Saturday, February 19, 2005

Retail marketing: in-store television

An article about the increasing use of in-store television.
Last year, the "in-store TV network industry" was valued at $452 million, most of that from ad revenue, according to market research firm InfoTrends/CAP Ventures. The Weymouth, Mass., firm predicts that by 2009, the industry will have grown to $1.1 billion, and an additional $1 billion in revenue will be realized by ad agencies and the stores or other locations that host the networks.

"We believe that down the road this will become ubiquitous in retailing in the United States and Canada," Norman McLeod, associate director of market research at InfoTrends, said. "Retailers increasingly recognize -- and the advertisers and brand managers -- the power of having your promotional message in the store, as opposed to more conventional broadcast media."

Friday, February 18, 2005

Retail success story from China

The Wall Street Journal has the story of a retailing success story from China. 36 year old Jianying Wang started with a fruit and vegetable street stand 15 years ago, and she now operates half a dozen stores around the walled compounds where foreigners live in the Chinese capital. Annual revenue is $3 million. Not only does she deal with typical bureaucracy, the government has also torn down her stores 3 times.

How would you like to operate a business under a totalitarian government? We don't know how good we've got it.

Thursday, February 17, 2005

Retail store success: Out of the Blue

Out of the Blue is a retailer of higher quality, educational toys - dolls, games, nostalgic toys, wooden toys. They have 2 locations in New Mexico and have been in business for 15 years.
There are a lot of quality specialty toy manufacturers who cater to stores like mine. They're having a lot of trouble surviving in these economic times, with continuous pressure from the mass market and big-box stores. If they're having cash flow problems, they're pressured to sell to that type of store. And, inevitably, if they do, it's a downward spiral for them. If they get squeezed, they cut prices and quality. They become a different type of manufacturer.
It's tough to success as a retailer if your suppliers aren't doing well. Everyone has to avoid the temptations of dealing with the big discounters.

Tuesday, February 15, 2005

Fear of click fraud

By 2008, industry research firm eMarketer expects $7.4 billion to be spent on search engine advertising, up from just $108.5 million in 2000.

The success of search engine advertising has substantially raised prices, too. In mid-1999, advertisers paid Overture an average commission of 11 cents per click. By the end of last year, advertisers were paying an industrywide average of $1.70 for the hundreds of keywords tracked by Fathom Online. The cost of prized search terms runs much higher. For instance, the top price for "mesothelioma", a cancer that spurred scores of lawsuits linking the illness to asbestos exposure, recently stood at $51 per click, Fathom said.

Higher prices have turned click fraud into a cottage industry.

Monday, February 14, 2005

Shopping malls with an international focus

Two shopping malls in Washington state have found their retail niche with focuses on China and India. North Kent's Great Wall Mall, which opened more than five years ago, attracts an estimated 40,000 customers every week. They come from as far away as Portland and Vancouver, British Columbia. The new India Gate commerce center planned for the East Hill should also be a hit with shoppers seeking an international flair. India Gate, named for the majestic arch in Delhi dedicated to Indian soldiers killed in World War I, will be a 50,000-square-foot facility with 21 retail spaces, professional offices and a first-class banquet facility.