Where Consumers Shop for Consumer Electronics

August 2024

Despite the strong growth of e-commerce, offline retail remains important for consumer electronics. Consumer regions like Latin America and Middle East and Africa still prefer to see and try products before buying while consumers are also looking for more immersive store experiences to try new tech products. E-commerce is still expected to outgrow offline channels as consumers become more accustomed to the experience.

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This report comes in PPT.

Key Findings

Manufacturers are shifting their focus towards profitability

After seeing sales decline in 2022 and 2023 due to economic uncertainties, manufacturers decided to stop competing on price, but rather focus on high-value products to build a wider profit margin. Innovation in new features such as AI will become a focus over the forecast period.

New manufacturers rely on e-commerce for new market entry

E-commerce has proven itself as an effective growth tool for new market entry, helping brands build awareness quickly without having an extensive offline distribution network. Noise and boAt relied on e-commerce to enter the Indian market and are now in the top six brands.

Consumers in Latin America and Middle East and Africa prefer to shop offline

Consumers in Latin America and Middle East and Africa still prefer to see and try the product before making any purchase decision. Lack of trust in delivery mechanism and online payment further contribute towards their preference for offline retail.

Retailers are focusing on creating immersive shopping experiences

Consumers are looking for a more immersive experience while shopping in stores, allowing them to try new tech in an interactive environment. Electronics shopping is no longer just buying products but also a leisure activity for consumers.

E-commerce continues to experience significant growth in Asia Pacific

Asia Pacific remains the strongest market for e-commerce, as many consumers are already comfortable with the platform and enjoy the many options of products at different price points.

 

Scope
Key findings
A shift of focus towards high-value products to drive profitability kickstarts 2024 recovery
Portable products remain the highest growth driver to gain market shares
Emerging countries see strong growth in the past five years
Offline channel still contributes to more sales than e-commerce despite recent decline
North America and Asia Pacific heavily rely on e-commerce to drive sales
Manufacturers rely on e-commerce for new market entry
Appliances and electronics specialists dominate retail offline
Offline stores focus on an enhanced retail experience to gain market share
Appliances and electronics specialists sees a rebound in 2024
Apple overtakes Best Buy as it continues to open new stores in new locations
Grocery retailers remains crucial in developing regions
Grocery retailers with new initiatives to recover electronics sales
In-home consumer electronics contributes most of private label’s revenue
E-commerce growth stabilises after the pandemic
Portable consumer electronics to continue driving e-commerce sales
E-commerce to continue its strong momentum in Asia Pacific
Amazon remains the favourite e-commerce platform for electronic purchases
Developing countries will be the strongest growth driver
E-commerce growth to stabilise as appliances and electronics specialists remains relevant
Key takeaways

Consumer Electronics

Consumer Electronics refers to the sales of Computers and Peripherals, In-Home Consumer Electronics, In-Car Entertainment and Portable Consumer Electronics to the end consumer.

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