SA pre-order exclusives harm retail competition?

The topic of pre-order exclusivity in South Africa is a popular one, and a number of the country’s retailers and gaming distributors have weighed in on why pre-order exclusives exist, and if they’re hurting the industry.

Takealot declined to comment; BT Games did not respond at time of publication.

Local retailers were asked how pre-order exclusives may affect the industry, with SA outlets giving some insight into the impact of the practice.

“This practice does not add any significant growth to the industry as the customer would ultimately have bought the game in some form or another, so the size of the pie on a title remains the same, just the share of retailer varies based on who offers what pre-order deal, exclusive or DLC,” said CNA.

Online retailer Kalahari said that the exclusive pre-order deals do have a strong impact on the industry as a whole in South Africa.

“Exclusive versions allocated to specific retailers do harm the potential growth of the industry. Day 1 exclusive incentives don’t, as the customer is still getting the full product with something extra on top. It also allows each retailer to have a differentiator in the market, and gives the customer choice,” said Kalahari

The retailers were asked what lengths they would go to in order to secure exclusive versions of games.

“We have recently started discussions with key publishers with a view on securing exclusives on selected titles in line with our pre-order strategy,” said CNA, “But still our biggest exclusivity and asset remains our store credit card for use on-line and in-store, and ‘Thank U’ loyalty program.”

Kalahari added to its original point on Day 1 incentives, saying that exclusive versions would minimise the choice of the consumer.

“We don’t try and obtain exclusive versions of games, as we only look at obtaining exclusive day 1 incentives (DLC, Physical items, etc). We always want to ensure that we can offer our customers the best day 1 offering. We would never try and obtain exclusive versions of a game, as this will create unfair competition in our territory,” said Kalahari.

Battlefield 4 Deluxe Exclusive to BT Games

When asked regarding the notion that a retailer would have an “advantage” with a pre-order exclusive, the retailers gave their opinions on how it may create an imbalance in the market.

“This is always a constant problem, as more and more retailers are beginning to stock games. That said, competition isn’t always a bad thing, as it grows the industry,” explained Kalahari.

“The problem comes in when a competitor is given a distinct advantage, by either the publisher or supplier, and gets allocated a high demand exclusive version of a title. Customers should always have the power to choose which retailer they would like to buy their games from, and this practise (by the publisher or supplier) forces their hand.”

CNA also acknowledged the element of competitiveness between local retailers, saying that it has to keep delivering good deals in order to keep customers loyal.

“As with any industry, competitiveness is the name of the game as we fight for share of the customers wallet. Therefore we endeavour to always keep our customers in mind by securing the best and/or most relevant offers/deals combined with the added value of our store credit and loyalty program,” said CNA.