It’s clear that 2020 will go on record as the year that the digital revolution made tremendous strides through the consumer psyche. Online retailers are expected to see record highs as consumers are unable to frequent physical retail locations, with traditional retailers forced to embrace online and multi-channel methodologies in a bid to protect their position within the market.
Read MoreAccording to Futuresource’s latest Consumer Electronics Retail Distribution report, around 10% of all global CE shipments were shipped through the vendor direct channel (i.e. through the vendors’ own physical or digital retail structure). 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. This method of retail has supported Apple’s success since 2001, with the brand growing a strong retail business, which accounted for 31% of net sales in its’ 2018/19 financial year. While other vendors have had a physical footprint for far longer, using their stores to show-room their products and raise brand awareness, the ever-changing retail landscape is posing challenges to established vendors and retailers and forcing a rethink in strategy.
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