Sunday, February 19, 2012

Consumer electronics earn retailers $144bn in 2011

It is perceived that people would like to buy consumer electronics, or generally durable products, from brick and mortar stores since virtual environment cannot satiate the urge of a buyer to feel the tangibility, which is one of the prime motivations behind shopping offline.

But, the current retail trend is proving this perception wrong/incorrect. Especially, last year’s retail spending counts presented a telltale account of people counting on other important factors and not just physical presence while shelling out money on purchase of consumer electronics.

According to a latest NPD’s report, online sale of consumer technology hardware grew seven percent in 2011 and together with direct mail and TV shopping, it constituted a quarter of total sale.

Total retail spending on consumer electronics was recorded at $144 billion and 60 per cent of which was on personal computers, TVs, tablets/e-readers, mobile phones, and video game hardware, said a world’s leading retail market researcher.

Tablets/e-readers earned the retailers $15 billion last year, indicating a 100 per cent rise over the preceding year. Apple clinched the top position with its brands posting 36 per cent growth in top-line year over year.

It is noteworthy that revenue of other top brands including Hewlett-Packard, Samsung, Sony, and Dell dipped three per cent, six per cent, 21 per cent, and 17 per cent respectively, noted the report.

Despite increase in online and decrease in in-store sales, however, major sale of top category (e-readers/tablets and cellular phones) took place in physical retail outlets.

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