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Best Buy's new approach

This entry was posted in the following categories: News, Productivity

BestBuyLogo.jpgIn a story from CNet News, with several concept stores located in the Midwest, Best Buy is gathering data about consumer behavior in retail outlets that are quite different from the "big box" stores normally associated with America's largest consumer electronics retailer.

The new stores, with names like Eq-life, Studio d and Escape, are helping Best Buy understand how to improve the shopping experience of a new class of technology buyers.

Consumer electronics are starting to appeal to different types of customers than they did even five or 10 years ago, said Stephen Baker, director of industry analysis at NPD Techworld, which focuses on technology retailers. For one thing, the industry has recognized that women are a driving force behind technology purchases and that traditional marketing strategies don't necessarily appeal to them, he said.

Retailers believe that women want to understand how a technology product works and fits into their homes before they take it home, Baker said, leading to interest in stores such as Studio d that focus on education and a more personal sales approach. Studio d, in the Chicago suburb of Naperville, Ill., schedules classes and one-on-ones focused mostly on the digital camera, in hopes of creating "an experiential environment around preserving memories," Bryant said.

Escape, on the other hand, is going after the customer most retailers covet: the young male video gamer. Most retailers believe this customer spends more money than the average technology buyer and is obsessed with whatever is new and cool, Baker said. Best Buy has to know what this type of customer wants to entice that customer into a Best Buy store, and it can experiment with different strategies at Escape's Chicago store, he said.

Eq-life appears ready to cash in on the needs of aging baby boomers for health products and services, such as pedometers, massages, and yes, personal defibrillators. It has three locations in the Minneapolis/St. Paul area.

Web sites have become the preferred channel for many technology shoppers. But Best Buy, Circuit City and Wal-Mart Stores are still making money on consumers who want to see technology in person before buying it. The idea behind stores like Studio d and Eq-life is to find out how to keep people coming back to retail by offering an experience that can't be duplicated online, and one that's different from typical large retailers.

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