April 25, 2008Opinion - Setting up a few digital kiosks and offering a few new services isn't going to save Borders.Borders Inc., the troubled bookstore chain based in Ann Arbor, is introducing 15 so-called "concept stores" this year - an effort to integrate technology into the store and generate interest as revenue evaporates. Nathan Bomey: Borders' new 'concept' - not really innovation Borders Inc., the troubled bookstore chain based in Ann Arbor, is introducing 15 so-called "concept stores" this year - an effort to integrate technology into the store and generate interest as revenue evaporates. But with news last month that the company has slumped so far that it would consider a sale - perhaps to rival Barnes & Noble - Borders needs more than concepts. It needs profits. The company's marquee concept store, located on Lohr Road at the former location of CompUSA, opened a few months ago. I recently strolled through the store for the first visit - on my own time - and I was sorely disappointed. Borders needs to do more to save itself. The concept store is lacking innovation. It's not enough to set up a few computers throughout the store, tell people they can download music onto their MP3 players and call it innovation. The concept store is interesting for a few minutes, but it doesn't take long to realize it's just another Borders with a touch of pizzazz that doesn't really impress. Anne Roman, a Borders spokeswoman, told me that customers have responded positively to the concept stores - although sales figures at the concept stores are not available. "It's been overwhelmingly greeted with success by our customers," Roman said. "We have heard nothing but compliments from our customers about the concept store." The concept stores feature kiosks where customers can download music directly to their digital music players. They can create customized music lists and leave the store with a burned CD. "Our overall mission is not about being a book seller. Our mission is to be a headquarters for information and entertainment," Roman said. Patrons can also upload a book manuscript and request printed copies from Lulu.com. (This is presented as a new thing. But you don't need to spend your money here if you want to publish your own book. Saline-based printing company DiggyPOD accepts online orders for print runs less than 1,000.) Customers can create personalized photo books and research their genealogy at the concept stores. They can also use the aesthetically pleasing kiosk centers to get computer-generated suggestions for fun trips. These are intriguing ideas. But there are two major flaws that may not come across on paper: • I played around with the kiosks for about half an hour and I was shocked at how slow they are. I expected the speed of the computers to be ultra fast. Instead, it was more like dial-up. Disappointing and certainly not innovation. To make matters worse, the computers were hard to navigate. I guarantee you can get things done faster at home. Or even at the library. • The store doesn't offer much that you couldn't do using an aging PC with Windows 98. I mean that. On paper, the concept store sounds great. In reality, it ignores Borders' real problem: It hasn't been able to compete with Wal-Mart, Target and Amazon.com on pricing. That probably isn't going to change, and Borders recognizes that. The bookstore chain is already a place where people want to hang out. It's cool to spend time at Borders. Unfortunately the store needs to be more than a place where you want to hang out. It needs to be somewhere you'd want to buy something too. Preferably a book. I came up with two different, yet simple, concepts Borders should pursue: • Package books with CDs and DVDs more often. Market it. Make sure people know they can buy a book about the University of Michigan football team and a highlights video in the same place. Work with publishers, music labels and studios to get this done. Otherwise, there's virtually no reason to buy a CD or DVD at Borders, where it feels like these items are twice as expensive as online. • Put a greater emphasis on in-store book signings by authors - particularly local writers. Instead of offering book signings and meet-and-greet sessions a few times a year, do it a few times a week. Hire someone at every store who is responsible for making these happen. Market these appearances through local blogs, social networking sites and other free media. When I think about what Borders needs to do to be successful, I don't think about downloading music onto my MP3 player - which I wouldn't be able to do anyway because their technology doesn't work with the iPod. Instead, I think about people like Ann Arbor's Chris Lin, publisher and author of the Mandy and Pandy series, who has done occasional signings at local bookstores, including Borders. His innovative books teach young children Chinese in a pleasing, readable format. People like that will drive traffic to Borders. And more importantly, they will drive sales increases, because consumers will respond with their wallets when they see the excitement regularly generated by authors themselves. Setting up a few digital kiosks and offering a few new services isn't going to save Borders. Bart Huthwaite - a corporate consultant, author and founder of the Institute for Lean Innovation - told me in November that it's important not to think that new technology is always the answer. I don't know if Borders understands that. Just because something is digital doesn't make it innovative. "There are many new ideas and inventions," Huthwaite said, "but those are not innovations. They are simply inventions." Contact Nathan Bomey at (734) 302-1725 or [email protected]. |