Wednesday 30 January 2013

HMV failed not only is it undermined by online retailers, but also the wrong retail strategy lead downturn

HMV failed not only is it undermined by online retailers, but also the wrong retail strategy lead downturn.



The relevant chart went up and I said, "the three greatest threats to HMV are, online retailers, downloadable music and supermarkets discounting loss leader product".

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"As for the other two," he continued, "I don't ever see them being a real threat. Downloadable music is just a fad and people will always want the atmosphere and experience of a music store."
It's important to remember that the dotcom bubble had just burst and many people were mistaking this stock market meltdown for an internet meltdown. As we sat reflecting in the pub afterwards we felt decidedly winded by his onslaught - but a few weeks later we were to discover, somewhat to our surprise, we had held on to the business. Virtually none of what we recommended ever saw the light of day but sometimes during difficult times clients simply want the comfort blanket of what's familiar.

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