according to PWC’s white paper, ‘Connected Home 2.0’, £10.8bn will be spent on smart home devices in the UK in 2019. But despite this, a recent survey we carried out into the connected home highlighted consumer frustration with smart home technology, with consumers citing that they can’t get their smart home technology to connect to each device and talk to each other, they have no idea how it all works, they are worried about security and there’s little perceived benefit or value.

Whilst this may sound negative, this presents a huge opportunity for 5G to boost further device adoption and showcase the future possibilities in the home.

There’s been a lot of hype around 5G – from downloading a full HD movie in under five seconds to making fully automated vehicles a reality – but I believe 5G will be a transformative technology for the home, as it’s spearheading a multi-dimensional world connecting devices, brands and people in real time with its fast bandwidth and reduced latency. Take a look round your home, count up the numerous devices that rely on a strong wireless connection to stream, to work, to secure, to survive – tablets, mobiles, TVs, voice assistants, PCs, thermostats, light-bulbs, alarms, cameras, and gaming right through to connected appliances. Without a good connection, they can all come to a grinding halt.

Stadia by Google is an example of where 5G and gaming complement each other. No downloads, no patches and no console makes this the cloud gamers dream, and Google is delivering this incredible service without compromising on graphics quality. With 2.3bn active gamers globally and 46% of those (1.1bn) spending, the financial impact to the establishment is significant. Stadia will be a tough act to follow, with sharing options via YouTube, which has 63m daily viewers worldwide, Google Assistant built in, 4K resolution games at 60 frames per second with HDR (High Dynamic Range), and a plan to support 8K resolution in the future. Now with Stadia, the internet – accessed increasingly via 5G – will be your store, with the network and data centre as your platform.

The innovation that is 5G will provide an alternative to fixed wireless internet making things connect quickly, faster, nicely and simply. From rural areas where broadband speeds are poor to urban areas where speeds can suffer from congestion, 5G will enhance the possibilities for entire communities and not only the smart home.

This will pave the way for 5G enabled fully integrated living spaces that adjust to the needs of each member of the family, changing the way people entertain, consume media, use their utilities, communicate and cook. Virtual assistants like Alexa and Google Home are only the start and we’ve seen just a fraction of what personal assistants are capable of. Google announced at CES earlier this year that it wants to make its assistant the focal point of a consumer’s life; in the home, in the car and on mobile devices. 5G will be that enabler.

Layer on top of this the possibilities of 5G enabled in-home augmented and virtual reality for cooking. Imagine at the touch of a button, Delia or Jamie standing next to you showing you how to cook one of their recipes. Sit down with your friends and family to watch a tennis match and image real time sports data appearing over tennis players as they hit the ball. 5G will make smart homes even smarter by unshackling developers from the speed restrictions and other issues that exist with today’s solutions where devices rely on Wi-Fi networks or Bluetooth connections.

For those who feel security could be an issue, the good news is that mobile operators are ensuring security is built into the fabric of their 5G networks and there’s no reason for 5G networks to be any less secure to use than 4G. When connecting a device to a 5G network the same protocols you’d apply to security software, passwords etc. should be applied as normal, however it is worth noting that all data sent over 5G is encrypted and 5G devices will offer increasingly advanced security options. Interestingly, according to research from Ericsson, 29% of people would like DNA authentication to be a biometric security option.

The reality is that 5G can provide a more consistent approach, making things easier to setup and thus encouraging product development through to subsequent consumer adoption and increased usage of the vastly developed Internet of Things. With inbuilt future proofing, one of the most interesting effects will be the societal impact 5G will have for our ageing population, assisting those who are fit but may be less able to manage themselves. This may blur the lines between hospital and home. For many, it’s more effective to manage the healthcare of patients who require the most resources from home rather than via our currently overloaded NHS. In addition, its adoption can reduce loneliness and speed of response in the event of an emergency.

