CD Replication & DVD Duplication Services UK  CD Duplication & DVD Duplication Services UK

HMV in administration – what next for the music industry?

Let’s face it – the writing has been on the wall for a while now and HMV have gone into administration. The fact there appears to be interested parties in buying the company does hold out some hope for our high streets to retain a genuine music product outlet but inevitably it will mean fewer stores nationwide and therefore not quite the prominence of old. But what has gone wrong and what could be done should a buyer come forward to prevent repeat?

Well HMV themselves of course have blamed all except themselves! Ever falling sales due to online competition, supermarkets offering cut price deals, downloads taking over from physical product and no doubt higher rates to pay for premises but are all these purely the reason why they should have failed? I for one thinks not. First and foremost, customers want value and in the current economical climate, every penny counts. It is therefore logical that few people are going to pay ten pounds for something they can easily get for eight for example (on like for like product). It is therefore imperitive for any business to compete when it comes to price. Not that difficult to figure out really and surely it is better to sell higher volumes at a smaller profit than insufficient volumes at higher margins? But is it really just that simple? Probably not but maybe here are a few other scenarios that could be considered that would give the likes of HMV the edge..

Lets compare the competition with supermarkets. They are only stocking the typical chart and X Factor stuff because they have small space for entertainment and it is not their hardcore element of business, simply a “while you are here” option. Amazon now for example have no space concerns and therefore no lack of product range but they have no showcase possibilities. HMV on the other hand have large stores dedicated to media products and therefore can offer the full range other than just the chart and x factor stuff and they also have a “venue” where customers can visit. Why call it a venue? Well consider putting on a regular event to attract visitors – something Amazon couldn’t do – and while the visitors were there, more often than not sales would be made! The event need not cost as there would be thousands of unsigned acts, with local interest to any particular store who would love to highight their new album and have it available to buy in store! Free concert, promoting new artists, more store visitors who “while there” may well also buy a game or DVD…… it’s what used to happen (in fact Elgar opened the first HMV store) and it worked then so why not now?

I certainly hope HMV remains but I also hope it changes its views and helps the actual music industry as a whole because I for one believes there is a genuine demand and need for retails outlets within the industry and if used properly they could just help in showcasing a great number of artists who are too good for X factor but otherwise do not get heard! Digital Disc Duplication are providing the lowest CD manufacturing costs in its history and therefore margins from manufacture to retail remain decent enough for business to work with slightly lower selling prices.