|
|
|
|
Introducing EzyDVD Rent or BuyA fresh new approach for your rental business!The Australian Video Rental industry is consolidating fast, putting new pressures on existing video store operators in an already challenging environment. Consumer has many choices when deciding on their entertainment selection, with new delivery channels encroaching on the rental industry. This is diminishing the business available to a traditional local video store, indications are that their heyday may be over, unless we reinvent the business.
The Video Rental industry recognises that there are several potential threats to its existence:
The impact of these trends will be felt no less by the existing major rental brands as they will be by independent operators. Three years ago there were approximately 3,000 Video stores in Australia. Today there are some 2,200 stores, and approximately half of these operate under the three major brands, Video Ezy, Blockbuster Video & Civic Video. In the same period of rental store decline, the Australian consumer has shown a taste for purchasing New Release, box sets, TV on DVD from retailers such as JB Hi-Fi, Big W, Kmart and EzyDVD. Rental store operators have been missing out on the opportunity to attract a market of consumers who are keen to own their own entertainment. The time has come to combine our established proven DVD retail capability, with the traditional Video Rental offer, in a fresh new way that will appeal to today’s sophisticated entertainment consumer. What is EzyDVD Rent or Buy?The Ezydvd Rent or Buy store is fresh and innovative, demonstrating to the consumer something new in rental, that EzyDVD will satisfy their needs in entertainment. With DVD’s, Blu Ray, HD DVD and all types of games. 
Never before in Australia has a rental and retail store been combined in such a way. The Ezydvd Rent or Buy store is designed to celebrate this fact. Vibrant colours feature strongly throughout the store promoting a fun and exciting environment. 
Simple graphical elements accentuate the strong colours and allow the focus to be on the promotional products. Promotion display becomes simplified so as to draw peoples eyes to them rather than overloading the eye with multiple and inconsistent images. 
EzyDVD Rent or Buy format, will have a dedicated retail area, a ‘store within a store’, utilising the same distinctive features, flooring, signage, and POS just like an existing Retail EzyDVD Store The brand relationship with the customer must be easily understood. Simplicity is the key. Customers must understand the value a business represents in a quick and simple manner. EzyDVD Rent or Buy achieves these using two principles.
Neither of these elements compete. In fact it sends a clear message to consumers. They actually understand what we are about “satisfy their needs in entertainment”. 
Services & Products to Support the BusinessEzyDVD retailers have access to an amazing array of POS and merchandise. Creating excitement and life, these elements are changing on a regular basis. Consumers enjoy the experience of visiting and shopping in an EzyDVD store. 
These high standards, which have brought EzyDVD success in retail stores, have now been translated into the rental store model. The level of support will be strenuously maintained to ensure the continued success of the EzyDVD brand. 
Technology and EzyDVD?The provision of reliable super-speed broadband in Australia continues to prevent the movie download industry from taking off, but within due course, we believe this channel eventually will have an impact on traditional retail. However, there is no reason that the Video Rental industry cannot have a bigger influence and involvement when this technology is widely available. EzyDVD as a brand is positioned well in the Australian consumers mind as a credible brand that is in-touch with the latest technology. EzyDVD has some significant plans to launch a technology offering to consumers that will be unique in the Australian landscape. EzyDVD is well placed with new technology such as Blu-ray and HD-DVD, and considers that technology changes such as these will become par for the course over the next few years. EzyDVD Express ProgramConsumers have become accustomed to EzyDVD’s vast range of titles available on its website and the brand has become synonymous with being the specialist DVD Retailer in Australia. In any retail environment, it is a challenge to be able to deliver on these customers expectations of depth of product range across 20,000 individual titles, yet still retain an efficient inventory level. EzyDVD is in a unique position in Australia where it has the largest warehouse facility of DVD’s in Australia, which services ezydvd.com.au. It can provide access to back catalogue titles to satisfy customer orders for stores.  EzyDVD Warehouse Facility provides access to range of product via the EzyDVD Express program Customers will quickly recognise that rental stores have fast access to range, and will enjoy being able to purchase from rental stores with the knowledge that the product will take no more than 2 days to be available in the rental store for collection. Price Protection and RebatesThe majority of suppliers provide support with price protection as stock is promoted at lower prices. As a product is promoted by a supplier, the cost price and retail price normally drop. In the event a store has some existing units of stock on hand that are about to be promoted – the supplier will generally pay a ‘stock-on-hand rebate’ or a ‘scan rebate on sales’ equal to the difference of what the stock was purchased for, and the new cost price. This practice ensures that stores will not be out of pocket as product is promoted. EzyDVD manages the rebate claims on behalf of stores by collecting rebates on behalf of all stores and passing them onto their EzyDVD trading account with a credit. SOR (Sale or Return) InventoryWe are pleased to advise that EzyDVD has a Sale or Return Policy with all majors suppliers. If product is not sold, it can generally be returned back to supplier for a credit (*conditions apply). This minimizes inventory obsolescence for rental stores, and enables orders to be placed in confidence. There are times when EzyDVD will negotiate a special deal on a product, or range of products. In some of these instances, inventory may be offered as a ‘firm sale’ and will not be returnable to supplier. EzyDVD.com.au – complimenting Your Retail OfferEzyDVD’s brand is extremely well recognised and accepted by Australian consumers, its website attracts well over 30,000 visitors per day and dominates the online DVD retail landscape in reality the Website is our stores 24/7 advertisement. The website actually directs customers to our retail stores EVERYDAY! Independent web traffic monitor Hitwise.com.au consistently ranks EzyDVD.com.au as the No 1 website in the 'Shopping and Classifieds - Video and Games' category. EzyDVD commands an impressive 21% of total hits in this broad online segment. 
