The Next Decade
We’d be crazy to predict what the next decade has in store. What we can say is we’re entering a new decade with many people without jobs. And that’s not to mention how many millions have jobs but are underemployed. Receiving a job offer today is akin to winning the lottery. That’s the bad news.
What’s good? There is hope. Hope that we’ve weeded out the Madoff types. Hope that banks won’t repeat their ridiculous lending mistakes.
We also have a little more than hope. Most MI manufacturers are at least cautiously optimistic 2010 will be better. Some theorize it’s difficult to be worse than 2008 and 2009 for starters. We have seen the stock market rise marginally, a signal the economy will begin recovering. Another good, tangible sign: Corporate earnings are improving. Regarding companies with music ties, Apple had a fantastic earnings report recently. Avid Technology’s numbers were much better and it sees improvement ahead.
Retailers have also seen improvement. Several of you have seen things looking better at your stores. But that should be said with one major caveat. Many of you have told us selling high-priced items can be excruciating at times. (See this month’s Music & Sound Independent Retailer for an example). Lower-priced items have continued to sell. The good news there is many lower-priced products offer higher margins than some high-priced counterparts do. Young looked into his crystal ball and made the following predictions: “The Internet will be more of a factor every day for consumers to find anything they need. Are we in the mix and keeping up with customer demand? We have to talk with consumers to find out how they think, how they want their information, and how they buy. The recession will be ending, production will stabilize, and those retailers and manufacturers left standing will be stronger than when we went into this.”
The independent dealer movement could be the most important story of the 2010 decade. Uniting of independent dealers could be the key to their success during the next 10 years. Competition against chain box stores and Internet retailers was a huge story in this decade and is sure to continue. What can independent dealers do differently? How can you compete with Internet resellers constantly trying to undercut you on price?
Technology is the biggest wildcard MI has. We have no idea what the new craze will be. What will be the next iPod? What will be the next Guitar Hero or Rock Band? Whatever the answer is, it will have a humungous effect on our industry going forward.
Perhaps the biggest story in the next decade, or at least for the foreseeable future, will be the several lawsuits the industry is currently fighting. Will we see the end of Minimum Advertised Prices?
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