We’ve already seen how sensor operated smart home tech can alert families to movement, so they know their elder relatives are up and about in the house and not lying there injured. There are also remote surgeries where doctors see patients by video call, however buffering is often an issue in remote locations, which makes the service more difficult for vulnerable people to use. The implementation of 5G will take this to a whole new level; real-time remote monitoring of medication usage; food intake levels and exercise; connecting the vulnerable to seamlessly operated telehealth services and tracking indicators from sleep to blood pressure and insulin levels.

It can help power personalised, preventative and smarter care capabilities and elevate connected medicine to an unprecedented level, helping elderly people live fulfilling and productive lives on their terms. This is exciting times for a growing societal issue here in the UK but let’s not underestimate the understanding we need of the health ecosystem and what it will take to implement the systems to connect to these technologies.

The opportunities 5G technology offers all generations extends beyond the home and to the streets through autonomous vehicles, traffic management and the smart monitoring of the environment around you, telling you in real-time, for example, where best to avoid pollution on your daily run. Moreover, everything you would currently expect to be able to access or control in the home will be available to you wherever you are, without any comprises imposed on you by being away from regular Wi-Fi based connectivity.

Ericsson forecasts that by 2024, 5G subscriptions will reach 1.9bn, and that coverage could blanket up to 65% of the world’s population.

The UK’s largest network operator, EE, was the first to launch 5G in the UK on 30th May, 2019, beaten by the Swiss who launched in April. Service started in London, Cardiff, Edinburgh, Belfast, Birmingham, and Manchester, with several other cities joining before 2020. Vodafone also launched on 3rd July 2019 in seven cities with 12 other cities to be included before 2020. Three will join the 5G race in August in London. A total of 25 other locations will get 5G in the UK via Three before 2020. Lastly O2, with no published launch date, announced its plans to roll out its 5G network in 2019 in Cardiff, London, Belfast, and Edinburgh to start, with more areas getting 5G in 2020.

Whilst the UK is already partially 5G enabled, devices are limited and we’re not that far ahead of the vast majority of developed nations whom all plan to launch in 2019/2020 such as Germany, Italy and Norway all behind Vodafone Spain who are ahead of all EU nations having launched on 15th June in 15 cities.

To read the full article please visit PCR.

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What do the Tory candidates policies mean for the high street

LLB BLog

In the blizzard of spending splurges promised by the two candidates to be our next Prime Minister has been some announcements that could be very significant for High Street retailers. Boris Johnson, the clear favourite, has announced that he wants to introduce 100% business rate relief on free-to-use ATMs to keep as many as possible open in town and city centres to ensure shoppers can withdraw money. He has declared that he wants to curb the closure of Automated Teller Machines (ATMs) that has followed the surge in contactless payments.

While this may appeal to shire Tories of a certain vintage the trouble is the Boris approach is as feasible as owning a unicorn. In a contactless world, less and less people are drawing out cash when you can tap a card or your phone. The subsidies he is proposing would not allow for the cash machine to be free as it still needs to be maintained, filled, connected and bank charges apply which make the model loss making for any operator especially if it is used infrequently. More poppycock from the master of poppycock.

Johnson also talks about wanting ‘a range of bureaucratic and legal barriers to business to be swept away’ to allow high-street shops to flourish. This includes an ‘overhaul of town and country planning laws that mean converting one form of premises ie. a shop, cafe, pub or hot-food takeaway, to another can be a lengthy process’.

One option being considered by Johnson’s team is introducing a new “A” class business category covering shops, financial and professional services, restaurants and cafes. The measure would allow existing shops to easily offer additional services.

He also called for the immediate unlocking of a £675m government fund earmarked for sprucing up high streets around Britain. If he becomes prime minister, he plans to announce this summer the towns that have been successful in bidding for shares of the cash.

Although on paper the overhaul of planning laws looks attractive, the problem is planning laws relating to change of use are not in his power to change, neither will £675m go far and how does he propose to choose which towns are more worthy of the fund? As ever with Johnson’s announcements rhetoric trumps reality.

