Brand responsibility is growing
Since the end of last year, Ceconomy, parent company of the consumer electronics retailers Media Markt and Saturn, has been making headlines. The reason for this was initially that there was no distribution to shareholders for the 2018/2019 financial year in order to strengthen equity. Since Ceconomy’s independence in 2017, there had been several changes at the top management level. Now, with Bernhard Düttmann as the new head of Ceconomy, a clear line and a new strategy will ensure order and prosperity within a year in cooperation with MediaMarktSaturn CEO Reverter. [1]
We will find out exactly what the changes will look like at the latest when the transformation plan is presented, probably on 26.03.2020 [2]. Previous statements speak mainly of a change in store space and product range, but a centralization process has already taken place within the Group as well. In addition to a central pricing strategy, this also involved assortment and space management [3].
In the name of providing the best possible customer experience, the stores are to be designed in a uniformly appealing manner, which includes reducing the overall floor space, concentrating the merchandise assortment and creating a modern, appealing atmosphere. In addition, the omni-channel concept will be strengthened and expanded. Faster website loading times and an in-house app [4], for both customers and employees, will make the Group competitive in online retailing [5].
Since 2017, we have been implementing specialist consulting for Bauknecht Haushaltsgeräte GmbH in electrical stores. Read the entire case study here.
Consulting is trumps
Based on these trend-setting transformation processes that put the customer journey at the center, the market will inevitably transform more and more into a showroom. In a pleasant, inviting atmosphere, the customer will be able to experience the products of the different brands. This is an advantage that retail, as a central anchor point of inner-city life, will have to exploit at all costs. Shopping as a relaxed leisure activity and inspiration coupled with professional, personal advice is the trump card of stationary retail.
Against this background, and according to the HDE Standortmonitor 2020, easy-to-walk paths and seating areas in electronic stores account for just under 70% of attractiveness and have a 54% impact on the likelihood of purchase. Even more important, however, are and will remain the market’s services. From taking back and disposing of old appliances, to craftsman services and repair services, this is where the most attractive approaches with the highest purchase probability lie. In addition to parking spaces, product availability and good public transport connections, comprehensive on-site advice also ranks among the TOP 10 most attractive approaches with the highest purchase probability [6].
Read our case study on expert consulting and training for our customer Microsoft here.
The eye buys with
Certainly, this also means more responsibility in the market for us and our customers. Thus, a showroom character of the store will strengthen the importance of the shop-in-shop area. This would increase industry dynamics within the market and provide for more brand freedom in the presentation of products. The focus will be on visual merchandising. Seating or polished lounges in the areas will provide space for consultations and the product demonstrations in a casual atmosphere. Brand Ambassadors or Sales Area Managers, who are also responsible for merchandising and specialist advice on site, receive regular training and pass on their knowledge to store staff, who in turn act as convinced brand multipliers, are then confidently responsible for the perfect presentation of the brand at the PoS.
We look forward to the challenge of comprehensive visual merchandising in your store space and guarantee you excellent personnel who will strengthen your sales with the core competence of sound advice and ensure increasing sales. With our BI dashboard, tailored to your needs, you get all KPI’s at a glance. We offer you full transparency of all your data, which you can access and control in detail at any time at the touch of a button. As a customer, you make decisions based on number-based facts. Analyzing has never been easier! Contact us, we will advise you individually.
Against this background, and according to the HDE Standortmonitor 2020, easy-to-walk paths and seating areas in electronic stores account for just under 70% of attractiveness and have a 54% impact on the likelihood of purchase. Even more important, however, are and will remain the market’s services. From taking back and disposing of old appliances, to craftsman services and repair services, this is where the most attractive approaches with the highest purchase probability lie. In addition to parking spaces, product availability and good public transport connections, comprehensive on-site advice also ranks among the TOP 10 most attractive approaches with the highest purchase probability. [6]
Sources:
[1] Manager Magazin, “Media-Saturn parent slashes dividend again,” December 17, 2019.
[2] Stock Check, “CECONOMY: Positive data from HDE on Christmas sales in Germany in 2019 – stock analysis”, January 7, 2020.
[3] RP Online, “Media Markt and Saturn stores to shrink,” December 18, 2019.
[4] Cross Border Magazine, “MediaMarkt offers its customers in-store smartphone navigation,” September 6, 2019 by Nico Hoeijmans.
[5] Merkur.de, “Media Markt and Saturn plan drastic changes – employees also affected,” December 14, 2019.
[6] Source: HDE Location Monitor 2020, GfK Consumer Panels & Services, p. 18.