Special Current.com.au Feature by Patrick Avenell

Although the DAB+ Digital Radio market has plateaued retailers should still provide an attractive in-store presence for receivers and actively engage consumers to get the most out of each sale, according to suppliers.

Robert Costello, GM of sales and marketing for the Sangean brand Canohm, said sales figures and anecdotal evidence shows a normalising of DAB+ receiver sales, as early adopters are cycled out of the market and the market starts focusing on traditional radio listeners looking to replace a broken or out-dated model.

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“Radio has always been an important medium to the general population and there is no reason to think this will change, especially with the older demographic,” Costello said. “So having a strong radio offer in-store should remain an important strategy to all consumer electronics retailers. 

“A quality radio will always give a better performance than a cheap radio. To this end, Sangean has always maintained its high quality stance to provide the end user with the best possible radio experience. 

“Thankfully, the majority of retailers recognise this and value Sangean’s role within their range of radios.”

Costello said it was now “life today” that retailers would have to offer the cheap models for the less discerning customer, but that doesn’t mean all consumers are penny-pinchers.

“Older people have money and demand good radio performance,” he said. “Don’t short change them selling the cheapest radio you can find.”

Sangean DPR-67 (RRP $139)

According to figures supplied by Commercial Radio Australia, 1.3 million DAB+ devices have been sold since the technology launched 2009. CRA does not break down how many of these devices were dedicated DAB+ receivers, as opposed to, say, a micro system that has DAB+ as a feature.

There is no doubt that much of the initial hype surrounding DAB+ has ebbed away over the past four years. There have been significant delays to roll-out, meaning that while the five mainland state capitals have had access for some time, Canberra and Darwin have not progressed out of trial stage and Hobart and regional areas don’t have DAB+ services at all.

Insiders talk of frustration at the hurdles associated with acquiring the necessary spectrum from the Federal Government and now hesitation over how the new Abbot Government will view DAB+. Furthermore, because there are no plans to ever switch off the analogue system, there is no forced rush to purchase digital radios, like what has happened with the switchover to digital televisions.

Despite this, CRA reports that more than 1.6 million Australians listen to DAB+ every week, which equates to almost 13 per cent of mainland capital listenership. CRA chief Joan Warner has classified this as a “success” and said retailers are benefiting from CRA’s investment in marketing the technology.

The lack of national coverage has hampered retail efforts, however, as it has limited the ability of suppliers to market the products in a traditional manner.

“Perhaps the biggest issue for many retail groups is not being able to promote this category in a national catalogue since DAB+ products are most relevant in metro areas of Australia, and this can certainly limit the potential to create wide impactful marketing opportunities,” said Jim Parissis, marketing manager at Bush Australia, supplier of the Bush and Blaupunkt brands.

For retailers in the cities with DAB+, Parissis recommends merchandising receivers prominently to encourage impulse purchasing.

“DAB+ radios are a cash and carry item, so it is important to make sure that this range is always in an in-stock position to maximise sales in key selling periods like the build-up to Christmas,” he said. “One of the key advantages of this category for retailers is that it is a set-and-forget strategy in key selling periods.”

Bush Heritage (RRP $269)

The CRA had some interesting insights into this ‘cash and carry’ category, demonstrating how quickly a technology can become commoditised in the current conditions.

“Digital radio prices continue to drop, with portable DAB+ radios priced as low as $29. The average price of a portable DAB+ radio has fallen from a high of $112 to $82, a 27 per cent reduction.”

Retailers looking to reverse this trend could adopt these practical sales tips, furnished by Robert Costello from Canohm.

1. The store must have digital radio products on display and highlighted as digital radios.  Some stores are mixing analogue with digital and that can be confusing.

2. Try to ensure you have digital radio reception.  There are ways to achieve this even if your store is in a concrete and steel bunker.  A proper and effective demonstration can make the difference between winning and losing the sale.

3. Know the features and benefits: high quality stereo sound for all stations, additional stations not on analogue, helpful information displayed on screen and easier tuning by station name are the big ones.