Meanwhile Jeremy Hunt has pledged to exempt hundreds of thousands of small businesses from business rates if he becomes Prime Minister. Hunt intends to scrap taxes for nine out of 10 high street shops in a bid to save the high street. The claim is the move will save newly exempted businesses up to £6,500 each and will scrap taxes on 24,500 businesses based in Birmingham (5,000), Manchester (8,000), Leeds (6,000), Newcastle (2,000) and Bristol (3,500).

Hunt said that his government would reform the current Retail Discount rate, so that businesses which qualified for the discount would see their entire business rate bill cancelled. At present, those with a ratable value below £51,000 are eligible for their bill to be cut by one third.

Additionally, one of Hunt’s best trailed policy announcements has been a promise to cut corporation tax from 19% to as low as 12.5%, a policy which has been costed at £13bn a year. His generous spending pledges have seen him receive some flak from the Institute for Fiscal Studies (IFS).

Hunt the self-proclaimed entrepreneur is certainly more progressive in his thinking and his ideas may just work to support independent traders on the high street who are being strangled by inflated taxes. The corporation rate cut will pay for itself making Britain an attractive base and undoubtedly bring more corporates to base themselves in the UK and with a No Deal Brexit in site, more initiatives like this is what the UK needs to survive.

The trouble is according to all the polling, Hunt has little chance of getting in. Just like the rest of us, it seems High Street retailers had better batten down the hatches as Tory Party members take the ultimate gamble in installing Johnson in to Number 10.

To read the full article please visit London Loves Business.

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Can the new tranche of Chinese tech brands take the UK by storm?

drum blog

In recent years, more Chinese brands than ever have broken new ground in Europe and continued to develop outside of their established Asian markets. One of the most immediately recognisable Chinese brands is Huawei and possibly Hisense but have you heard of Haier, Oppo or Xiaomi? Chinese consumer electronics brands have recently launched in the UK and are fast gaining traction in their respective categories since being made available on the UK high street.

We live in a society where global brands are the norm. Whilst we are, or at least believe we are, familiar with many of the brands we are exposed to, there are others that we don’t know so much about even if we buy-into them as consumers. Do we care about a brand’s origins and heritage? Or are consumer purchase decisions driven by a products’ look, functionality, usage, price point and status? If this new tranche of Chinese tech brands doesn’t focus enough on building their brands and resonance with the UK audience, will they be able to compete with their Californian cousins and achieve their full potential in the UK market?

Cleverly Haier, the world’s number one major appliance brand in terms of volume bought Hoover Candy, a traditional stalwart of the Major Domestic Appliance market in the EU which enables Haier to tap into the trust associated with a familiar European brand. Now listed in John Lewis stores, there’s brand reassurance of Haier is being established among shoppers.

Oppo, China’s leading 4G smartphone manufacturer, launched its range of mobile phones into Dixons Carphone earlier this year. With flagship models coming in at under £800 SIM free, the brand offers premium and innovative features at a fraction of the price other brands may charge. Time will tell if the brand has done enough to resonate and take a big enough market share and see a return on investment on their ICC Cricket World Cup and Wimbledon sponsorship.

Xiaomi, pronounced ‘ShwowMee’, is actually the world’s most valuable privately held company, and the third biggest smartphone maker, selling 61 million handsets last year. Xiaomi has been bold with its UK launch strategy and has opened a great new Mi store at Westfield White City. The store is familiar looking, sharing many similarities, all be it on a smaller budget, to that of its Californian cousins.

It sells a variety of products from mobile phones, TVs, smart kettles, electric scooters and other accessories in an environment where you are encouraged to play and explore. Its pricing is competitive and it’s certainly within the budgets of a far wider demographic than other brands but what it lacks is star quality. Star quality on build, packaging and its ability to give consumers that ‘feel good’ factor from an anonymous brand is essential if it’s to mean more to consumers. All possible if its proud heritage and brand storytelling was more obvious.

