What retailers might learn from the streaming industry

Television used to be simple. British viewers only watched the BBC for a number of years until ITV launched in 1955. Sometime later, more choice arrived in the form of BBC2 (1964) and the (then) outrageous upstart, Channel Four (1993). For a very long time, channels were clearly differentiated by tone and output, and the content supplied by each appealed to completely different audiences. Aside from periods of war-time rationing, retail has always been a vividly differentiated landscape. From quirky independent stores to corner shops and high-end department stores, retailers made a point of standing out in their individual niches, aided by stunning buildings and personalised service. Today, there’s a sense the two sectors – broadcasting and retail – are not too dissimilar. Streaming seems to be going from strength to strength. When Netflix entered the streaming market, it quickly emerged as a brand so dominant that it became, like Hoover and Xerox, the byword for the sector. Now that the sector is becoming more crowded, early entrant Netflix is at risk of becoming too generalist. With the likes of Disney +, Apple TV, Amazon Prime and Brit Box proposing carefully curated content for defined audiences, Netflix will need to reconsider its proposition to secure the attention of the market. What can the retail industry learn from the rapid influx of competition in the streaming sector and the niching strategies adopted by its leaders? Each of these new streaming providers has realised that, to stay relevant, they must retain some form of exclusivity, becoming the go-to destination for viewers who require a specific kind of content. Disney+, despite the obvious associations, has gained the rights to produce a range of exclusive content on the back of the hugely successful Marvel Cinematic Universe (MCU). Amazon is taking on terrestrial and streaming, having signed an exclusive deal with the Premier League. International rugby may soon find it is broadcast exclusively on a similar service. What retailers and streaming providers have in common is the threat of many competitors each wanting to increase share and gain loyalty in a market which is rapidly becoming saturated. The streaming market is addressing this by introducing niche strategies and working on securing exclusive, curated content. Target in the US scores highly as a best-in-class example of a retailer harnessing the value in differentiation. In our research, we discovered that its extensive private label offer, combined with exclusive ranges and partnerships with third parties, such as CVS for in-store health clinics, delivered powerfully on differentiation and customer experience. Being able to offer a stand-out, exclusive range with partnerships or acquisitions of digitally native brands is also an advantage. Taking their cue from the success of pop-up shops, retailers can introduce novelty into their own ranges and to the overall shopper experience without damaging or straying from core propositions. It’s also a way to stay on top of consumer trends and use those insights to integrate elements into their own label offerings or future partnerships that will help retailers stay fresh and current. Target also takes care to introduce curated ranges such as Harry’s, Flamingo and Nate Berkus to enhance its own offering. Amazon may well make significant inroads into Netflix’s subscription base in much the same way as it targeted more sluggish retailers. It isn’t the only threat in either sector, but how streaming services have reacted by providing highly differentiated, exclusive content to their respective target audiences is a learning that retailers should not ignore. Rob Nowell, global marketing director, Edge by Ascential

What retailers might learn from the streaming industry

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