HMV has long been the nation’s favourite when it comes to stocking up on music and games. Many of us have no doubt been known to happily spend a few hours on a Saturday in our local HMV store, spoilt for choice with all that is on offer.
But times are changing.
Over the last 12 months online retail giant Amazon has overtaken high street favourite HMV to become the UK’s leading entertainment retailer.
The first ever entertainment retail impact study
Leading research company Kantar Worldpanel revealed that Amazon had 22.4 per cent of the total market for videos, games and music in the past three months ending on December 26th 2011.
While that may not impress you much, the interesting news is that HMV had a 17.5 per cent share, meaning Amazon overtook HMV to become the UK’s biggest entertainment retailer for the first time.
Strength of e-commerce
Last year HMV had a 19.6 per cent share, while Amazon had 19.4 per cent, so this just goes to show how the huge rise of e-commerce over physical retailers during the past year has affected businesses.
Fiona Keenan, Consumer Insight Director at Kantar Worldpanel, explains: “Amazon’s strong performance is down to a number of factors: it is typically really competitive on price, has a wide range of products with no restriction on display space, and is known for its very good customer service.”
However I think Fiona is missing the point here really. Amazon may have excellent prices and customer service, but I think Amazon’s success can be largely attributed to the shift in society moving towards a world where digital, that is online, rules over all.
What do you think? Do you think Amazon’s success is because it’s better than HMV? Or because of the way we shop has altered?
Have you found yourself buying more entertainment goods online and less time browsing through shops in the high street?
What’s your take on the decline of traditional retailers – would you be upset if you could no longer buy a CD or a DVD in town?