Thinking SURVIVAL

Budd Margolis - March 14, 2023

Visual Marketing, TV and eComm Expert

London, UK

The impact of technology on television viewing has been revolutionary with many younger viewers abandoning the medium entirely. That is not to say TV is dead, just on life support before streaming completely eliminates the control of major national and corporate networks. The old format of scheduled shows aimed at the mass market has been replaced by on demand, any time, anywhere and always available.

Binge watching, social watching and participation watching have emerged along with social media and the various streaming platforms from Netflix, Disney, Apple, Prime, Hulu and on and on.

The impact on advertisement, marketing, direct marketing, DRTV and TV shopping has been like a roller coaster. This is because of a downward trend pre pandemic to meteoric upswing during the pandemic lockdowns and then a negatively turbo charged boost from a war in Europe.

The next logical strategic decision must be based on elements of vision, risk and a combination of knowledge and experience. Several elements which, depending on the situation, require a balanced approach. That may sound like an easy exercise but few get it right and it always takes longer and costs more than anyone plans for. In the meantime we will see a continued stream of adjustments that will increase consumers' doubts and stress.

The consumer society is so fragile that any event, even a Silicon Valley Bank (SVB) collapse, can tip the balance. Consider the implications for your business and life before turning off and watching a cat video. I will now use the TV shopping industry, both recorded and live, as an excellent example. I know some of the metrics, having participated and investigated this industry for nearly 40 years, and it is an excellent bell-weather for up to date consumer behaviours.

So, let's take a look at the state of TV shopping, a direct sales industry that is in serious trouble after nearly four decades of generating billions of dollars in annual revenues. The power of visual marketing has tarnished with the explosion of choice in entertainment and products via Amazon and others.

In my opinion, what ended up wrong was typical of a large corporation with too many managers. This included the elimination of people who knew what the original selling system DNA was. They lost touch, did not pivot or create original and enticing formats. It looked like they did but their social media and web only transferred existing consumers to different platforms. This did little to introduce new, and perhaps even more critical, younger customers to their format.

A lack of vision prevents people from making experiments and accepting some failures along the way in order to create something original, or revolutionary, that works, is that right? Probably, but also the greatest predator competitor came into the market. This competitor destroyed not just the high street but many in the digital commerce industry. In the world of online shopping, Amazon offers a wide variety of products, customer reviews, ratings, and delivers so quickly that it is difficult to compete with it. You might want it cheap, or fast or high quality, but can you provide all three? Amazon does and also provides so much more with their video, music and prime deals. And their expansion plans seem to be performing better than their competition. From food to medicines, drone delivery and a fleet of planes they seem capable of doing it all and across the planet.

Even Amazon is adjusting but they have the power to move markets and are worthy competitors. I often think of them as an ancient Roman legion in warfare using the testudo?or tortoise formation. This formation of raised and side protected shields provided a cover and side wall formation.?Troops regularly ,trained and perfected this tactic which was effective for several centuries. Change was slower tin the past,, but nowadays, change occurs so fast that the lifespan of companies continues to shrink. A century ago, a company could expect to be around for eight decades. Today companies average below ten years.

There are no simple and easy fixes. All I can say is that we have to be looking around the corner for the unexpected and plan to manage times when everything is great. We will also face times when the drought comes. The environment and economy are under stress at present. You have to do more than you normally do to sell more. You have to create better products and services in order to remain sustainable.

Now, the formula for success seems simple but it is anything but. As supply chain interruptions, labour issues, bio and enviro issues, war impacted energy costs and confidence wane. Therefore, we have to create exciting , innovative and even risky experiments to discover formulas that work. Once we find them, we must not think they will last. Keep pushing the envelope or you will lose your market share.

China leads in social media e-commerce and marketing, but it is difficult to translate one culture's trends to another and some cultures will not respond to this format. And the format has done itself damage by not adhering to some moral disclosure of sponsored or bought endorsements. Trust is everything to consumers.

Asian TV shop channels differ from the western or QVC model in that they are more hard sell and accept sponsored exposure. Their web sites are long and crowded which fits their style culture. In many ways the Asian and African markets have skipped over what the West developed. Mobile has become the new banking and transactional system.

Consumers depend on trust and consistency. This delivers a relationship and repeat business, which increases consumer value. Few do this as well as QVC which has an average price below $60 USD and an average annual value of $1,400 USD. Their problem is one of a shrinking consumer base which is part age and part competitor related. The solution is to take the high ground and strive for superior customer service and quality products at a fair price. They are trying to deliver quickly, but this is an expensive investment at a time when staff will continue to be trimmed.

What worked still remains relevant and valued. The format method was not about entertainment but delivering a benefit which was product education about quality products, convenience and value. What is missing are exclusive products and deals. Somehow, management thinks this is an entertainment medium. Clearly a TV shopping channel is not designed to compete against binge-watching loyal Ted Lasso or Game of Thrones viewers. Sales is a science and it is OK to enjoy the process, to have fun and be intellectually stimulated. Celebrities do draw audiences and increase sales, but the future of TV shopping has to create new opportunities and systems while slowly changing the system that is deteriorating. The expression of throwing the baby out with the bath water can be adapted to this situation by stating we should not toss billions out the window while trying to invent proper plumbing and fresh & pure water supply.

And we also have to consider that stability beats short term growth if it also provides innovative and desired products that consumers depend upon, trust and admire. Delivering this delight will never fall out of fashion.

Throughout history, even in severe times, economic activity continues.?It is only when devastation to our society, war, flood, quake, global pandemic..., that the system is disrupted.?People have always innovated solutions and changed when they had to. Companies should hold discussions with staff and plan for natural as well as unforeseen possible disruption.

Few will get this right, and many will leave the industry. However, consumers will continue to support those who pivot and work to create a vision that never stops innovating and treats them as valued customers.