|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 include Best Buy, Conn’s, GameStop, hhgregg, and the retail operations of Apple (all based in the US); as well as Darty (UK), Gome (China), METRO Group's Media Markt and Saturn brands (Germany), and Yamada Denki (Japan).
Demand is driven by consumer spending as well as technological innovation, which entices consumers to replace or upgrade older products. 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 about 70% of sales.
Major product segments include computers and peripherals (about 25% of industry revenue); telephones (15%); major household appliances (15%); and TVs (10%). Other products include video equipment (video recorders, DVD players, and electronic games); audio equipment (home and auto sound systems, home theater systems, and accessories); cameras and photography equipment; and computer software. 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