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Computer & Consumer Electronic Store: Top Market Reports

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Global Computers & Consumer Electronics Store Industry

To start your computer store market research in the right way, there are few things you must know. The global consumer electronics store industry was adversely affected by the economic recession as low consumer confidence lead to a dramatic fall in demand. As consumer and business confidence recovers, demand for electronics offering high quality technological specifications will rise. Consumer electronics stores are involved in the specialty retail sector with of a wide spectrum of electrical goods, appliances, and home entertainment goods including stereo systems, TVs and DVD and blu-ray players. Consumer electronics stores get their supplies from both domestic and international wholesalers and manufacturers to sell to private consumers and businesses. The majority of the market is comprised of new purchases, with the replacement market accounting for a smaller percentage of overall sales.

Demand for computers in the household segment of the market continues to rise due to increasing penetration of broadband. Computers are also being perceived as increasingly necessary, with parents eager to encourage their children to become computer proficient for educational and professional purposes. While computer demand fell during the economic recession, recovery is expected to buoy consumer confidence and incite increased purchases. However, many consumers will opt to purchase their computers from online retailers and big box stores rather than computer stores. This intensified rivalry combined with vertical integration among computer retailing companies will mean a limited rate of revenue growth over the next five-year period. The majority of operators sell software, notebooks and desktops along with computer accessories such as keyboards, scanners and printers.

Regional Market Share

There are more than 10,000 computers stores operating in the US market, according to research from Hoover’s. The combined yearly revenue of these stores is around $16 billion. The industry is characterized by fragmentation and encompasses companies with physical retail facilities involved in the retail of computers, software and computer peripherals. Certain outfits also offer their customers additional services like computer repair and support.

Factors fuelling demand in the computer store industry include income levels, technological innovation and growth in the business sector. Companies compete through pricing, service quality and merchandising. Larger outfits compete effectively thanks to advantages in marketing, distribution and purchasing, while smaller outfits focus on meeting the specific demands of a local market, high-quality customer service and providing specialized products.

Computer stores have to compete with other providers such as internet and catalog retailers, consumer electronics stores, mass merchandisers, office supply stores, value-added resellers, warehouse clubs and direct sales outlets of computer, software and peripheral manufacturers. Computers and peripherals account for 60% of overall revenues in the computer stores industry. Cameras, electronic game devices and video recorders represent 5% of overall sales. Other services offered by computer stores include repair, installation, training, technical support and tailor-made computer systems.

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