Tell me what Mi means to the technology industry and I may be persuaded to purchase some of today’s most competitively priced technology and become a brand advocate. Hide from me what Mi is and I may react a bit more suspiciously and feel the brand isn’t the best fit for me. Brands, wherever they are from, should be proud of their heritage and success. A confident, honest and ethical brand will help instil the necessary confidence in consumers to help a brand to gain traction and ‘win’ in a new market.

To read the full article please visit The Drum.

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Brand collaboration is the key to a high street retail revival

The Drum Blog

The high street is dying, or so we keep hearing from all angles of the media – but is it?

No. But it is evolving to meet the needs of generational shifts in shopping habits which retailers must adapt to in order to give consumers a desirable experience. Those that respond positively to shoppers and adapt, appreciate the increased value this change offers for potential survival.

Retail is no longer there to serve the customer, it’s the customer who decides if retailers remain relevant to the high street.

Those retailers that refuse to listen are deserving of their fate. It’s not a surprise or the fault of external factors when a major retailer, who failed to adapt, calls in the administrators. Social and economic factors are not going to ‘improve’ as they are proving to be the norm – it’s just how life is now – therefore boards of major retailers need to stop procrastinating and adapt fast.

With 89% of UK sales still generated through physical retail, the desire to shop on the High Street is still prevalent, retailers need to adapt creatively to capture a slice of those sales.

To believe that your exact same format which has been successful for decades remains relevant today is wrong. Millennials are bored with the same format. That’s why they’ve abandoned trusted retailers and by doing so, they are clearly stating that “it’s you, not them” that’s the problem.

Clashing styles

From traditional retail chains to independents and pop up stores, the ones that ‘get it’ are doing so to great effect. Whether it be through introducing speaker spaces within the store, to conducting free classes or work zones to encourage consumers to dwell and soak up the atmosphere. By also introducing other brands to coexist alongside your brand, is winning hearts and minds. Retail is changing. Changing positively but perhaps not fast enough to decrease the failures of trusted retail brands and reduce the vacant units on our high streets.

Debenhams tried this by introducing Patisserie Valerie cafes within their stores which proved fatal for both brands, partly due to their incompetence to manage their finances or understand the consumer. You don’t ‘accidently’ misplace £40m neither do you introduce a traditional patisserie into an already stale retail format such as Debenhams, in an attempt to entice new and younger shoppers. The opportunity to revive its fortunes could be taken from its past when it introduced designer names to its stable with huge success. Those designers are now only known by a generation who are 40+ and irrelevant to the shoppers needed to keep the Debenhams brand relevant on today’s high street.

With Arcadia group also struggling reputationally through the alleged actions of its high profile owner and also financially, they have a huge task ahead to transform. Reducing your retail footprint by closing stores to cut costs is not the solution, change is. But is it too late to turn some of Arcadia’s brands around?

Maybe not. The larger ‘flagship’ TopShop stores do it well by adopting shared spaces that offer consumers other brands or services like piercing or cosmetics to create an immersive shopping experience. Unfortunately, Topshop don’t seem to translate this successful format as well across the regions in the UK. Translating this ‘experience’ model across the entire estate is essential to relate to consumers who don’t necessarily have the means or desire to travel to a ‘flagship’ store.

Placing short term profit over evolution is short-sighted as this approach is somewhat ironic, a lack of investment makes you stale rather than revolutionary, making a brand irrelevant to today’s shopper.

Retailers assemble!

Those retailers who are winning have amalgamated, rather successfully, multiple brands under one roof that complement each other and often work in concert, to offer convenience for the shopper. Successful examples include the Argos purchase by Sainsbury’s and introducing Argos shop in shop (SiS) within larger Sainsbury formats and in 11 stores to include the desirable Habitat brand, which was snapped up by Argos several years back and now revived through the Sainsbury’s acquisition. This has enabled Sainsbury’s to continue trading within the non-food category and remain current without distracting from its core grocery business.

