Sponsored feature

Should HMV be rescued and can a model be found to ensure its survival? The Marketing Society Forum:

Restructuring specialist Hilco took effective control of the music, DVD and games retailer last week.


While there is no doubt the music and entertainment sector has been dominated by the supermarkets and online operators such as iTunes and Amazon, there is still room for a quality high-street operator. HMV is a fantastic brand and has the support of music labels and film distributors which want to see a specialist retailer survive.

It is likely the portfolio will be rationalised with a focus on fewer, bigger, well-located stores. This provides an opportunity to adapt its proposition to make these social places to visit and showcase the excitement and fun of the products to stimulate impulse purchases.

People want to share and experience great videos and music together: HMV can make its stores the place they want to go to buy.


No brand has a divine right to remain relevant any more than I have to buy Spangles at the newsagent. Relevance is earned - it's staying true to your roots but listening and being brave at the right time to make sure you still have a place in consumers' lives. HMV had become 70s Elvis, lurching across the stage, the audience wanting to remember a beautiful past yet perpetuating the painful present.

The same sentimental commentators who wept crocodile tears over the absence of pick'n'mix on the high street when Woolworths folded will lament HMV's demise - and then go straight to iTunes to download Now That's What I Call Music.

YES - TIM CURTIS, MULTICHANNEL RETAIL EXPERT (and former managing director, Lands End Europe)

There's enough brand equity left to make a rescue worthwhile, and with more than £1bn of sales, a third of the UK's physical music market and 170m store visits last year, there's a lot of business to rescue. The store portfolio and cost base must shrink, and margins will need further supplier support if HMV is to be competitive. The challenge is funding the recovery, in particular digital investment and store refits, while keeping enough customers and revenue.

To secure a long-term future, it must rediscover what makes it a destination and deliver it meaningfully and seamlessly through all channels.


HMV still has a proposition that can be relevant, and still holds a place within consumers' hearts.

If it is to make the most of its second chance, it must begin to develop its marketing strategy based on a deep understanding of consumer behaviour and the points where the brand can connect with the consumer in a relevant way. Then, a revitalised business strategy can help it deliver an engaging brand experience with impact, to rebuild enduring relationships with shoppers.

Follow the debate online Can HMV come back from administration and build a long-term future?


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage