Years ago, the CD-R King was so popular it had over 500 branches all over the Philippines. During the 2000s, it was the go-to store to purchase CDs, electronic devices, gears, gadgets, and almost anything tech-related. Unfortunately, its popularity faced the end as it closed down most of its physical stores.
What happened to the once-beloved CD-R King? The story of the popular retail store presents many business lessons on how to keep up with the ever-changing demands of the customers and markets.
According to Daryle Ganchua, then-regional manager CD-R King on ANC, their brand wanted to promote affordable tech devices to the Filipino masses.
Their business strategy worked… but only for awhile. Soon, they had to face several challenges that led to the business’ downfall.
Customer Service And Product Complaints
Many customers from CD-R King had their fair share of complaints from their personnel, staff, and system. A Reddit thread on the CD-R King’s downfall shared that many customers were discouraged due to poor customer service and waiting time.
“Paying for my items takes too long. I have to queue for another 30 minutes just to pay, so I end up abandoning my items a few times,” a netizen commented. Another wrote, “Poor customer service, poor quality of products.”
Good customer service is one of the keys to growing your business quickly. Keeping your customer happy and satisfied will keep them coming back to your business. There are many ways to keep your customers happy, one of them is to make sure your services don’t disappoint their expectations.
Where is CD-R King?
As they say, “e-commerce is king.” In a report on Esquire, they noted how the rise of e-commerce heavily affected many retail stores like CD-R King beginning in 2010.
After many years, CD-R King is now keeping up with e-commerce as it maintains an official store on e-commerce platforms like Lazada and Shopee. It still has very few branches open but is quite far from its glory days.
It also didn’t help that in 2021, the Bureau of Internal Revenue (BIR) Revenue Region No. 6 of Manila filed a ₱26.47-million tax evasion complaint against CD-R King founder Nicholson Co Santos and Haleiwa International Corporation, according to Abogado.
Keeping With E-Commerce
Chris Cashin, Forbes Councils Member, noted important business lessons in shifting your business to e-commerce:
1. Product quality matters
The price must be able to meet the customer’s expectations in terms of quality.
2. Make use of modern tools
Research and use modern tools to help your business move fast. Use technology, social media, and other online apps to streamline your inventory and logistics.
3. Choose the right products
Don’t just sell products while they’re in demand. Create a viable product that caters to a specific long-term demand. Don’t just focus on trends and hypes.