As the pioneer of mail order fashion, reimagining retail seems to come easy for Next who have successfully evolved its physical presence with the inclusion of SiS concepts in selected stores. Brands such as Lipsy, Paperchase, Henna and Costa can be found in the Next Oxford Street store and Mamas & Papas in its Bristol Cribbs Causeway store. Unsurprisingly this approach works for both anchor brand and SiS. With a staggering 2,481 stores disappearing off the High Street in 2018, the opportunity to split the overheads in tough economic times impacted by changing shopping habits, this is a successful combination for both retailer and shopper.

Those who complain that they can’t make retail work need look no further than their competition who are getting it right through understanding the zeitgeist. Shopping habits have changed with generational shifts and the glory days many failing retailers harp on about are not going to make a reappearance. It’s up to retailers to carve out a niche and appeal to the generations who now prefer both the physical and online aspects of retail, but are also seeking convenience and above all an experience.

Experience to try, taste, smell, learn, question, dwell to be part of something that transcends generations and the stereotypes of what ‘Retail’ should be. Retail can be whatever you want it to be.

Successful retail evolves to remain current and relevant to its audience. A retail renaissance is what we need.

To read the full article please visit The Drum.

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The glue that connects all communities

ert blog

By riding a crest of goodwill, utilising new digital channels and tapping into the networks of big brands independent retailers can punch above their weight, boosting sales and awareness.

Independent retailers have long faced competition on multiple fronts. The big threat for many years were the big chains gobbling up the high Street. Now that threat has moved online with digital pure play sites like Amazon eroding market share. The truth is not many customers are particularly sentimental about the plight of some of the bigger chains in trouble. However, the threat to local stores from the likes of Amazon and Omni Channel retailers has been met with much more concern from the public and big brands.

A series of initiatives have sprung up in defense of these traditional bastions of the high street, from independent record store day to independent retailer month. Additionally, reports from organisations like the New Economic Foundation have highlighted the benefits to local communities from spending in independent shops versus bigger stores or online. These messages have cut through. A survey last year by Pure 360 found that consumers are three times more likely to shop in independent stores than large shops in the next five years.

This approach has been noted by large brands who have started to latch onto this trend to boost their own credentials and bottom line by supporting local independent retail. Visa chose to focus its Christmas campaign on local heroes and independent stores. Visa’s focus was on switching the focus of the traditional format of a Christmas marketing campaign, from what people are buying or who they are buying for, to where they are buying things from. American Express did their bit too, with a ‘Shop Local’ campaign that rewarded AMEX customers with a £5 statement credit for shopping in local independent stores.

The digital revolution may represent a major threat to independent retailers in terms of competition, it also represents a huge opportunity in terms of marketing. Independent retailers have always had an intuitive understanding of their customers and this can be bolstered by digital channels. While local newspapers may be closing, local newspaper websites are seeing more growth than ever in readers. The explosion of SMART phones has also led to a huge increase in the figures accessing local radio and content, another great route for independents to get their messages out. This is not to mention social media, both paid and organic with the ability to offer a micro-targeting strategy and hyper local personalisation, enabled by both Facebook and Google. Clued up retailers are seeing the benefit of connecting with increasingly online communities springing up.

In electronics particularly, many product brands are wising up to the opportunity and skill local independents possess. A great example of this is Freeview. The Freeview Retail Development Team are a strategic field team, supporting independent retailers across the UK. The team are unique in that they do not sell a specific product for a specific brand. Instead, the team supports all Freeview (including Freeview, Freeview HD and Freeview Play) enabled products across all brands and stores.

Where some brand teams are selective in their retail support, the RDE team’s brand independence means they can offer the best possible service for independent retailers, cooperating with OEM brands such as Panasonic, Humax, LG and Toshiba to deliver up-to-date training on all products and services.

