Interesting... I guess I think that they'll both only survive if they actually address the problems that they had in the offline world. For example, for Woolies I think the problem was that as a generalist store they didn't have anything special to offer, and became a place that we all popped into to buy non-specific items that we didn't have a specialist home. In essence they became a de facto hardware store. I definitely miss them on the high street now that they've gone (where do you buy a washing up bowl locally?), but they couldn't survive selling low cost and low value items on every high street. Personally, I don't think I'd buy that kind of stuff online. Unless I was buying an 'added value' washing up bowl, one that actually does the washing up for me, and I'd go to Lakeland for that. So, I think Woolies online will only survive if they can give themselves a really strong proposition. I'm not sure if pick-and-mix and Ladybird clothes will be enough for that, but we'll see...
As for Dixons...their whole ad campaign seems to be aimed at competing on price against John Lewis, who I seem to remember are never knowingly undersold. I don't know if that will put pressure on John Lewis' price promise, but I don't think that Dixons has a strong enough proposition to differentiate themselves from Comet, Currys, Amazon, etc.
Pingback from Twitter Trackbacks for Woolworths, Dixons ??? can big brands really live on in ???Internet heaven???? - DigiTALK - Blogs - Brand Republic [brandrepublic.com] on Topsy.com
Hmm .... in theory an online-only brand should work if you consider that apparently 65% of people search online for products before buying, and look at brands like ASOS. BUT I also think that many people really do want that multiple channel approach, particularly the more traditional shopper; they might want to look online, but as you have both said, people still like the experience, tangibility and relative 'safety' of a high street shop. I agree with Kate in that it may depend on the offering - Woolies pick and mix online? Surely that's got to be a category kept purely for its PR-angle (and what a good PR angle by the way, but not one that's going to drive sales I should imagine). I think it will be a real shame if Woolies can't make this work - the public were left with a real sentimentality for the brand this time last year, but I think if it fails the second time, it may just drift off into oblivion without leaving even fond memories behind.
PS As for Dixons, you'll notice I haven't mentioned them. That's because I have no opinion on them one way or another; they just don't engender any feeling in me at all, which possibly, on reflection, is part of the problem.
Good points, both. Kate, agree with the fact that they'll need to address the problems they had in the offline world first. It's no use just popping up in another channel and hoping for the best. Carrie, you're right about people wanting a multi-channel approach too. Also, maintaining the sentimentality of the brand will be hard. Half the charm was in the whole experience of heading to town, finding that 'must-have' 7" single and carrying it home in your Woolies carrier bag. You can't do that online.
Comedian Stewart Lee captured some of this in his, not altogether fair, recent stand-up routine on the much-loved brand:
www.comedy.org.uk/.../woolworths
Mark Tomkins, TDA
Blogging for:
Member since: 09 Jan 2009
Last login: 05 Nov 2009
Total Posts: 28