PC Subscriptions For Millennials, Why Retailers Need To Copy What Lenovo Are Doing
COMMENT: Lenovo’s decision to move to a subscription model is very smart and one that I believe is the future for the way that millennial consumers get access to the very latest in consumer electronic products.
It’s also the way that retailers need to go not just with PC packages but appliances and entertainment products.
Lenovo has a stunning range of PC’s and their Think Pad range of B2B products is among the best business products in the market today. To be able to get a PC, apps, and a smartphone on one monthly rental will appeal to today’s millennial consumers who is renting homes over buying.
Shortly Foxtel will launch their new iQ4 box and Australians will be able to get access to real time sports spanning Cricket, NRL and AFL streamed directly to a 4K UHD TV, so what’s to stop a JB Hi Fi or A Good Guys bundling the new iQ4 box a 4K UHD TV and a 4K soundbar into one subscription package.
They could even do it for a new home starter pack where one gets a microwave, washing machine and dryer along with a Stick Vac on one monthly subscription. Or
It not only delivers better financial management for a consumer it also creates a direct relationship between a consumer and a retailer for future marketing of add on products to a subscription package.
This is not a new concept as the Telco’s in Australia have been doing this for years.
What manufacturers are going to struggle with is the this goes with that factor. Where multiple brands can be configured into one subscription package.
As for retailers that can not only display and show what products a package they can use configurators on the retail floor to configure the deal on the spot.
Right now, retailers have to think outside the box as more and more manufacturers are currently building out direct sell web sites. Sony, Sonos, Lenovo, Samsung are just some of the brands that EDM marketing consumers to buy direct. This is not going to go away.
What retailers have to do is give partners a reason to stay a partner and the concept of subscription appliances, PC or consumer electronics products is an excellent concept that I believe could catch on quickly in Australia with the fast growing millennial consumer.
The Millennials are the now largest generation in Australian history and they are now are entering their peak spending years. Retailers have to respond to their growing economic influence as this is a generation that’s really grown up being connected online.
What retailers need to need to do is be present and connected with these consumers, in ways that they have not done before, and this means delivering a new way to get access to products.