|SIC Codes:||5722 5946 5734 5731|
|NAICS Codes:||443142 443141|
Companies in this industry sell household appliances, cameras, computers, and other electronic goods. Major companies Best Buy, RadioShack, and the retail operations of Apple, Conn's, and hhgregg (all based in the US), as well as Dixons (UK), Gome (China), and Yamada Denki (Japan).
Technological innovation and the need to replace or upgrade products drive demand, which also depends on consumer disposable income. Profitability for individual companies depends on the ability to generate store traffic and repeat business, as well as effective merchandising. Large companies enjoy economies of scale in purchasing and marketing. Small companies can compete effectively by offering specialized products or superior customer service. The US industry is concentrated: the 50 largest companies account for 70 percent of sales.
Major product segments include computer equipment, TVs, and major household appliances. Other products include video equipment (video recorders, DVD players, and electronic games), audio equipment (home and auto sound systems, home theater systems, and accessories), and telephones (including wireless phones and smartphones). The industry typically refers to large appliances other than TVs, including such items as refrigerators and washing machines, as "white goods." Consumer electronics and appliance stores may also generate revenue from installation and repair or maintenance agreements, along with resale of third-party wireless phone, Internet access, or satellite TV or radio service.Buy Now