One could easily dismiss this morning's Barrons's article by Eric Savitz as being filled with little more than hyperbole but I'm afraid this would be a drastic mistake.
Many of the statements made are simply painful truths but the outcome is yet to be written.
I believe, as I've stated previously, that Nokia STILL has the upper hand in the worldwide mobile device business due to their immense distribution platform. Granted, they've failed to build a legitimate presence in the U.S. market but elsewhere Nokia is still a giant. The key to Nokia's revival, and possibly their very survival, lies in their ability to leverage their in-store network in a manner never before seen.
Nokia needs to build an in-store shopper relationship network to meet their customers where they shop and convince them to remain customers by displaying live devices and their immense capabilities. They must use this network to build relationships with their customers which connect with them across shopping channels. If a shoppers sees something wonderful in a store allow that shopper to revisit their shopping experience when they get home. It requires 2-way communication rather than simply advertising.
It is relatively simple. Most buyers are not technical buyers. Most shoppers are "safety" buyers. They buy what is safe. They buy what their geeky friends or coworkers buy because they know mobile devices have grown so complex they'll never be able to understand it themselves. Nokia used to be the beneficiary of this shopping mode but the consumer market momentum has now shifted to the iPhone. Does this mean the game is over? Certainly not. Just as Apple didn't exist in the mobile device market a few years ago there is no reason Nokia cannot reclaim their momentum.
What is lacking? A robust shopper experience which clearly shows consumers the capabilities of "live" mobile devices (i.e. an Apple store) and educates them on why Nokia is the better choice.
Nokia has an opportunity. They must take a step no other major manufacturer is capable of even considering. Nokia must build a comprehensive Store-in-Store network Content Management System which displays live devices and shows comprehensive video tutorials of how their devices work. Nokia must learn to engage shoppers where they shop. People still visit stores to buy mobile devices. Why? Because they like to touch and feel and use their devices before making such a substantial investment. Apple and Google are trying to shift this buying culture to online sales and are doing so with some level of success. 5 years from now online mobile sales could become the norm. If Nokia doesn't act now their most important asset, their distribution network, could be irrelevant in 5-10 years.
Nokia will either embrace a solution such as that offered by Podo Technology and dramatically overhaul their existing In-store, TV, and Print campaigns or face continued decline. The landscape has changed. Nokia has the opportunity and the capability to reclaim their throne.
Nokia has not failed. Nokia will not fail. If they take bold steps. The time is now.
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