consumer electronics audio systems
Systems on alert
Competition from the home PC is having an impact on the audio system sector.
The audio system market faces a major challenge from the home PC, which is increasingly becoming the system of choice for digital music libraries, as well as the gateway to online music and web-based audio services.
The total audio system market saw volumes fall by 8.8% for the 12 months ending December 2010 to 1.8 million pieces, and value fell by 5% to £277.4 million. Average price, however, rose by 4.2% to £153, suggesting increased activity in the mid- and high- end product sectors, and consumers opting for premium branded products.
Micro systems
Over the years, the Micro system’s dominance of the audio system market has declined and the latest figures show that this trend is continuing. Last year, Micro systems accounted for 45% of the market by volume and 23.4% by value, but now, those figures are 42.6% and 20.7% respectively. Sales declined 13.3% to 767,000 pieces and value fell 16.2% to £57.4 million. Average price was £75, a fall of 3.4%. A major living room competitor to the micro system is the iPod/MP3 player docking station with built-in speakers, and many micro systems include iPod docking, MP3 connectivity and USB playback to cater for the growing digital music market. As more and more Micro systems appear with tape decks and CD players stripped from their specification, the line between Micro systems and dedicated docking stations is blurring.
£ Mini systems
Mini system sales fell by almost a third in volume terms (30.7%) to 282,000 pieces, with value down a quarter (25.4%) to £45.7 million. The only ray of light was a 7.7% rise in the average price to £162. In contrast, Midi system sales grew by 58.3% to 166,000 pieces, with value up 62.1% to £31.1 million and average price rose by 2.4% to £188. The resurgence in Midi system sales could be a reflection of changing fashion trends or a sign that consumers are prepared to pay a little extra for a more powerful system.
IndependentElectricalRetailer Market trends
✔ Total market volume and value were down, but average price was up 4.2% as consumers opt for products with more features.
✔ The PC becoming the home for many digital music libraries.
✔ Micro system sales were down in all segments. Mini system down in volume and value, although average price up. Midi system sales increase in volume, value and average price.
✔ Micro system share of the market is still declining; now just under 43% of the market by volume and 21% by value.
✔ Audio streaming products a small but growing part of this sector.
✔ Home theatre market is declining and average price increase is disappointing.
24 BusinessBook2011
in association with GfK
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