Research shows online market and JB Hi-Fi the downfall of Dick Smith
In the aftermath of Dick Smith’s fallen electronics empire, Roy Morgan’s data has shown online shopping and a failure to compete is to blame.
CEO of Roy Morgan Research, Michele Levine said that while it’s obvious online shopping has been a game-changer in the electronics market, Dick Smith couldn’t even pull customers to its website last year.
“While Dick Smith does have e-commerce platform, this attracts a negligible proportion of its total customers,” Levine said.
“Many businesses operating in this field could learn a lesson or two from Dick Smith’s downfall, starting with the importance of always ensuring the customer is happy.”
Roy Morgan data showed Dick Smith had a customer service rating of only 82% in 2015. Compared to their competitor JB Hi-Fi with a 91% rating, this is a stark difference given they had an even larger customer base at the time.
Dick Smith currently owes its secured creditors around $140 million and unsecured creditors approximately $250 million. The company who received Dick Smith, Ferrier Hodgson, said they’ve had at least 40 expressions of interest to buy the company in administration. But Dick Smith may need to sweeten its customer base if it is to trump international electronics websites that ship to Australia.
Another iconic retailer to shut its doors this year will be fashion and homewares retailer Laura Ashley who announced the company was going into administration shortly after the news of Dick Smith’s grim fate.
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