Christmas comes but once a year, so target customers with what they want and capture your share of that lucrative seasonal peak in sales, advises Gekko managing director Daniel Todaro
It’s Christmas and there’s nothing that gets people more excited than the gift of technology.
We Brits rack up a staggering £11 billion on credit cards to fund the ‘perfect’ Christmas and we start early. More than a quarter (27 per cent) of shoppers begin their gift shopping in the three months before the big day and 48 per cent just one month before. So it’s time to start your Christmas ranging.
In this world of plenty, deciding what to stock can be a difficult decision for a retailer, so keep it relevant to what your consumers either need or desire. To do this, it’s essential to be in tune with your customer base and the latest trends. What was selling five years ago may not be relevant today.
A good place to start is a category that’s most definitely relevant – the smart home. Listen to your peers and follow the advice of the ERT Turning Point summit participants: “All it takes is a small bit of space to introduce the smart home to your store – even just a metre square is enough to bring a whole new category to your customers”.
The smart home is a great opportunity for retailers looking to widen their customer base. With the smart-home market expected to be worth £53.4 billion by 2022 – an annual increase of 14.5 per cent – it has been assisted hugely by sales of ‘smart’ speakers from brands such as Google and Amazon.
Google has integrated its Google Assistant into products from other brands, such as Sony, Panasonic and JBL, increasing reach and popularity. Amazon Echo and Alexa is also being integrated into speakers and soundbars from Yamaha and other smart-home devices, such as thermostats from Hive.
Further proof as to why you don’t want to miss out on the action is the fact that 42 per cent of these smart speaker ‘early adopters’ have gone on to buy a second device. The message is clear. The smart home is here to be expanded in your range plans and with smart speaker products available from £49, ranging needn’t be an expensive investment.
The decision to range smart speakers can be justified by the fact that demographics indicate some users have never bought actual physical music. When you consider that 52 per cent of all music streamed is by the 16 to 24 age group, it’s clear to see why the wireless speaker market is set to increase 21 per cent in 2017 – equating to 55 million units shipped globally.
A study from Nielsen affirms that connected technology is the highest use of media devices among 18 to 24-year-olds, and this age group uses connected tech five times more than those aged 50+ age. That will not only grow, but also change to include older age groups very rapidly, as the smart home becomes a mainstay for all.
Music on the go is another growth sector opportunity, with headphones set to increase four per cent to 368m global unit sales this year. Premium audio brands are increasingly moving towards wireless technology, meeting the needs and expectations of younger generations. As consumers favour the wireless approach to music and media on the go, retailers need to be able to match this trend and also consider compatibility for iOS or Android devices – not all headphone products will work on every device.
The smart TV category continues to grow and is, of course, relevant to retailers in the run-up to Christmas. In the EU, smart TVs account for 57 per cent of all TVs sold, which surprised me.
It does, however, demonstrate that there is a continuing market for smart TVs and, more importantly, an opportunity to upgrade customers.
With UK shoppers spending in the region of £474 (£305 EU average) on around eight people this Christmas, the need to meet the magic £59 price point in your ranging is essential to capture the 73 per cent of sales achieved in retail for at least one gift.
Giving shoppers this experience on the shopfloor is what can set independent retailers apart from multiple and online retailers.
Off course, an omni-channel approach should not be ignored and where you can’t physically display products because of space restrictions, implement a system that enables online ordering and 24-hour click and collect from your store.
And remember, the smart home is not just for Christmas – so embrace it all the time.