Uk Music Retailers Essay Example | Topics and Well Written Essays - 2000 words

Uk Music Retailers - Essay Example Just like in any other economy of the world, the UK economy also suffers from quite a number of challenges. Being an important component of the economy, the UK retailers have not been spared from the difficult moments that occasionally characterize the economy. Therefore, some traditional UK retailers such as music retailers who deal with the selling of music CD and VCD have been critically affected. In the past few years, some famous music retailers went bankrupt one after another. Cases in point include the Towers, KPS, and Virgin. Whilst some of the aforementioned retailers were troubled by the market changes, the likes of Find-CD, which is an online music company, were flourishing. According to findings of Traynor (2013) in his research, nearly 140 music retailers are prone to perilous economic period in the near future. A case in point is the HMV music retailer. HMV is credited for having been one of the longest-serving players in the music industry with a history of music retai ling for approximately 91 years.Unfortunately, trends in the recent years spell doom to its operations. Currently, the company no longer accepts gift card payment as well as it has stopped issuing new gift cards in over 200 of its retail stores worldwide. In addition, the London Stock Exchange decided to suspend HMV’s stock trading due to a persistent poor performance of its shares. In a bid to salvage the sorry situation, HMV has contracted Deloitte to investigate the possible solution as well as chart a way forward for the company.... In addition, the London Stock Exchange decided to suspend HMV’s stock trading due to persistent poor performance of its shares. In a bid to salvage the sorry situation, HMV has contracted Deloitte to investigate on the possible solution as well as chart a way forward for the company (Savov, 2013). In 2008, the UK largest music retailer Virgin Megastore faced a host of challenges. This company had stood in London Oxford Street for 18 years. After struggles with its finances and the changing fortunes in the industry, Virgin Megastore decided to sell its125 music retail stores to Zavvi Retailer. This is just but an example of the music retailers that have slowly been fading into oblivion in the UK. The other retailers include MVC, MUSIC ZONE, and FOPP. This closures and acquisition serve to signify the changing market fortunes in this industry. Despite the fact that Zavvi Retailer acquired stores from Virgin Megastore, the prospects of the business seem to be bleak and black. Thi s is because Entertainment UK (EUK), which is the major supplier of music records to Zavvi, has also been struggling to survive. 2. The service delivered by the retailers of music bear a number of characteristics that distinguishes them from goods. These characteristics include intangibility, inseparability, perishability, variability, inaccessibility. It is from this nature of services that the marketers of music face quite a number of challenges as they market the service to the customers. These challenges are as discussed below: Intangibility of music makes it difficult for the customers to ascertain the risk factors involved before they receive the