insight

Commentary

Game Changer

If you are talking to consumers, it makes simple sense to speak their language. It’s a safe bet that those shopping for new TVs or stereos don’t tell friends they are in need of new consumer electronic devices. It’s time for that old language defining one of the most hip and sophisticated marketing categories to go.

A current search of cultural trends literature (using Google’s 5 million book Ngram Viewer) hints that the term “consumer electronics” might just become extinct. From a retail marketing standpoint, a disappearing expression is the antidote to meaningful communications. In a category defined by innovation, the category’s very definition hasn’t changed in 20 years. It’s time to catch up with shoppers. While the term consumer electronics was popular in the 1960s, it peaked from 1990 to 1995 but has steadily declined since. A search today indicates the term only spikes when the annual Consumer Electronics Show is held.

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Marketers shouldn’t be surprised that the stodgy moniker might disappear. The relentless advancement of entertainment and communication technologies, fostering a new breed of electric devices, has given way to words like “connected,” “converging” and “digital.” Have you seen a conversation on Twitter or Facebook lately that discusses consumer electronics?

We didn’t think so.

Consumer conversations today focus on what computers, smartphones and games, tablets, cameras and HDTVs are best and how the devices play into their lives. Consumers expect more from each device, count on each to do more and to make their lives better. In reality, most devices have a life of their own, capable of converging, connecting, and surprising. The term “consumer electronics” (once thought by engineers to be an oxymoron) is not only outdated, it represents a dying definition for a burgeoning category that wants to be so much more.

Yet, many stores still organize these products under the consumer electronics banner. A change in the category definition might just provide the boost the category needs. Surprisingly, sales for the hottest technological toys aren’t meeting expectations. If and when retailers shift the in-store experience away from functional to inspirational, casual shoppers will turn into excited buyers. Retailers will have the opportunity to portray themselves as experts. As complexity increases and the definition of what each device does blurs, early adapters will reign supreme. They will own the retail experience, finding relevant ways of inspiring and educating shoppers and driving them to purchase.

Apple gets it. The experience in its stores is consumer-centric, comfortable, and classy. Cool, too.

ZipCars is also savvy. Like Apple, it’s rapidly moving away from old ways of defining and doing things, moving from habit to expectation. Essentially a traditional rental car company, ZipCars is successfully bucking the status quo and developing a whole new market based on what its consumers are really looking for.

And Disneyland — no longer an amusement park but a place where “magic happens.” Think of the expectations that definition can answer and the doors it opens for Disney marketing. Disney stepped away from describing what it actually built and gave guests permission to dream about how they will feel while visiting its parks. Retailers would do well to bring that type of inspiration into the shopper’s experience in the store.

In reality, reflecting what is actually happening, the industry itself is moving away from using the words “Consumer Electronics” in its own communications:

  • Connectivity and convergence of devices are noted as major industry trends in many reports
  • Consumer Electronics review sites frequently use the terms “technology” or “gadgets” to describe themselves
  • Online brand voices and social media buzz indicate consumers now perceive brands on a spectrum from product-focused to experience- focused

A more accurate and inspiring name can announce the beginning of a revolution in the way to market devices at retail. How consumers are living today, how they connect to the world, and where they are going to be in the future is going to make it happen.

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