HMV’s core retail product markets
Although highly complementary, each of the core product markets in which HMV operates has its own dynamics and competitive structure.
We have made realistic medium-term assessments about these product markets and, even with structural trends taken into account, the combined value of the physical markets for music, visual and games in the UK is expected to be approximately £4.5bn in 2014. Our strategies to continue to compete effectively in these markets include: leveraging our leading specialist brand and multi-channel presence to protect margin; focusing on our core strengths in range, campaign and promotions; maximising the synergies that have been built with HMV Live; and, through our strong links with suppliers, creating attractive and value-added offers for our customers.
The market for portable digital technology is growing, particularly tablets, with global shipments poised to increase to over 100m units in 2014