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How Markets Develop Over Time

The markets in which we operate are changing faster and faster. In this article we will explore this from the perspective of the “Electrical Appliance” market.

Initially there were a number of third generation electrical radio manufacturers who started business by trading simple “radios”. So initially selling a very limited product range from a single  location with a single cash transaction.

How Markets Develop Over Time

How Markets Develop Over Time – The 1990’s

  • Sales £15 million ; Rental £12 million
  • Staff 120 in 34 Retail locations
  • Service & Distribution 150 staff in 5 sites
  • Head Office 40 Staff 1 site
From 22 Specialist Electrical ChainsTo 3 Specialist Electrical Chains
Comet, Currys, Radio Rental
Laskys, Rumbelows, Tandy
Miller Brothers, Powerhouse, Clydesdale
bennets, Atlantis , Apollo 2000 etc
Richer Sounds

Six Reasons For The Change From 22 to 3

  1. Supermarkets
  2. On Line
  3. margins
  4. Property Costs
  5. Power has moved from retailer to manufacturer
  6. Recession

Today things are a lot more complicated

  • Sales £50 million ; Rental £20 million
  • Staff 400 in 42 Retail locations
  • Service & Distribution 300 staff in 5 sites
  • Head Office 40 Staff 1 site
  • Web Sales £24 million  Web Rental £4 million – Staff 70 in 2 sites
  • Trade B2B Sales £16 million rental £1 million Staff 70 in 2 sites

In summary – Shop activity falling, rental and trade growing. The level of complexity is increasing

  • Geographical spread
  • Channel spread
  • Product breadth
  • Skills breadth

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Call us on: 01733 361729

Elements Of A Surviving High Performing Electrical Retailer

  • Their culture puts people staff, customers and suppliers first
  • Mission statement – to generate profits by inspiring customer loyalty through added value services
  • Staff recruitment – choose those with “people skills” i.e emotional intelligence
  • Continuous Staff Training is crucial
  • With performance management empower the staff to set their target
  • Create staff ownership – we have this problem what could we do.

For more information on how markets develop over time and business development information click here . To contact a Marketing and Sales Professional click here

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