Global Computers & Consumer Electronics Store Industry
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 retail sale 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.