As well as assisting retailers through training, the Freeview team also supports independents with local marketing campaigns, in the past having managed localised radio, press and social media campaigns supporting selected retailers with a Freeview focus.

Through long-term training support, local marketing campaigns, and regular visits to ensure all staff are knowledgeable on all aspect of the brand, they help to ensure that independents are the destination of choice for Freeview customers. They understand the fact that independents can provide the glue that connects local communities.

By focusing on their strengths, connecting with these bigger brands and tapping into the needs of their customers through targeted local advertising, independent retailers can grow as a destination of choice for customers and become their local hero.

To read the full article please visit ERT Online

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Grab your piece of the action

ERT Blog

With Smart Home product sales set to boom over the coming years now is the time to get in on the action and here, Rupert Cook, Sales and Marketing Director at Gekko, looks at how this can be done.

Here at Gekko we’ve been talking about the Smart Home for over four years now. Back in 2014, we commissioned research into ‘the connected home’ and asked consumers what they thought of having digitally connected devices in their homes. The vibe coming back from the 2,000 respondents wasn’t exactly positive.  When asked about what kind of product they would consider, smart thermostats came top of the list with 44% expressing an interest. Over a quarter said they wouldn’t be interested in any form of smart device.   The principal concerns cited were expense and the technology being deemed as not necessary.

Thankfully for us all, things have moved on from then and the numbers speak for themselves. Analysis by PWC The global market for smart home is expected to be worth $50bn by 2022. Around 30% of people are planning to purchase a smart home device for the home in the next two years and looking at just one product category in the smart home arena, Smart Speakers, further illustrates the potential. In 2017 Amazon sold 33m Echo devices whilst Google dominated selling more than one Home device per second from its launch in October 2017 to mid-2018.

Consumers aren’t only purchasing smart home products; they’re also discussing the merits online. A study by Crimson Hexagon indicates that positive sentiment is growing from 60% to 80% in the last year, another sign that smart home technology sales are poised for blockbuster growth.

So what will 2019 bring for the smart home. Well CES, the annual consumer electronics trade show in Las Vegas, is only just around the corner and a quick search for the subject on their website schedule brings up roughly 100 talks, seminars and events on the topic. Smart home is without a doubt going to be one of the lead stories for many journalists and the category will become more diverse, with new innovations and services coming to the mainstream. Looking beyond just the smart home, it’s worth noting that 5G technology is on it’s way in 2019 as it’s rolled out to certain cities in across the UK. With speeds 20 times faster than 4G, the advance is only going to hasten the Internet of Things and connectivity in general and will in future open up new possibilities for consumers. Everything from refrigerators and window shades to your family car will be linked, while housekeeping robots and next generation digital assistants facilitate day to day activities.

The potential is there for CE retailers to capitalise on the opportunities and as indicated by the ERT Turning Point survey back in October, 45% of respondents have been looking at the Smart Home as a new area for their businesses. There are however challenges that have meant slow consumer adoption. To be successful at selling smart home solutions, retailers need to acknowledge and overcome these barriers.

The perceived complexity of systems is one of the principal hurdles for consumers, so it’s essential that the sales approach simplifies the options available and doesn’t overwhelm the shopper. It’s easy to get carried away and attempt to impress by reeling off the endless possibilities of what can be done; ‘if you buy this, install these, connect it to that, then you’ll be able to get Alexa to run the household…’   The chances are that you’re going to elicit the response ‘Great but I’m never going to do that’.

Our Smart Shopper research from earlier in the year showed that 21% of people love the idea of the smart home tech but were intimidated by the complexities.  Look to address this and you can have these types of customer eating from the palm of your hand.

The idea of complexity isn’t helped by the challenges of market fragmentation. On a typical shop floor, product groups tend to be disconnected – smart lighting, smart speakers, thermostats, security, home appliances etc. all displayed in separate areas. This makes it hard for consumer picture the totality of what’s actually possible within their home. All the shopper can see is competing brands, competing products and competing technologies. There is a general fear that if you buy into a particular brand then you’re on a committed pathway as there is no guarantee you’ll be able to integrate with other devices or solutions.

