Bringing Research to Retail

Apr 23rd, 2008

Economists define a recession as two consecutive quarters of negative growth of Gross Domestic Product. Before this officially occurs, it can sure feel like a recession. Like right now. Our economist friends won’t officially pronounce that the U.S. economy is in a recession for another couple of months. But putting lipstick on a pig does not alter the fact that it is a pig, or a recession. You might now inquire as to how we managed to find our way into this (or, as stated by two other noted economists in 1930 “this is another fine mess you have gotten me into,” MGM Films).

The next logical question is, of course, how deep and how long? At the Platt Retail Institute, we like going out on a limb, because economic forecasting is not our day job, and we can’t get fired if we are wrong. Hey, at least we take a position. In any case, our response is a very straight forward: not very deep and not very long. Here is why to both.

It's the Economy, Stupid

Jan 16th, 2008
By Steven Keith Platt

Another year ends; anew we begin. A time for parties, resolutions and, of course, predictions. So from an office in a small suburb of Chicago, Illinois, USA, I here advance my thoughts on the direction of North American digital communications industry for 2008.

Year after year, we hear that same old self-serving song: “next year is the tipping point” for adoption and deployment of digital communication networks. I am not myself sure that I know what a tipping point is, having never seen one. And, I note, with a degree of skepticism, that the majority of these choral members are industry vendors. Yet the question remains: what will happen in 2008 in the DCN industry?
For starters, we here at PRI are extremely busy. Going into 2008, we have a huge backlog of very cool global projects for some major enterprise players. Most of the knowledgeable industry folks that we talk to are similarly busy, be it proposing to prospects, deploying networks, raising capital, or buying companies. We note a similar robust level of activity in Europe, parts of the Middle East, and, of course, China...

Russian Revolution

Oct 18th, 2007
Recently I made a presentation at the POS Congress in Russia. My topic revolved around how a digital communications network can impact retail brand equity. During my visit, which included meetings with exhibitors at the trade show, as well as tours of various stores and malls, I discovered that while my new friends in Moscow may lag some other markets in terms of digital signage adoption, Russia is a robust market that any global player should strongly consider entering. Here’s why.  

At the end of 2006, the World Bank noted “a booming domestic market continues to drive strong economic growth in Russia.” Stores were packed and its citizens spend with abandon. Moscow itself is a modern, bustling city, in which one can sense, again as the World Bank notes, that the “real incomes of the population, wages, and retail trade have been growing in double digits.” This booming economy is fueling retail sales growth in excess of 12% annually...

Networking Capital

Jun 27th, 2007
The 4th Digital Signage Expo held this past May in Chicago was, by all accounts, a huge success. Attendance was up over 60% versus 2006, and 110 companies exhibited, for a 20% increase versus the prior year. Adoption of Digital Communication Networks (“DCN”) is growing both in the U.S. and internationally, and new markets, such as out-of-home, are becoming more active. Another interesting indicator of the overall health and direction of this industry is the amount of capital that is now finding its way into these businesses.

GO EAST!!!

Feb 21st, 2007
By all accounts, 2007 should be a very good year for the Digital Communications Network ("DCN") industry. Many retailers are advancing projects, we are seeing banks expanding their networks, and advertisers are beginning to take the industry seriously.  For many firms, this may be the year that marks the shift into a profitable growth trajectory.