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According to a Market Research report, US consumer electronics sales have slowed down considerably this year. While the report still doesn’t include Black Friday sales which happen after the US Thanksgiving holidays, it’s unclear whether US retailers will be able to bounce back from the sale slump.
Best Buy Co. and Target Corp. both reported slow third-quarter sales.
Both stores reported a decline in consumer electronics sales. Target saw a double-digit decline in electronics sales, which is a category they offered significant promotions for earlier in the year. Best Buy saw falling sales of tablets, mobile phones, and digital imaging products.
According to a report by First Research Inc., the U.S. industry for consumer electronics is very concentrated, with 50 of the largest companies accounting for 70% of sales. The market itself gains annual revenue of about$100 billion.
With the holidays coming up, it’s unclear if stores will hit their revenue goals. Because shopper interest in consumer electronics is low, there is no guarantee that Best Buy will be able to rebound from their decline in profits.
Interestingly enough the Philippine consumer elecrtronics market will continue to increase.
The Philippine consumer electronics market has the strongest growth potential in the region over the medium term.This is based on Market Research’s Country Risk team’s view for robust and broad based income growth. This is bsed on their assessment of low device penetration rates and declining device prices.They forecast that the overall market will grow at a CAGR (compounded annual growth rate) of 5.4% 2015-2019 to reach USD7.96 billion in 2019. In the short-term the report says that continued handset value growth outperformance as the smartphone boom raises handset spending. But by the latter years of the forecast when there will be vastly diminished numbers of smartphone first-time buyers, we expect PC sales to outperform.
Computer Sales will slight increase in 2016: From USD2.1 billion in 2015 to USD2.2bn in 2016, +4.7% in US dollar terms. Growth forecastto accelerate slightly from 2015, with strong demand expected in the retail market for both notebooks andtablets.
AV Sales: USD1.0bn in 2015 to USD1.1 billion in 2016, +4.4% in US dollar terms. Stabilisation of the digital camera market will allow for an increase in the growth rate in 2016, but due to TV set price competition it will continue to be the under performing segment.
That’s a good sign that things will continue to be rosy until next year.
For more information on these reports, go to www.marketresearch.com or click here.