Retailers must plan, order and merchandise to overcome these inconsistencies and create a conducive sales experience. As an example, the Google Smart Tables in some multiple retailers bring together their devices with compatible third party products such a Philips Hue and in doing so bring the category to life.

Intrinsically linked to the above points is the need for the human touch. For all the great interactive displays that can be installed to bring the concept and possibilities alive in-store, there needs to and effective sales person on hand to guide and advise the customer. Otherwise, what will happen? The shopper will do their own research from the comfort of home before making an online purchase.

In creating effective sales people, the approach to training is obviously fundamental. For retailers, sales teams should be able to present an agnostic solution, understanding the bigger smart home picture rather than focusing on specific product types. Retailers should also tap into the product training on offer from suppliers and take up any offers of seeded or loaned kit, creating users and thus advocates of the products.

Consumer education is the key to expanding the use of smart technology into the modern home and retailers sit on the front lines of that effort. For all the pessimistic talk surrounding physical retailing it should be remembered that it still accounts for 80% of consumer sales in the UK. There’s an opportunity for bricks and mortar retailers to demystify the smart home and become the shop of choice for consumers looking to invest in the tech. And our recently published study shows how shoppers desire great retail experiences, with 81%  claiming the personal touch has disappeared from customer service in modern British retailing. Moreover, a third said that the personal touch is more likely to make a repeat purchase, with a fifth saying it would make them spend more. By offering up a great experience, education, advice, opinions and added value services such as installation, the smart home is certainly a category where you can battle against online retailers.

To read the full article please visit ERT

For more information on our research please visit Gekko.

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Customers want service not sci-fi from high street retailers

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We all know the 2019 outlook for brick and mortar retail looks troubled and indeed it’s barely a month into the year and we’ve already seen Patisserie Valerie collapse into administration. Are we surprised? You only need to look at the makeup of the high street to see the extraordinary amount of competition facing a business like this coupled with the fact that the business hadn’t changed much since its launch. It needed to adapt and if brick and mortar retailers focus on aligning their strategies to current market conditions and take on board what customers say, a one size fits all decline isn’t inevitable.

We recently conducted a survey ‘Service, not Sci-Fi’ that looked at the reasons people were turning away from retailers but also how they might turn back. While cost cutting and staff consolidation might be the first response to disappointing figures, our survey showed this could have an immediate detrimental impact on sales. Our study found that 81% of UK shoppers felt that personal touch had disappeared from retail customer service in modern Britain. Almost a third (32%) blamed an over-reliance on technology for this decline. And half of those polled thought that companies in the UK use technology to save money, rather than improve customer experience.

Despite living in a world driven by technology, most people don’t want technology to sacrifice human opinion and experience. Only 30% said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22% would like to see smart mirrors that show a 360 view of themselves, 16% desire a VR changing room, while 14% want AR for visualise products at home and 9% seek a talking robotic assistant.

When asked what makes a great brick and mortar shopping experience, half of those polled said it was down to having good staff on the shop floor; staff that know the products (49%) and staff that go the extra mile (47%). Coupled with this, 61% of the nation would prefer to deal with someone face-to-face when complaining, while 59% liked a human interaction when enquiring or trying to find out more about a product and 73% wanted to see someone when being issued with a refund.

And back to the impact on the bottom line – a third of Brits say that the personal touch is more likely to encourage them make a repeat purchase, and more than a fifth (22%) claim they always spend more money in a shop if they are served by a good assistant, incrementally adding to sales. Over a third (34%) of shoppers stated that a poor experience has driven them to buy from another retailer.

