Most retailers find themselves struggling to meet their business goals and objectives in today’s business world. However, Australia’s largest home entertainment retailer JB HiFi is an exception. Despite the current harsh business environment of COVID-19 and other retail disruptions, the company has posted impressive results, making its peers envious (Boyd, 2020). JB HiFi has effective business strategies, which gives it a competitive advantage in its current operation.
Every company needs to attract customers, and JB HiFi has vibrant and dynamic marketing strategies. JB HiFi gives coupons that enable its customers to save on money. Besides online marketing, it still uses traditional marketing methods like billboards, flyers, and promotions, which attract all age groups (Boyd, 2020). The use of coupons, online marketing, and traditional advertising methods has ensured that JB HiFi remains competitive.
In 2018, JB HiFi announced having intentions to implement its online marketing strategy to compete with Australian Amazon and eBay. This move has proven to be timely, advantageous, and beneficial to JB HiFi, especially with the Covid-19 pandemic. Australians experiencing lockdown measures had to buy goods and services online, making sales for JB HiFi increase. On August 10, 2020, JB HiFi reported its full-year results, which were boosted by the pandemic. In 2019, sales records were $7.1 billion, while in 2020, sales records were $7.9 billion, translating to an 11.6 percent rise in sales. Statutory net profit also rose 21 percent to $302.3 million (Boyd, 2020). During March and April 2020, thousands of Australians bought new laptops, monitors, and keyboards to enable them to work from home. Having an online presence has contributed to the yearly profits of JB HiFi.
JB HiFi has maintained its physical outlets in addition to its online store. According to Boyd (2020), shops have given JB HiFi a competitive advantage compared to some of its competitors who only have an online presence. Walk-ins translate to most JB HiFi sales, and customers have a variety of items to choose from. Their shops also provide repairs, which encourages customers to buy from them. Maintaining physical stores, therefore, has been the cornerstone of JB Hi-Fi’s market resilience.
The retail giant also invests heavily in training its staff members to eliminate high staff turnover. This business strategy ensures that their employees are knowledgeable and offer excellent service to their buyers. JB HiFi stores are popular because their shoppers can physically see the items, test them, and even discuss them with an expert before buying them. The retail company has also ventured into home deliveries (Boyd, 2020). Investing in their staff and doing home deliveries has been a critical strategy in having satisfied customers.
JB HiFi purchased Good Guy in 2017 and has managed to incorporate it into its business seamlessly. This strategic investment has seen the share value of the giant retail company increase on the Australian Stock Exchange (ASX). JB Hifi has maintained low operational costs as a sound business strategy. The company partners with large suppliers such as Apple and Samsung, ensuring that its prices remain competitive within the market. According to Boyd (2020), the retailer’s cost of doing business is 15 percent, which is one of the lowest in the world. JB HiFi is continuously reassessing its stores’ performance and closing those that are not performing well while still expanding by opening branches in other areas. By strategically opening and closing stores and maintaining low operational costs, JB HiFi remains profitable and competitive.
With its diverse marketing strategies, JB HiFi will continue to attract more customers and post impressive profit results. The retailer’s online store strategy has also boosted the financial gains for the year 2020. JB HiFi’s strategy of using their shops to give customer service and repairs should not cease. Besides, staff training, maintaining low costs of operations, and partnering with large suppliers will ensure that JB HiFi remains profitable. JB Hifi should not change its current strategies because they are beneficial and competitive.
Boyd, T. (2020). How JB Hi-Fi went from good to great. Australian Financial Review.