Dixons vs. John Lewis
John Lewis is having a tough time of it of late, as its recent 20pc slump in first-half pre-tax profits revealed. And not only does it expect things to be equally as “fragile” for the year ahead, but it has also taken issue with Dixons.co.uk’s recent adverts that appears to mock John Lewis’ middle class values.
For those that haven’t seen it, the adverts are very clever, and funny. They have created buzz and talkability about Dixons.co.uk. The new adverts encourage shoppers to go and search for the items they want in ‘middle class’ department stores and “then go to Dixons.co.uk and buy it”. They’ve clearly been designed to reflect the growing trend of consumers testing out possible purchases in-store before searching for the best bargains online to save money. Dixons.co.uk has obviously looked at the ways consumers are trying to save money in the recession and latched on to this concept for its latest advertising push.
John Lewis plans to tread carefully over the next year, and has even launched a new low cost “essential basics” range which it hopes will tap into consumers who still want to buy quality products in the recession but at lower prices. The question is however, can we expect a bumper profits announcement from DSG international (who own Dixons.co.uk) next time round following their new advertising push? If more people are heading online to make cheaper purchases, and its advertising campaign is a success then surely the answer is a yes. Watch this space…
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