Consumer Electronics & Appliances Stores
- ID: 1052411
- March 2016
- Region: United States
- 10 pages
- First Research
Brief Excerpt from Industry Overview Chapter:
Companies in this industry sell household appliances, cameras, computers, and other electronic goods. Major companies include Best Buy, Conns, GameStop, hhgregg, and the retail operations of Apple (all based in the US); as well as Dixons (UK), Gome (China), and Yamada Denki (Japan).
Global sales of consumer technology products are about $1 trillion, according to the Consumer Electronics Association. China is the worlds largest market for consumer electronics. India, Brazil, and other emerging economies with growing middle classes have strong potential for retail growth.
The US consumer electronics and appliance store industry includes about 50,000 stores with combined annual revenue of about $100 billion.
Demand is driven by consumer spending as well as technological innovation, which entices consumers to replace or upgrade older products. Profitability for individual companies depends on the ability to generate store traffic and repeat business, as well as effective merchandising. Large companies enjoy economies of scale in purchasing and marketing. Small companies can compete effectively by offering specialized products or superior customer service. The US industry is concentrated: the 50 largest companies account for about 70% of sales.
Competitors of consumer electronics and appliances stores include discount stores, warehouse clubs, department stores, Internet and mail order retailers, and specialty retailers.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product segments include computers and peripherals (about 25% of industry revenue); telephones (15%); major household appliances (15%); and TVs (10%).
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