Always Look on the Bright Side of Life
Wednesday, March 25th, 2009
By Stephen Baker, Vice President, Industry Analysis
It is always great when you can find a Monty Python reference that has direct applicability to the technology world. As any Python fan knows this title refers to a rather ironic song performed during the movie “Life of Brian.” And the idea of looking through the darkness of your current situation to see the good side of today’s events is not a new concept. I have sometimes been accused of offering a decidedly glum outlook on the future of consumer technology. For the most part I am guilty as charged; however, I am always looking for those little tidbits that let me look on the bright side of life. One such tidbit is, counter intuitively, the success of the liquidation sale at Circuit City.
While I am certainly among the last to be ecstatic over its demise I see, in its decline, some sense of renewal. We have been through many major retail bankruptcies in the past few months and of all of those which one garnered the most attention? Circuit City!! The complaints about pricing around liquidation sales certainly pre-date Circuit’s demise but the drumbeat of consumer dissatisfaction around the discounts was a lot higher in regards to Circuit than any other retailer. Did anyone hear a lot of complaining about the price of bath towels and soap dispensers at Linens ‘n Things? Not that I am aware of. And did people storm the doors when Steve & Barry’s or Sharper Image held their going out of business sale? I don’t think so. But Circuit stores were crowded from start to finish, a finish which ended early because of the overwhelming response.
Why do I say all this? Well, while many of us fear for the future growth opportunities in technology after this recession is over due to high product saturation, plateauing technology, a very weak product cycle, and diminishing distribution options, perhaps consumers don’t see it this way. Consumers voted with their wallets, during the depths of despair in this recession. As the stock market was collapsing and the entire financial and economic system was in turmoil, consumers showed that given the right price they would love to pick up a new flat panel TV, a home audio receiver or a nice new notebook. February sales growth in some segments was nothing short of remarkable, much of it driven by the feverish buying at Circuit and some of it driven by the halo effect that drove consumers, stymied by the lack of bargains at Circuit, to seek those products at other retailers. While those of us in the business often struggle to see the “bright side of life,” our customers are telling us they still value our goods, desire what we are selling, and believe that our products enhance their lives. That knowledge ought to be enough for us to strive to provide great new technology to a technology hungry population.
Tags: Circuit City
Consumer Technology | Stephen Baker, Vice President, Industry Analysis | 
March 25, 2009 1:02 pm
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