Courtney Davies' Blog

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While browsing through peer blogs, I stumbled across Indigo’s New Store Sells No Books, a blog post by Kelly Trach. Kelly discusses Indigo‘s new strategy in which they will sell home decor and furnishings. Indigo’s new product is in response to the decrease in consumer demand. Indigo has been losing sales due to the shift to e-books and tablets. Book sales will drop from 75% to 50% over a couple of years. With the new product expansion, Indigo will develop into a new market. Will this tactic be beneficial for the company? I feel that Indigo’s expansion to home decor and furnishing will improve the business and broaden the product range. Although there are little barriers to entry, there is intense competition in the home furnishing industry. Indigo must compete with IKEA,  Home Furniture, Leons, and Sears who already have a strong brand recognition in the market. I agree with Kelly when she states that “for Indigo, this tactic is far easier than attempting to compete in the e-book and tablet industry”.

Works Cited:

Strauss, Marina. “For Indigo CEO, It’s Time to Think outside the Book.” Home – The Globe and Mail. 9 Nov. 2011. Web. 17 Nov. 2011. <http://www.theglobeandmail.com/globe-investor/for-indigo-ceo-its-time-to-think-outside-the-book/article2231354/>.

Trach, Kelly. “Indigo’s New Store Sells No Books.” Web log post. Kelly Trach’s Blog. UBC Blogs, 17 Nov. 2011. Web. 17 Nov. 2011. <https://blogs.ubc.ca/kellytrach/2011/11/17/indigos-new-store-sells-no-books/>.