Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Total US retail sales and fan chart forecast of electronics*, at current prices, 2015-25
- Impact of COVID-19 on online electronics
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on online electronics, May 2021
- Opportunities and challenges
- Offer new ways to drive trial and exploration of electronics to spark interest and consideration
- Cater to consumers focus on sustainability and interest in alternative shopping options
- Show consumers what’s possible through cross-category partnerships
The Market – Key Takeaways
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- Electronics are $180 billion market
- Households spend an average of $1,400 on electronics
Market Size and Forecast
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- Showing signs of continued growth, electronics pass $180 billion in retail sales
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- Figure 3: Total US retail sales and fan chart forecast of electronics*, at current prices, 2015-25
- Figure 4: Total US retail sales and forecast of electronics*, at current prices, 2015-25
- Households spend on electronics increases to an average of $1,400 in 2020
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- Figure 5: Average household spending on electronics*, 2015-20
- Impact of COVID-19 on online electronics
Market Factors
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- Improving unemployment rates and consumer confidence spark spending
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- Figure 6: Consumer confidence and unemployment, 2000-April 2021
- Online shopping increases drastically during pandemic
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- Figure 7: Online shopping behavior, by pre- COVID-19 and during COVID-19, February 2021
- Concerns and changes to online privacy policies threaten targeted marketing
Companies and Brands – Key Takeaways
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- LG launches social shopping event
- Best Buy pivots to digital order model following pandemic
Market Opportunities
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- Expand resale shopping options – both for buyers and sellers
- Provide confidence and reassurance through test periods and flexible return policies
- Partner with other passion areas to drive interest
Competitive Strategies
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- LG Electronics launches social shopping event
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- Figure 8: LG Electronics’ “The Upgrade” social shopping event
- Best Buy fast-tracks online strategy following pandemic
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- Figure 9: Best Buy expands concept test to focus on ecommerce
The Consumer – Key Takeaways
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- Need and special offers drives online electronics shopping
- Browsing is a key element to shopping online
- Consumers want to have confidence and reassurances when shopping online
- Alternative shopping options can encourage shopping and drive appeal
- Product reviews influence purchases
Familiarity with Electronics
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- Education and guidance are needed when shopping for electronics
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- Figure 10: Technology and electronics knowledge, February 2021
- Men confident in their technology knowledge
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- Figure 11: Technology and electronics knowledge, by gender, February 2021
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- Figure 12: Best Buy highlights product benefits
- Younger generations are most confident in the category
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- Figure 13: Technology and electronics knowledge, by generation, February 2021
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- Figure 14: Targeting consumers with varying knowledge levels
Approach to Shopping for Electronics
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- Consumers buy in-stores, browse on-line
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- Figure 15: Browsing versus purchasing, by shopper type, February 2021
- Discounts and replacement drive purchase
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- Figure 16: Approach to shopping for electronics, February 2021
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- Figure 17: Ikea offers buy back furniture program
- Younger consumers are more flexible on why and when they buy, but brand name matters for most consumers
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- Figure 18: Approach to shopping for electronics, by gender, February 2021
Items Purchased and Planned Purchases
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- Changes in lifestyle and priorities drive purchases online
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- Figure 19: Items purchased online; Purchases and Planned purchases, February 2021
- Gen Z and Millennials have broader category interests
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- Figure 20: Planned purchases, by generation, February 2021
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- Figure 21: Playstation highlights tech and personalization features
- Figure 22: Vivint promotes safety for the whole family
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- Figure 23: Best Buy promotes health benefits from electronics
Retailers Shopped
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- Amazon dominates online
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- Figure 24: Retailers shopped, February 2021
- Amazon’s impact spans all income levels
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- Figure 25: Retailers shopped, by household income, February 2021
Factors Driving Online Shopping for Electronics
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- Product need drives demand
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- Figure 26: Factors driving online shopping, February 2021
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- Figure 27: Target x Apple partnership evolves in-store
- Social media has largest impact on younger consumers
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- Figure 28: Shopping attitudes, by generation, February 2021
- Figure 29: Social influencer iJustine partners with electronics retailers
Purchases Influences
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- Product reviews influence purchases
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- Figure 30: Purchase influences, February 2021
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- Figure 31: Product reviews by CNET and Best Buy
- Women especially influenced by reviews and recommendations
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- Figure 32: Purchase influences, by gender, February 2021
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- Figure 33: Bose adds NFL draft picks to TeamBose
- Product-specific info resonates with younger audiences; older consumers influenced more by brand name
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- Figure 34: Purchase influences, by generation, February 2021
Consideration Factors
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- Delivery/shipping cost most important factor
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- Figure 35: Consideration factors, February 2021
- Younger consumers look for personalization and immediacy; older consumers focus more on the basics
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- Figure 36: Select consideration factors, by generation, February 2021
- Figure 37: Customization options through Xbox’s Design Lab
Purchase Barriers
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- Negative or lack of product reviews and info can prevent online purchase
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- Figure 38: Purchase barriers, February 2021
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- Figure 39: Arlo Smart Home highlights delivery notifications
- Provide info, options and in-store elements to overcome key barriers
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- Figure 40: Purchase barriers, by generation, February 2021
Attitudes and Behaviors
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- Electronics recycling program attractive to many; guidance is needed
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- Figure 41: Electronics attitudes and behaviors, February 2021
- Interest in sustainability and shopping secondhand across genders
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- Figure 42: Electronics attitudes and behaviors, by gender, February 2021
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- Figure 43: Best Buy electronics recycling program
- Figure 44: OfferUp highlights electronics offering
Ways to Encourage Additional Online Shopping
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- Consumers want more flexibility and reassurances
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- Figure 45: motivators for shopping, February 2021
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- Figure 46: Grover offers electronics rentals
- Younger consumers look for various enhancements; older consumers focused on reassurances
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- Figure 47: motivators for shopping, by gender and age, February 2021
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
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