Monday Bloodbath Follows Black Friday For Dick Smith

Monday Bloodbath Follows Black Friday For Dick Smith
SHARE
THIS



Black Friday is infamous among Americans and the world as one crazy whirlwind of a day for consumers. BrandData CEO Georgie Summerhayes told B&T how brands can shine through the chaos:

Last Friday was Black Friday in the US, the post-Thanksgiving Day sale when Americans buy consumer electronics.

It’s also an entertaining event for those of us who enjoy watching the wrestling at Walmart. This year’s lowest-of-the-low award goes to the woman who was filmed snatching a veggie steamer out of a child’s hands – the YouTube video has more than 7 million views right now.

This, right after the day people are supposed to be thankful for what they have.

Originally an American invention, Black Friday is gaining traction in the UK and now Australia too; Aussies spent an estimated $73 million in Black Friday sales last week – up 166% from 2014.

But the spending spike couldn’t help Dick Smith, whose share price crashed almost 70% on Monday after it announced a $60 million earnings impairment against hard-to-sell inventory.

So where have the ‘Techxperts’ gone wrong? Is it a product issue, a service issue, or a marketing issue?

Well, according to social analytics firm BrandData’s tracking, the fault doesn’t lie with their online marketing.

Georgie Summerhayes

Georgie Summerhayes

Dick Smith is ranked third of all electrical retailers, behind only Harvey Norman and The Good Guys, with an engagement rate of 0.76%. This isn’t crash-hot, but the category as a whole averages only 0.3%.

Hardly surprising. The electrical retailers are serving the public an uninspiring diet of non-stop promotions, competitions to win products, and sales announcements. There is absolutely nothing about their brand proposition or offering — only price cuts.

This doesn’t bode well for the future. If price is their only differentiator, they will surely lose in the battle against the online retailers.

Once upon a time, Dick Smith did have an edge — after-sales service and tech expertise — when you could “Talk to the Techxperts.” But those days are gone.

“The staff know very little if anything about the products they’re selling,” commented ‘Barters’ on News.com.au.

So there’s a service problem. And probably, a product problem too.

“Dick Smith is the Aldi of home electronics,” runs another comment on the same website. “They sell crappy no name TVs, or brand name TVs you can get cheaper elsewhere.”

Still, Dick Smith’s issues could prove to be a good thing for customers, since they’ve announced a 70% off clearance sale this Saturday to clear excess inventory.

We might even get a few funny YouTube videos out of it.

 

Please login with linkedin to comment

Latest News

Shell & HSBC Launch Global Agency Reviews
  • Advertising
  • Media

Shell & HSBC Launch Global Agency Reviews

Going with ‘new year, new me’ theme, Shell and HSBC are looking to freshen up their respective media businesses.

by B&T Magazine

B&T Magazine
Comexposium Takes Over NZ Partner MTS To Become Largest Trans-Tasman Events Group
  • Marketing

Comexposium Takes Over NZ Partner MTS To Become Largest Trans-Tasman Events Group

Marketing events group Comexposium has absorbed its New Zealand joint venture partner MTS to deliver an expanded event solutions business across the Trans-Tasman. The deal will see Ryf Quail (pictured above) return to Sydney to lead Comexposium Australian and Kiwi team, while his current MTS team remains in place as Comexposium employees. While the business […]

Eyeota Kick-Starts 2018 With $15.6 Million In Additional Funding
  • Marketing

Eyeota Kick-Starts 2018 With $15.6 Million In Additional Funding

Audience data provider Eyeota has announced a $15.6 million Series B capital raise to spearhead additional growth in 2018. The company was founded simultaneously in Singapore, Australia and Europe in 2010, and has remained independent and enjoyed strong growth locally, as well as launching into the US. Peter Hunter (pictured above), Eyeota’s general manager for […]

Poem Wins Four New Clients
  • Marketing

Poem Wins Four New Clients

Sydney-based PR and social agency Poem has announced it has won four new clients following another strong year of growth. The four clients are Property NSW (The Rocks and Darling Harbour), Fantastic Furniture, Ovolo Hotels and Purpose (a conference on purpose-driven business). Poem co-founder Matt Holmes said: “We’ve hit a nerve with clients who are […]

Facebook Makes Another News Feed Change
  • Media

Facebook Makes Another News Feed Change

Social media behemoth Facebook has announced its second major update for News Feed to make sure the news people see, while less overall, is high quality. This week, Facebook announced that the platform will launch a small test in the US focused on prioritising news from publishers that users find trustworthy. Facebook is also exploring ways […]

Attention! B&T’s Inaugural Bootcamp Launches!
  • Advertising
  • Marketing
  • Media
  • Technology

Attention! B&T’s Inaugural Bootcamp Launches!

B&T announces its new industry bootcamp! And, if you're like us & didn't know anything about it, all's revealed here.

by B&T Magazine

B&T Magazine
Domain Boss Antony Catalano Exits
  • Media

Domain Boss Antony Catalano Exits

Mystery surrounds Domain boss's surprise exit, although the Mystery Machine nor a talking dog not spotted at Fairfax.

PHOTOPLAY Offers A Ghost Train Ride Like No Other At Sydney Festival
  • Media

PHOTOPLAY Offers A Ghost Train Ride Like No Other At Sydney Festival

Jasmin Tarasin, director at boutique production company PHOTOPLAY, is inviting invites audiences to take a trip through the inner-workings of the mind in ‘Ghost Train’, her latest multi-sensory VR project set to feature at this year’s Sydney Festival. Working in collaboration with musician and co-creative director Jonnine Standish, Tarasin’s uniquely immersive ‘Ghost Train’ is a […]

March One To Rebrand Fundraising Institute Australia
  • Marketing

March One To Rebrand Fundraising Institute Australia

Independent advertising and branding agency March One has been appointed to oversee the rebrand and repositioning of Fundraising Institute Australia (FIA). FIA is the national peak body representing professional fundraising in Australia. It was established to advance advocacy and professional standards, and has identified the need to better promote its role as the industry self-regulator, […]

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency
  • Advertising
  • Campaigns
  • Technology

Victorian Government Launches VR Bushfire Experience Via The Fuel Agency

As part of its summer fire campaign, the Victorian government has launched a virtual reality (VR) bushfire experience and content series via The Fuel Agency. The VR experience places the user in the midst of a large bushfire, and is designed to encourage people to leave early on high-risk days before it’s too late. The […]

Local Ad Tech Company VeNA Partners With RugbyPass
  • Advertising
  • Media
  • Technology

Local Ad Tech Company VeNA Partners With RugbyPass

ad tech company VeNA has signed an exclusive reseller partnership covering Australia and New Zealand with digital rugby network RugbyPass. Across Asia and parts of Europe, RugbyPass is the exclusive digital rights holder and over-the-top broadcaster for live rugby, including the Super Rugby, the Rugby Championship and autumn internationals, the Six Nations, the Aviva Premiership, […]