Monday Bloodbath Follows Black Friday For Dick Smith

Monday Bloodbath Follows Black Friday For Dick Smith

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

Designworks holysmoke! keeping up with the joneses

Latest News

Slew Of New Promotions & Hires As Thrive Announces Melbourne Leadership Team
  • Marketing

Slew Of New Promotions & Hires As Thrive Announces Melbourne Leadership Team

Thrive PR Melbourne has kicked off the year with new appointments, promotions and a new leadership team, marking the delivery of a transformation strategy that’s seen the agency diversify and strengthen its corporate, consumer and integrated digital service offering in Victoria. Lead image:  (L-R) – Sophie Maguire, Melanie Campbell, Nathan McGregor, Zoe Raknes, Erika Rutledge, […]

Leos Appoints Clare Pickens As CEO
  • Advertising

Leos Appoints Clare Pickens As CEO

Reports of Pickens demanding new corner office with wingback chair greatly exaggerated, says Publicis PR team.

Russel Howcroft & Freddie Young Headline AdMission Podcast
  • Advertising

Russel Howcroft & Freddie Young Headline AdMission Podcast

Iconic Australian ad guru Russel Howcroft and industry up-and-comer Freddie Young from Good One Creative have today launched their experimental, no spin advertising podcast, AdMission, in partnership with 9Podcasts. AdMission tells the uncensored stories behind the world’s most talked about brands, ideas, campaigns, advertising news and industry screw ups, as well as offering sharp insight […]

CPR First Aid Study: Weight Loss & Healthy Eating Among Most Googled Personal Goals
  • Marketing

CPR First Aid Study: Weight Loss & Healthy Eating Among Most Googled Personal Goals

According to a new study from CPR First Aid has revealed that Aussies’ most Googled personal goal in the summer is losing weight, new research has found. Their next most researched summer objective is healthy eating, followed by drinking more water. This time of the year, Aussies want to stop snoring and quit smoking more […]

Twilio: Customer Data Platforms Are “Critical Foundation” For AI-Driven Customer Insights
  • Technology

Twilio: Customer Data Platforms Are “Critical Foundation” For AI-Driven Customer Insights

Businesses are integrating customer data platforms with AI and analytics to personalise customer experiences and drive business success, according to a new report from Twilio Segment. Lead image: Kathryn Murphy, SVP of product and design, Twilio. The fifth annual Customer Data Platform Report, which reflects the findings of anonymised usage data from Twilio Segment’s more […]

Word of Mouth Digital Welcomes Six New Brands To Its Growing Portfolio
  • Marketing

Word of Mouth Digital Welcomes Six New Brands To Its Growing Portfolio

Word of Mouth Digital, a Sydney-based full-service digital marketing agency, has announced the addition of six diverse brands to its expanding client portfolio. Lead image: Alex and Tash Williams These new partnerships span various sectors, including pet care, cognitive health, home construction, wellness, and retail, showcasing the agency’s commitment to fostering growth through strategic collaboration […]