Consumer Electronics Purchases
As per various credible sources, the total consumer electronic sales in the US was $220.86 billion in 2017, and 83.6% of these total sales were generated by retailers. Below are our detailed methodology and deep findings pertaining to the research.
From the research, we have provided the percentage of consumer electronics sold on a retailer's website, but we could not find the percentage of consumer electronics sold on a manufacturers' website. Additionally, we could not find enough insights into the user journey of buying a consumer electronics product. We used the strategies below trying to find the missing information/data.
To find the percentage of consumer electronics sold on a manufacturer's website, we began our search by going through Statista website and various credible websites that could contain statistics of the US market. To find more insights on the consumer journey of buying electronic products, we searched through eMarketer website. From the above sources, we could not find any relevant information to answer the research criteria about the missing information.
Next, we went through various news reports and articles such as Twice which delivers news for consumer electronics only. On Twice website, we could find news reports about the percentages of consumer electronics sold on a retailer's website, but we could not find information on the percentage of consumer electronics sold on a manufacturer's website and insights on the user journey.
Finally, we tried getting a list of at least 10 consumer electronics manufacturers in the United States and find each company's sales revenue and insights about the consumer journey. Our aim was to find each company's data and triangulate it so that we can answer the research questions pertaining to manufacturer's percentage and consumer journey. However, we could only find general revenues for the companies. There was no specification if these revenues were generated through physical stores, online stores (websites), or other selling channels.
CONSUMER ELECTRONICS SOLD ON A RETAILER'S WEBSITE
According to Statista, in 2018, consumer electronic sales revenue was $385 billion and it is estimated to increase up to $398 billion this year, 2019. As per The Robin Report, in 2018, 29% of the total revenue generated by consumer electronics online was made through traditional retailer websites.
As per Twice news report, consumer electronics retailers began to increase their market size after the extended post-recession recovery in 2018. This reduced the bankruptcies, consolidation, and e-commerce competition experienced in the past decades., hence, making their market stronger, for example, they have a new surge of revenue and stability on the market. Also, the report states that this year, 2019, Amazon has retained 93% of 103 million U.S. Amazon prime members. Amazon, as one of the consumer electronics retail giant in the E-commerce industry, it clearly reveals that CE retailers are being patronized by the majority of consumers.
According to Dealerscope report, consumer electronics total sales were $220.84 billion in 2017, and out of these total sales, consumer electronic retailers generated 83.6% of it, meaning, only $44 billion was generated by other consumer electronics merchants in the industry.
A customer usually spends $233 per purchase on the traditional retailer website; this value is four times higher compared to when a consumer purchase on the pure online retailers.
CONSUMER ELECTRONICS SOLD ON A MANUFACTURER'S WEBSITE
According to the author, Lauren Freedman or the Senior Vice President of digital strategy for Astound Commerce, in 2017, 59% of consumers preferred to go to the brand sites to research about the product they want, and 55% of consumers wanted to buy products directly on brand websites.
There are four reasons why the majority of consumer electronics sales are done through the manufacturer's website. The reasons include the consumers can give their experience about the products, it improves the relationship between the manufacturer and consumer, helps the manufacturer gather data for product improvement, and this is where a manufacturer can opt to focus on online channel to reach prospects customers.
In 2017, 50% of consumer electronics from manufacturer's website were graded A, 43% of the customers said that the rating of customer engagement by the manufacturers is good, 77% of the consumers visited the manufacturer's physical store before even buying, 51% of the customers who bought consumer electronics on a manufacturer's website, they first saw an advert on social media (Facebook, Pinterest, among others), and only 9% took time to look through billboards to buy consumer electronics products from the manufacturers.
OTHER HELPFUL FINDINGS
According to Criteo survey report, customers usually start their shopping by browsing online because they want to study the product features first, before buying online or in-store. The report also revealed that 83% of consumers are omnishoppers, meaning they shop using a variety of tools like phones to browse and buy products. While 74% of consumers in the United States report preferring to shop oline, 77% also plan to shop in-store during the course of 2019.
In 2017, 67% of consumers purchased their products directly on a retailer's website and 54% of shoppers made unplanned online purchases of consumer electronics products in the United States.