Circuit City Gives Up
Replying to: Happy Day! by Americanstud1987
Re: Happy Day!
They were a crappy store anyways. No one shopped there whenever I went in. If you ain't walmart then your not working for me.. Low low low prices. What? Say Who? Low prices! Always, Walmart!! Hahaha
The above quote made me realize that now, to a lot of people, not just products, but stores have become commoditized. Most stores are part of either large corporate chains or they are independently owned franchises of large corporate brands.
Take the average consumer, aged 18-25, and ask them if they are extremely loyal to a particular store. The name of the store probably doesn't matter to them, but factors such as price, convenience, selection, and hours probably do.
There will always be some people who are always after the best brand, like those who shop at the malls for the "latest fashions" from the top brands when they could find similar items at stores such as Target, Walmart, Old Navy, etc. But things are not like they used to be, especially in electronics.
I can remember the Sony name had a meaning of quality. It had a great reputation, great products, and was thought of as one of the top quality lines of products. What do consumers think about a Sony DVD player? A Sony CD player for those with a home stereo? Consumers care more about product features and price, and because of this, many customers opt for other products, such as generic.
There are only a handful of companies that manufacture LCD TVs. Most brands simply take the LCD panel and put in a case with their brand on it, leaving many generics of equal quality as their more expensive counterparts.
If you take a look at HDTVs, for example, you will see many things similar between brands. You may happen to notice that Venturer, ViewSonic, and Philips seem to have the same specifications, the same number and types of inputs, and even the same onscreen menu. With a price difference of up to several hundred dollars for seemingly identical quality, consumers are opting for the lower priced brands, which may often be in-house brands. Apple outsourced the actual manufacturing of many, if not all all Apple branded products to Asus. There are only a handful of companies that make laptop/notebook computers, and often it's just the external case and brand that differentiate the products.
As much as I don't like Walmart as a corporation, they are successful because they have picked up on that. The contract from the big companies for in-house brands in almost all areas of retail. These in house Walmart brands are usually of equal quality of comparable brand-name products, and for good reason, as they are manufactured by the same company. For those of you who can think back about 20 years ago (I don't want to make assumptions on age), how many grocery stores carries in-house brands of almost everything? Not nearly as many as do today.
Globally, economies are changing, technology in our daily lifestyle is changing, our habits are changing, and businesses must change along with consumers. Those who fail to appropriately change and adapt and handle the changes in customer preference and their competitors will fail to survive, and unfortunately for everyone who worked at Circuit City, that company is a great example of failure to adapt.
No replies to this message