The research also highlights the impact of the decline of local retailers, with a quarter of Brits saying they miss shopping somewhere where people recognise them and 16% confessing to preferring talking through a purchase with someone in-store, while a quarter reveal that online shopping is less fun than buying something in a real shop. The convenience of a store’s location is also important according to 43% of respondents which means that retailers should consolidate their estates. Many will notice immediate effects. This only emphasises the need to carefully consider the experience provided in-store and whether their staff can deliver the expected experience.

With traditional retail under more pressure than ever and an astonishing 81% of people feeling that the personal touch has disappeared from shopping, businesses need to focus on their customer experience strategies to keep people coming back for more.

To read the article please visit The Drum.

To read more about our Service not Sci-fi research please visit the Gekko website.

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Let’s give retail its pride back

rs blog

Whilst technology can provide speed, convenience and even a wow factor, people are still the key to successful retailing and good sales people give shoppers a reason to visit

Looking at all the analysis and commentary relating to the ‘golden’ quarter trading figures, published in January by the UK’s major retailers, it’s clear that after a dismal November, retailers had to play a game of catch up in the closing stages of 2018. Whilst there were some positive stories such as the ‘very strong’ Christmas eve sales at John Lewis, it was less rosy for many other retailers and in 2019 it will continue to be a tricky path to success.
As we are constantly hearing, UK high street retail is taking quite a bashing but are we really surprised? How long could retail sustain so much online competition?

Everywhere you look another coffee shop or restaurant is opening to fill the empty nests left by retailers of old. We’ve seen changing retail patterns before for example during recessionary times, but this feels very different, almost like self-harm. We’re seeing a complete transition in retail in the UK. Brexit uncertainty is damaging consumer confidence and the media isn’t helping the plight of retail when all you hear is doom and gloom. The notion, right or wrong, sinks into the public psyche. Businesses are going bust, estates are shrinking, and consumers are opting to head online. It’s not a pretty picture and there needs to be a considerable amount of effort into halting the slide.

Whilst some retailers are taking an innovative approach to how they engage with their customers on the high street, many appear to need additional inspiration. I’ve read many articles lately that talk about how technology and innovation will transform the in-store shopping experience and save the high street; self-service checkouts; robot assistants; augmented and virtual reality.
However, a recent study we conducted, titled ‘Service not Sci-fi’ revealed that despite living in a world driven by technology, most people don’t want technology at the sacrifice of humans’ opinions and experience. Only 30% said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22% smart mirrors that show a 360 view of themselves, 16% a virtual reality changing room, 14% augmented reality to help visualise products in the home and 9% a talking robot assistant.

An astonishing 81% of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32%) blaming an over reliance on technology for this decline. And when asked what makes a great bricks and mortar shopping experience, 49% of those polled said it was down to having good staff on the shop floor, staff that know the products (49%) and staff that go the extra mile (47%).

Consumers want to do business with real people and have real conversations. And businesses take heed – a third of Brits say that the personal touch is more likely to make a repeat purchase, and more than a fifth (22%) claim they always spend more money in a shop if they are served by a good assistant, imagine converting that to sales? Over a third (34%) of shoppers stated that a poor experience has driven them to buy from another retailer, not great in the current climate.

So perhaps retailers have got their strategy wrong? Whilst technology can provide speed, convenience and even a wow factor, people are still the key to successful retailing and good sales people give shoppers a reason to visit. If bricks-and-mortar retailing is to thrive it needs to recognise that there is a changing role for stores. There needs to be a shift from transactional retailing to experiential. There needs to shift from till operator to sales consultant. This requires good teams on the shop floor and with all the negative commentary surrounding the high street it is difficult to attract talent but perhaps this is where retailers should focus their efforts?

Retail remains a rewarding career where those involved take pride in the service they provide. This culture should be representative of all retailers, however that’s about culture not proposition. With a change in mindset for both the retailers and their store teams, then it’s possible to bring back the pride in delivering the optimum customer journey and in doing so enhance the experience for all.

To read the full article visit Retail Sector.

For more information on Gekko’s recent ‘Service not Sci-Fi’ study please visit our Research Page.

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