retail consultants

Books are a source of knowledge, inspiration and escape.  From Chinese silk to dried palm leaves, paper to portable devices, the book industry has and continues to undergo considerable transformation.  Similar to the time of music digitalization, retailers are once again at the nexus of this evolution. 

The limited availability of the e-book devices at retail locations indicate the change is still in the early stages, as the devices have yet to filter through to the masses.  The underlying impact of e-books on the retail industry is therefore still unknown; however, there are already pros and cons with implications for retailers:

Pros

  • Selling opportunity for two products: e-book readers and the e-books themselves
  • An increasing demand in the hardware to benefit electronics retailers and experts
  • Reduction in distribution and shipping costs
  • Faster delivery to consumers (Amazon reported selling more e-books than physical books this past Christmas).
  • Potentially “unlimited stock,” based on retailer and publisher agreements
  • The past trials and tribulations on copyright issues within the music industry have paved the way for an easier entry of other industries, such as books; the growth of iTunes has also set forth a model. 
  • Cross-channel retailing best practices will assist retailers to meet the needs of consumers who like to ‘see and touch’ the product prior to purchase versus those who are readily willing to download the e-books
  • Development of new and unlikely relationships – think Starbucks and Barnes & Noble, so why not airlines, hotels etc.


Cons

  • Scrutiny of customer rights.  The prime example of course is Amazon’s erroneous sale of an e-book to which it did not have the rights to last summer.  The retailer then remotely deleted the book from consumers’ Kindles.  The wide reach provided to retailers, in a digital world, will continue to come under scrutiny as consumer privacy and security remains integral to customer satisfaction.
  • Increased piracy of copyrighted e-books and the resulting loss of revenue
  • Current lack of standardization of e-book formats or e-book readers


 
While e-books parallel digital music in a multitude of ways, there will not be much of an opportunity to sell ‘single songs’ or individual chapters of books, with the exception of some forms (e.g. text books, short story compilations).  Rest assured however, new pricing models are brewing, but it appears e-book sales will be better able to stay intact.  In addition, book retailers, unlike music retailers have learned from their industry counterparts.  The entry of Barnes & Noble’s Nook or Amazon’s Kindle, signify the active role traditional retailers are already playing in the book industry’s progression.
 
As general retailers also reassess their roles in the face of this evolution, ensuring that their product offering (both e-books and the readers) is as wide as possible will determine their ability to thrive in the early stages of this change as they compete against book and online pure-play retailers.

Questions such as ‘what will the book store of the future look like’ still remain, however there are certain guarantees during this phase.  E-books and the e-book readers have the potential to change everything from the product and pricing models to the consumer experience.