introduction editor’s comment Against all odds
Times are tougher than ever and independent retailers will have to demonstrate considerable business skills and good understanding of the market and their customers to survive the current recession.
Everyone agrees that consumer confidence is a key factor in the economic recovery of the country. And yet at present the consumer confidence index is at an all time low level (-28) and 14 points lower than in February 2010, reported Nigel Catlow, GfK business group director, at the recent annual retra conference. For this situation to change, substantial improvements will have to take place in areas such as employment, the housing market and financial services. This is unlikely to happen overnight,
in association with GfK
Anna Ryland
therefore independent retailers need to explore opportunities closer to home. And, in fact, this fast changing industry even at present offers considerable sales opportunities in all its sectors.
Consumer electronics
In 2010, the overall sales value of consumer electronics declined by 7.3%, despite British consumers’ insatiable desire for new technology. Its key product category, televisions, recorded decline in volume (-3.8%), value (-5.4%) and average price (-1.7%). Yet, the market is sustained by the sales of new technology such as 3DTV, internet television, the transition from standard definition to high definition products and the growing demand for larger screen sizes. The sales volume of the 40-42in TV market grew by 25.8%, the 43-49in market was up by 24% and the 50in plus by 43%. Category growth will also come from the LED panels, Freeview and the product opportunities offered by the last stage of the digital switchover.
3DTV and internet television will in turn stimulate additional sales of Blu-ray, home cinema products and gaming hardware. A simultaneous explosion of handheld connected devices, such as tablets, smartphones and e-readers, is also predicted. The fast expanding gadget ownership offers accessory-related sales opportunities, such as 3D glasses, wi-fi dongles, headphones and cases.
Domestic appliances
The beginning of the replacement cycle helped to stabilise the domestic appliance market which in 2010 showed a marginal growth of 0.9%. The built-in sector has
IndependentElectricalRetailer 6 BusinessBook2011
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