Both the Harris Interactive
report on ‘Screenlife’ (July 2012) and OFCOM ‘Communications Report’ (July
2012) noted that the 35 to 55 group has already become switched on to mobile
technology and the rise of digital ebook readers, smartphones and tablets.
Smartphone penetration is now up to 39% with 80% of all UK households having
internet access and tablet ownership increasing over the last twelve months
from 2% to 11%, with 17% expressing the intent to purchase in next twelve
months. Some 16% of the tablet ownership is within the 45 – 54 year old market
and some 19% are A and B social grouping.
Interestingly, 10% of the UK population now owns an ereader
device and this increases to 15% within the 35 to 44 age group. There is a
clear indication that both tablet and ereader usage is home and family based
with 67% of ereader usage being at home and 66% of tablet usage being shared
with the family. This group have also been heavy adopters of digital ebooks
(see OFCOM report) with genre such as romance, historic romance,
and erotic fantasy, crime and thriller being in high demand.
Today Barnes and Noble announced their initial retail
partners in the UK and the question is whether this will make any difference.
John Lewis is their ‘premier retail’ partner but they already
sell Kobo, Kindle and were one of the first to sell Sony readers. The question
is why they are seen as the premier retailer? They literally will sell the tin
and the Nook will line up in a ‘beauty contest’ with the rest. Unless hard
money is spent on brand building, one fears they may not even pass the ‘so what?’
test and the winner here maybe not down to who has the best bikini but who is
known and is a trusted investment.
Argos is pitched at being well placed with 700 store to ‘touch
the UK population’, but again is already selling Kindles and Sony readers and a
host of other devices. It is questionable whether their demographic matches John
Lewis and ebook reading and therefore Barnes and Noble may have challenges in
building the brand awareness they clearly don’t have today in the UK.
Blackwell’s also sell Sony readers so have the same ACS4 DRM
allowing the ebooks should play also on the Nook . However, Blackwell’s 18 months
ago gave poor customer service and offered no in store experience, so it will
be interesting how staff are to be trained and rise to the challenge. The other
question is why they couldn’t do it for Sony who had a stronger brand awareness
in the UK than Barnes and Noble have today.
Foyles already have a relationship with TXTR, so are they to
ditch that to sell the Nook and Barnes and Noble inventory?
By entering the UK market when the device battles have been largely
fought and the competition is installed, are Barnes and Noble going to make a
difference? At best they may equal their US second place, but unless serious
money is put on the table to promote their brand, build a credible in store
experience and convince the public they are a real player in the UK, it is
questionable whether they will achieve that.
It isn’t about devices any more, its about platforms. Its
about branding and experience and with Amazon its about loyalty, price and
service. Amazon has a UK base understands the UK market and can position its
offer and content accordingly. This is the first time Barnes and Noble have
attempted to come past the Eastern seaboard. Will they tailor their offer to
the UK or merely rebadged it with a UK sticker?
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