Close
 

Dick Smith’s online arm resurrected with below-RRP pricing model

  • News
  • May 5, 2016
  • Elly Strang
Dick Smith’s online arm resurrected with below-RRP pricing model

The relaunch of the Australian and New Zealand Dick Smith websites was slated for June 1, but both sites went live yesterday.

The launch on the New Zealand website has kicked off with a sale that declared the retailer was ‘Back & better than ever!’

It also made the bold promise of ‘the best prices in New Zealand’.

The online store is using the same supplier arrangements and back-end technology as Kogan.com, as well as a fairly similar look.


Koglan's site


Dick Smith's site

This has led to many items being cheaper than the recommended retail price (RRP).

These include:

  • A Fujifilm Instax mini camera 50s in black: $119 on Dick Smith’s site, $245+ elsewhere
  • A Breville the Kitchen Wizz food processor $122 on Dick Smith’s site, $149+ elsewhere
  • A Philips 5W stereo with bluetooth speaker, $59 on Dick Smith’s site, $99+ elsewhere
  • A Lavazza coffee machine with 12 capsules and a recipe book, $314 on Dick Smith’s site, $399 elsewhere

The big question is whether these savings will be enough to encourage customers back to the formerly troubled retailer, which still bears the Dick Smith name and branding.

Dick Smith severely damaged its reputation with customers when it refused to honour customers’ gift vouchers or credit notes during the receivership process.

It also lost consumers’ goodwill when its customer database was advertised for sale by its receivers.

Massey University associate professor of retail management Jonathan Elms said last week this move lost any remaining reputation the business had and recovery would be difficult.

Speaking to Elms today, he said it’s an interesting move.

“Kiwi shoppers, given my observations, are very much price driven and always look for a bargain,” he says.

“It’s almost taken as a given that Kiwis will go into a store and ask for discounts. That’s a very different mindset to what my experience in the UK and places like Singapore is. There, the ticket item price is the standard price you will play.”

Despite Kiwis’ love of a bargain, Elms says he isn’t one hundred percent convinced that this sales-driven approach is going to work.

“I think what they’re trying to do is promote that they’re still around but in a different format and try leverage that as much as possible,” he says.

“The other retailers in this particular space are competing on service, value and other attributes that Dick Smith can’t necessarily offer via this [online] channel, and I’m not convinced discounts will be a viable long-term strategy.”

He said a lot of trust building is in order to repair its damaged reputation, so a sales-focused approach could be problematic.

There’s also the risk of consumers not being able to distinguish between the sales Dick Smith was holding towards the end of its receivership where consumers had problems with gift vouchers and credit notes and the sales on now, he says.

“It could be the case that consumers perceive the inherent problems are still there if they’re tinkering along with the same tactics or strategy.”

However, the site also quotes CEO Ruslan Kogan as saying it would be “investing in building and nurturing the Dick Smith community”.

Elms says the brand investing and contributing to community groups would be a more effective way to restore customers’ goodwill.

“I think they need to do something more long-sighted and if that’s investment in communities, that’s a better way to try maintain or re-establish trust in the brand,” he says.

​ ​

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Direct sales: How multi-level marketing works

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: How multi-level marketing works

The $200 million-plus direct sales economy contains many lessons retailers can use. As part of a wider look at this thriving corner of retail, we created a quick explainer showing how this business model typically works.

Read more
 
 

Direct sales: Meet the upliners

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: Meet the upliners

We profiled different participants in the direct sales industry to find out what retailers can learn from them. Meet Isagenix distributors Adam Nesbitt and Bianca Bathurst.

Read more
 
 

Direct sales: Meet the business builder

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: Meet the business builder

As part of a wider story looking at what retailers can learn from the direct sales industry, we profiled Isagenix distributor Ben Frost.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Concept to closet
Business coverage of New Zealand Fashion Week.
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 
News

Leveling up: Exploring multi-level marketing in New Zealand

Is the $200 million-plus direct sales economy retail by another name or something different? Regardless, what can we learn from it?

 
 

A spectrum of retailers

  • Opinion
  • April 18, 2019
  • David Farrell
A spectrum of retailers

In recognition of April being Autism Awareness Month, retail commentator Dave Farrell considers the role of those on the spectrum in retail.

Read more
 

How on-trend is your retail business?

  • Sponsored Content
  • April 18, 2019
  • Sponsored content
How on-trend is your retail business?

New insights from Visa highlight five evolving trends emerging from savvy retailers around the world. We’ve taken these global trends and looked at how they are playing out with merchants in New Zealand, and we’d now like to hear what you think of them.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}