Retail News South Africa

Retail outlets the new media channel

Some three years ago, the Chairman of US company Digital View, James Henry, predicted that retail outlets will emerge as a new channel for media, as innovative retailers and brands invest in in-store video media systems to improve communications with customers, strengthen and maintain brand messages and not least to boost sales.

He was, to a large degree, correct in that - in cosmopolitan cities with large populations like New York, London and Tokyo - retail outlets have increasingly installed some form of video system ranging Installations can range from one up to several thousand displays across a chain of stores for which the audience numbers can be very substantial.

More recently, the most savvy are doing it with 'connected' systems that allow remote updating over the internet.

South Africa's cities have, for the large part, lagged behind their international counterparts but that is set to change.

Video as a local in-store marketing medium has been interesting to marketers since the first VCRs and PCs became available. In South Africa, various factors have contributed to the fact that in-store digital displays have not been regarded as an important part of the marketing mix for retail brands.

These factors range from the inadequacies of the technology and the human intervention required to drive it, maintenance issues and lack of ownership or responsibility for ensuring the technology works on a day-to-day basis.

However, the environment has changed - local customers have become more sophisticated and are demanding extensive information, demonstration and entertainment at the point-of-purchase; producers are looking for ways to present their image/philosophy, unique selling points (UPS's) and services; and retailers wish to provide improved ambience to enhance the shopping experience.

Fortunately, the recent convergence of various technologies has caught up with the need to use video as a marketing medium. And they do, to a large degree, do away with the factors that have hampered in-store media's popularity.

These modern systems are reliable and deliver high quality results. The solution imported by iMedia is said to be far superior to current in-store digital media driven by video or DVD technology. This new solution utilises jpeg or mpeg still pictures and mpeg1 + 2 videos for continuous play back or interactive presentations to replace these video recorders or DVD players.

An added benefit is the flexibility of the technology. Unlike existing modules, it can allow for passive displays as well as interactive. The display stands themselves can be graphically wrapped to complement the brand being advertised, or the housings can be custom-built.

Also, the units have automatic start and automatic looping. This does away with the need to reboot the computer and starting up the programmes in the event of a power outage.

As brands and retailers continue to roll-out more display systems, the opportunity for developing creative content solutions will grow and In-Store Media will grow as an important sector for video creativity.

About Conrad Kullmann

Kullman is the sales and marketing director of 3D Design, a company specialising in turnkey solutions for the exhibition and trade show industry. iMedia is a new in-store digital media importing company started by Kullman to source digital in-store products from global best-of-breed suppliers into South Africa.
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