Sep 12, 2022

Remember when HMV was huge?

It was THE shopping destination on a Saturday.

Which of the latest singles were you going to buy on CD? Or maybe you’d earned enough pocket money to splash out on a whole album!

Whatever your music taste, HMV was the place to go in the 80s and 90s.

In 1986, HMV opened the world’s largest record store in London’s Oxford Street.

 
Tens of thousands of people turned up to watch Bob Geldolf and Michael Hutchence perform. The event closed Oxford Street!

And when Michael Jackson was in town, they closed the store specially for him so that he could privately wander round the ghostly empty aisles of the store without his hoards of fans bothering him.

Their competition at the time was Richard Branson’s Virgin Megastores. Back when Branson spent a lot of time, and money, snatching up the prime city retail real estate before HMV could get their hands on it.

The world of music and film was HMV's for the taking.

But then. The world changed.

Technology took a massive leap forward when this amazing new thing called, the Internet, burst onto the scene like a sparkly 80s nightclub act flashing their jazz hands wildly at an excited audience. This was the perfect opportunity for HMV to step up and lead the way into the world of downloads and streaming.

But no. While all the sparkly jazz hands were going on, HMV was at the bar, ordering champagne, with its back turned. They missed the whole show.

Despite where the market was clearly heading, and despite being the market leader by a long shot, HMV dropped the ball. With a massive clang.

Yes, they set up an online store in response, but only to sell hard copies of CDs and DVDs which would take several days to be delivered to customers who were already developing a taste for the satisfying immediacy of online downloads.

Despite being advised to provide the option of downloads for their customers, HMV still chose to stick to their guns and stand by the fact that they believed that their customers would remain faithful to the instore experience and the tangibility of a hard copy CD or DVD. Online shopping was not going to be the next big thing.

Whatever the reason for HMV’s decision to not join the rest of the competition on the online party bus, it was to be the brand's downfall. As online downloads soured, HMV’s profits plummeted.

As a loyal customer of HMV in the 90s, it was truly sad to watch.

But it was also extremely frustrating. I couldn’t understand why they weren’t moving with the times and giving their customers what they so clearly wanted.

Had they stopped listening to their customers?

Sometimes in business, it can pay off to turn right when your competitors are all turning left, but it’s a risky strategy. You’ve got to be sure that it’s the right move for your business and, more importantly, that your customers are going to follow.

Being closer to their customers and listening to what they wanted would have protected HMV from such a tragic fall from grace.

The brand has ended up being the perfect case study for how badly, and quickly, things can go wrong when you don’t keep close to your customer need.

The customer need will always change and evolve. It’s natural. And sometimes, if you’re clever and innovative, your brand can be the driver of that change.

iPad anyone?

Calm Blue is passionate about the customer experience and works with its clients to bring them closer to their customers and apply those insights to define and drive strategic growth. Fancy a chat about your customers? We'll put the kettle on.