The news always seems negative for the once-popular and lucrative electronics retailer RadioShack. Its stock price was reportedly down 39 percent, it lost money over the years, and shareholders left the company, one after the other, faster than you could say BlackBerry Z10.
While RadioShack isn’t exactly on the fast track to profitability and sustainability, company brass has announced a plan to join forces with the booming business of Beats by Dr. Dre
From MSN:
The question isn’t whether the new line is attractive to young consumers, however. The real issue facing RadioShack is whether teens and 20-somethings will even think to make their way to the fading retailer to pick up one of the sleek headsets.
After all, RadioShack is better known for helping aging electronics aficionados than for assisting young music fans. And there’s no lack of rivals selling Beats products. The brand is also available from its own website, as well as from RadioShack rivals such as Amazon.com (AMZN -2.20%) and Best Buy (BBY -0.35%).
RadioShack is certain the deal will help with its “brand transformation,” the company’s chief marketing officer told Marketing Daily. The effort is part of chief executive officer Joseph Magnacca’s plan for reviving its image. Magnacca, who is credited with breathing life into Duane Reade drugstores, last month vowed to refresh some New York City locations, Reuters notes.
RadioShack’s Jennifer Warren told Marketing Daily the company needed to skew younger to stay afloat.
“We need to broaden our appeal to be inclusive of Millennials who currently don’t know that they can find the hottest music accessories that they want in their neighborhood.”
Beats by Dr. Dre recently signed singer Robin Thicke to an endorsement deal, promoting its new “pill” portable bluetooth speaker.