In addition to being a recognised authority on DVD in Australia, the EzyDVD website also provides a significant advantage to the Retail stores in its brand. Consumers are encouraged to pre-order new release DVD’s in advance of the release date – this pre-order intelligence is shared with stores via ordering recommendations which provide an accurate guide to the retail sales potential across all new releases – a potent tool for retail stores when committing to inventory for upcoming new release product.
From its beginnings in 1999 as an online pioneer, EzyDVD has forged its way as a market leader in supplying home entertainment. While EzyDVD expanded to meet growing online demand, it became increasingly evident that not all consumers were comfortable transmitting personal information over the internet to make online purchases. Inundated by requests from DVD-hungry customers for a way to purchase titles from a traditional retail outlet, EzyDVD took a bold step into the future. In 2001, bucking an existing trend to convert bricks-and-mortar retail to the online world, EzyDVD opened its first retail store in the elegant, high-traffic Regent Arcade in Adelaide. Within 12 months, revenue reached $1.8 million from a 65 m2 store. This was followed in October 2002 by the first EzyDVD franchise, at Westfield Shopping town in Pagewood, NSW. The EzyDVD group has grown very quickly and now encompasses 70 stores in every state, most of them in high profile shopping centres such as Westfield, Gandel and AMP. After four Head Office moves into larger facilities, EzyDVD headquarters is now housed in a purpose built 3200 m2 office and warehouse facility in South Australia. With combined online and store revenues in excess of $90 million annually, EzyDVD is the undisputed authority on DVD entertainment in Australia. Based on this phenomenal growth, EzyDVD was previously named the national winner of Deloitte’s Tech Fast 50 companies by revenue. In the last 12 months, EzyDVD has launched approximately 100 exclusive releases that have captured the interest of DVD collectors. These include exclusive DVD Collector’s Tins, which have a unique appeal and high repeat customer base, as well as Commemorative Packs and Collectors Bags. In 2006, EzyDVD sold a record *3,733,811, (that’s almost 4 million DVDs), ranging across 20,766 titles. EzyDVD – a Creator of ChangeEzyDVD has a well deserved reputation as a creator of change within the industry. The company has led the way with innovations in packaging and Gifts with Purchase 
EzyDVD is focused on creating a differentiated consumer offer in its Retail Stores. One of the ways this has been achieved is by catering for the large base of collectors and enthusiasts, via creation of exclusively packaged movies, and unique GWP. Over one hundred (100) individual product initiatives have been released in the last 12 months. In a market that is selling a commodity product, which is being targeted by mass merchants (ie: Big W, Kmart) – EzyDVD has recognised that consumers are searching for a unique experience, and will reward a retailer with their repeated custom if they can satisfy their needs. EzyDVD is recognized as the specialist in GWP - to encourage customer loyalty and pre-orders. EzyDVD will continue to develop new GWPs over the course of the next year, and these innovative products will all be available through the rental channel. EzyDVD believes that offering these exclusive products in rental stores, will gain the respect of consumers as a destination for retail purchases of DVD product, re-positioning rental stores as a credible environment for their entertainment needs. Be part of the excitement & growth. Next stepsBefore any further action is taken, EzyDVD insists that a review of any existing obligations or contracts on the business is determined. This includes contracts that may have run their course and still have restrictions on the type of business the business may enter into. EzyDVD Pty Ltd recommends that a solicitor and accountant is consulted in these matters. If there is no caveat or encumbrance on the business, an application can be lodged. Contact us for more information.
In this environment, EzyDVD aims not just to survive, but to thrive. I look back fondly on my own first video library, which I opened in Adelaide in 1982. By the late 1990s, I had converted my stores from Video Star to Video Ezy. Then DVD technology came along and, with this exciting new medium, a huge opportunity. In 1999, I made the decision to sell my Video Ezy stores and ride the wave of the dotcom era by launching the ezydvd.com.au brand. I had succeeded as Australia’s sole DVD-only retailer through innovation and through total focus on customer satisfaction. Today, EzyDVD is one of the best recognised DVD retail brands in the country, and is well on the way to hitting record sales in 2007. I now invite you to continue the journey with us. My team has been working around the clock to deliver an extension to the EzyDVD brand – an ‘E-volutionary’ format that will allow you, the video store owner, to share in our success. This information will give you an introduction to our new brand, which incorporates the successful elements of our established brand, and offers your customers the best possible experience when buying and/or renting. For more information you are welcome to register your interest and we would be happy to contact you.
Warm regards 
Contact details: ● Phone 08 8301 8900 ● Fax 08 8301 8999 ● PO Box 701, Marleston SA 5033 |
