Elgiganten Case

Retail Marketing Case

Purpose statement and structure

The purpose of our written product is to examine Danish consumer electronics retailer, Elgiganten, and how they use multichannel retailing. We would like to examine what the key benefits and challenges in providing multichannel offerings are for Elgiganten and how this affects the behavior of their consumers. We will structure our case by introducing the retailer we have chosen and why multichannel retailing is important and how Elgiganten uses this in relation to their business. We will relate this to consumer behavior and see if their multichannel offerings fit with their consumers’ behavior.

Case presentation and discussion of problems

Elgiganten is a danish-swedish retail chain selling electronic consumer goods. The chain was established in 1994 under the name Elgiganten in Denmark and Sweden. Elgiganten is a part of the Eljkøn Nordic which is owned by Dixon Retail, one of Europe’s’ largest electronic retail specialists.

In Denmark Elgiganten operates through 29 retail warehouses located in bigger cities and have an online internet shop Elgiganten.dk.

The accessibility of internet is widespread in Denmark, with 9 out 10 individuals between the age of 16-89 having access to internet at home, and only 1% of Danes with access to a computer but not internet. At the same time buying through the internet has been on the rise. In 2004 42% of the Danish population between the age of 16-89 had shopped via the internet, in 2012 it was 73%.

With a larg part of Danish consumers having access to the internet, consumer are not only buying goods and satisfying their needs through traditional brick-and-mortar stores but also through other channels like the internet. So why is multichannel retail interesting for companies to look at?

Because by using a combination of channels and if done correct, retailers can leverage the unique benefits provided by each channel to attract and satisfy more consumers.

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