i3 - September/October 2018 - 46

Business

By Steve Smith

Supporting Young,
Independent Tech Retailers

ome might ask, "Why would anyone want to be an
independent tech retailer today?" This is a relevant
question with all the headlines about Amazon Prime,
the incredible shrinking Sears, the demise of Toys R Us, and
other dire retail headlines.

The truth is, plenty of young entrepreneurs want to become independent
retailers. They know that in a world of
international corporate giants that dominate the industry, there is still a niche
for regional dealers that can sell profitably and provide hands-on service of
tech and related products.
This generation's emerging retail entrepreneurs know millennials and others want
to buy local. They can see the rewards of
inheriting a family business, or buying an
established independent from a founding
family willing to sell, and using today's buying groups' purchasing power and internet
marketing capabilities to establish themselves as profitable dealers of major
brands in local counties and cities.
46

SEPTEMBER/OCTOBER 2018

This may seem like heresy for some
industry veterans, but in hindsight during the booming post-World War II era
it was a lot easier to enter the business
than someone starting or taking over an
existing tech-related retail operation
today. Fifty years ago, there were many
major retailers but none with the size
and clout of Amazon, Apple, Best Buy,
Home Depot and Lowes that now control national and international market
share. Yet independents, who sell major
tech brands like LG, Samsung, Sony and
others profitably, are in demand.

Nurturing the Next Generation

Many young retail entrepreneurs may
lack the day-to-day business savvy and

business contacts within the industry
to achieve their dreams. Enter today's
retail buying groups, to cultivate these
emerging retailers. A recent example is
an event held by the Associated
Volume Buyers (AVB), whose lineup
includes ProSource, the major consumer electronics buying group, and
BrandSource, its appliance, electronics
and home furnishings division. AVB
held a three-day meeting at Lake
Tahoe, CA, in June for retail members
from their 20s to 40s called the Young
Professionals University.
The University was created in 2016,
two years after a group of the same
name was formed. This was an educational event to go over nuts-and-bolts
business training in marketing,
rebranding and communications to
"build consumer loyalty and drive
profitability," the group said, as well as
a networking opportunity for this special group of dealers.
Among the presenters was Google's
Andrew Leonard, who discussed artificial intelligence and the Google
Hardware program and how these will
impact independents in the future.
The need for independent retailers is
still there, not only for suppliers who
want to sell their products profitably,
but also for consumers who want to
buy major home tech products with
confidence that they have the delivery
and service support they need. In the
case of AVB, it has 4,500 independent
dealers that generate an estimated $19
billion in annual sales.
Yes, independent retailers serve suburban and urban neighborhoods, as
well as small towns nationwide, but
that type of sales volume and subsequent profits should not go away anytime soon. With the help of existing
buying groups and suppliers, the
independent retailers will continue
to thrive.
Steve Smith was the former editor-inchief of TWICE.
I T I S I N N O VAT I O N

Dmytro Zinkevych/Shutterstock

T
REC
E TA
HI P
LO
ST
L IRCY
AT EG I E S

i3 - September/October 2018

Table of Contents for the Digital Edition of i3 - September/October 2018