From Good Ereader:
The Barnes and Noble Nook division is one of the most longstanding and successful brands in the e-reader and tablet sector. The bookseller jumped into the eBook revolution in 2009 with an online store and their own flagship device. Their first few devices sold like wildfire, but sales have tapered off with each subsequent release. Nook Media has been losing money each quarter for over a year and most of their executives in charge of books, hardware and accessories have all left the company. What if they hired me to run the show? Here is my game plan to turn Nook around.
. . . .
The average Barnes and Noble bookstore is around 26,000 square-feet in size. The Nook retail area, where devices are showcased are normally 1,000 sq ft, and larger stores have 2,000 sq ft.
This is a solid amount of space to showcase the Nook Glowlight, Nook HD and Nook HD+, which is the current generation lineup. Not to mention accessories, such as cases, and screen protectors.
The Nook display section has no consistency in overall design and customer experience. The flagship Union Square location looks way better than the store in Las Vegas. Once you start going to more rural bookstores, in smaller markets the Nook display section lacks. I have walked into bookstores and saw nothing more than a wooden table, with a blue sheet and stuff piled all over it.
If I was in charge of Nook Retail I would create a blueprint and template that all stores would have to abide by. I would mandate that all Nook areas would be close to the front entrance and by the window. It would feature a clean white overall design, with vibrant color coded areas where you would find devices, accessories and a Nook Kiosk. Having street traffic seeing a cool, hi-tech area would prompt them to come in the store. It is important to build a consistent experience, walking into a big store in New York, would be the same as walking into one in Seattle.
. . . .
The average Barnes and Noble bookstore does not have an army of employes. I have witnessed that many in the store wear different hats, whether its inventory, cash, restocking or helping customers. The people in the Nook area, often are not dedicated and feature a revolving cadre of characters. I would mandate that every store location needs 3 trained people for the Nook area, two of which are full time and another that works when one the core people are sick, or on vacation. There would be regional trainers who would be responsible for each State, and would bring people into that State’s flagship store for a week of training. They need to be Nook Certified.
. . . .
Barnes and Noble has a line of accessories for their line of tablets and e-readers, none of which are really compelling. Sure you have the ubiquitous cases, screen protectors, charging cables and even a pair of Nook headphones. They need to solve this situation to make the Barnes and Noble accessories line, more modern and current.
. . . .
If there was one oportonity that Barnes and Noble is missing, more than anything else, is the synergy between Nook Press and their bookstores. Nook Press is the companies self-publishing program and is a direct follow-up to PUBIT! The platform itself pales in comparison to competitors programs like Amazon and Kobo. Heck, UK authors cannot even use Nook Press to publish in the US and UK.
If i was in charge of Nook Press and displaced Teresa Horner the first thing I would do is partner up with a service like Ingram Lightning Source. US authors would be able to self-publish books digitally and make them available for the retail stores to purchase. Ingram basically runs a giant print on demand system, where authors can have copies of their books printed, if someone places an order. This method proves to be quite popular with competitors.
. . . .
I have been following the entire eBook and e-reader industry since one year after the original Kindle came out. I have seen many major booksellers go bankrupt, some taking chances, some taking none at all. The most squandered opportunity that Barnes and Noble has missed in the last five years is getting self-published titles in their store, from their own authors. Barnes and Noble sorely needs a self-publishing super-star to carry the torch and be a walking banner for their services. They cant do that without Nook Press POD.
Link to the rest at Good Ereader
PG says one of the consequences of a monopoly or near-monopoly position in an industry is that the monopolist becomes fat and slow. Defending its traditional turf against interlopers always seems to be Job One.
Barnes & Noble is an excellent example. It should have been in an ideal position to take advantage of the ebook/ereader technology surge, but it blew that chance.
Another takeaway from the Barnes & Noble Nook story for PG is what it says about the value of retail spaces vs. ecommerce spaces.
At least in the Barnes & Noble stores PG visited during the early days of Nook, the Nook kiosks had prime spots – the first thing you saw when you walked in the front door – and were staffed by at least one person. This was retail space that was formerly occupied by tables covered with books or big stacks of books – displays for which big publishers pay a lot of money.
One would think that space would provide a powerful advantage for Barnes & Noble to grab a huge share of people who regularly purchased books as Nook customers, but it didn’t work. Space on Amazon’s front page devoted to promoting Kindles worked much better.
We’ll never know how Nook would have fared if Barnes & Noble had pursued a more intelligent strategy and executed better on components like The Nook Book Store and international distribution, but the bookstore’s prime real estate didn’t seem to provide a meaningful competitive advantage. If Kindle vs. Nook is not already a business school case study, PG suggests it will become one in the future.