Andy Fuller, Retail Design Director at Conran Design Group shares his thoughts on how some mobile telecoms companies could be doing more to safeguard their future.
It often feels like not a day goes past without another bad news story in the retail press, forecasting the demise of yet another pre-loved high street brand. But it seems that some retailers are still failing to take notice and change their brand and marketing strategies accordingly. As a result, some look destined to fail.
In the telecoms sector there are clear leaders but also those who consistently lag behind. Phones 4 U insist on repeating their tactical sales offers, but in a maturing market where their more sophisticated competitors are focusing on innovation and service, can this be sustainable? Perhaps the retailer should take a chance and broaden its offer as Carphone Warehouse has done with its 360-degree technology/lifestyle store formats.
But copycat behaviour also has its pitfalls. 3 Mobile provides us with a perfect example of how brand shifting can be detrimental for growth. In its short life, 3 has changed its store formats on many occasions, often copying and borrowing best practice elements from its competitors. The result is that customers are left without a sense of differentiation for the brand and a feeling of mistrust. Only time will tell if this is a winning formula or last chance at the mobile saloon.
Oh please don’t get me started on phone shops - I hate and loathe them and here’s why.
If I need a commodity (say, a new charger) then I go in, pick one up and stand in the same queue as everyone else, even though half of them will take half an hour because they are taking out a new contract.
What’s that all about eh?
Madness, retail suicide. EVERY time I end up walking out and deciding to buy one online instead as it’s so much easier. Then I go to eBay and pick one up from some bloke in China for a tenth of the price I was WILLING to pay in the shop on my high street, but who lost my custom through poor thinking.
Carphone Warehouse have not only introduced new store format but part of this strategy is their drive to be nice – they are paying bonuses to their staff to be nice to their customers! Apparently sales staff will be paid according to how helpful and polite they are. This will be refreshing news to any customers/potential customers but surely any company that operate within the service sector should be doing this anyway.