In-store politics

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What is it exactly that makes one retail product a stronger prospect than another right now? We listen to pitches from six leading vendors on the devices they claim will offer the retail channel guaranteed sales during the downturn.

The financial crisis has caused many a business to batten down the hatches. Nowhere is this more relevant than in the Middle East retail channel where there has been an immense amount of trepidation surrounding consumer reaction to the global downturn. The question that retailers have been asking themselves is: will customers cease spending altogether, cut down on non-essential products — which could be viewed as a category that a great deal of mainstream IT products fall into — or simply maintain their spending habits under the assumption that the region has been somewhat buffered from the situation?

One of the things that retailers need to count on at the moment is their own judgement of how consumer spending habits will migrate so that they can adapt their strategies to account for changing trends.

There are many factors to consider when making such dramatic plans, but it is absolutely true that product selection is perhaps one of the most important decisions an IT retailer will have to make today.

An appealing window display, attractive offers and the promise of great discounts may well entice the casual consumer into the store, but it is the selection of products — marketed in the correct way and with sales staff fully briefed on them — that will determine whether a consumer becomes a customer or simply walks out empty-handed.

Retailers must also have their fingers firmly on the pulse of popular culture to ensure that they can prepare for the latest consumer trends before they happen. Then there are the business considerations to take into account as well. What kind of margin is a particular product going to offer? What support will vendors provide in terms of marketing and sales training? Does it fit with the existing product portfolio and will it add value to the overall offering? And lastly, does it offer significant up-sell opportunities?

If the answer to all these questions is ‘yes’ then — more than likely — the product is going to be worth the investment.

It is vitally important for vendors to bear in mind what retailers expect from them as well. It is all very well producing the fastest computer, the best-looking notebook or the highest capacity disk, but that becomes irrelevant if they have failed to understand the needs and priorities of the retailer.

At the end of the day, shelf space is rightly of a premium and vendors have to prove to retailers why their products are worthy of the costly real estate that houses them.

With that in mind, we cornered a selection of vendors who claim they have products which will stimulate customer spending. Over the coming pages they explain exactly why their products are worth the Middle East retail channel’s time and investment.

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