Table of Contents
Executive Summary
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- The market
- Spending and inflation
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- Figure 1: France: Consumer spending on electrical items (annual % change in volumes, 2010 prices), 2010-14
- Channels of distribution
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- Figure 2: France: Estimated distribution of spending on electrical/electronic goods, 2015
- Sector size and forecast
- Leading players
- Key metrics
- Market shares
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- Figure 3: France: Leading specialist electrical retailers: Shares of spending on electricals items, 2015
- Online
- The consumer
- Where they shop
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- Figure 4: France: Where they bought electrical goods in the last 12 months, in-store versus online/catalogue, January 2016
- Levels of satisfaction
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- Figure 5: France: Levels of satisfaction with last electricals retailer purchased from, January 2016
- What we think
Issues and Insights
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- What does the Fnac/Darty deal mean?
- The facts
- The implications
- How can store-based retailers respond to the rise of Amazon?
- The facts
- The implications
The Market – What You Need to Know
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- Economy weak but spending picking up
- Electricals market impacted by falling prices
- Specialists dominate distribution, with the big players growing share
- Hypermarkets losing non-food sales but online expanding fast
- Specialist electricals retailers standing firm
- Countering competition from online
Spending and Inflation
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- France’s economy a weak spot in the eurozone
- Consumption and purchasing power regaining momentum
- Electricals market buoyed by telecommunications
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- Figure 6: France: Consumer spending on electrical items (incl. VAT), 2010-15
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- Figure 7: France: Consumer spending on electrical items (annual % change in volumes, 2010 prices), 2010-14
- Inflation
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- Figure 8: France: Consumer Prices, Annual % change, 2011-15
- Figure 9: France: Consumer price inflation on electrical items, annual % change, July 2014-December 2015
- Unit volumes
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- Figure 10: France: Main Electricals markets, spending (inc VAT) 2011-19
Channels of Distribution
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- Specialists dominate
- Grocers important, but in decline
- Online taking market share
- Department stores most significant in Paris
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- Figure 11: France: Estimated distribution of spending on electrical/electronic goods, 2015
Sector Size and Forecast
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- Specialists have proven resilient
- Standing up to the threat from online players
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- Figure 12: France: Electricals retailers’ sales, excl VAT, 2010-15
- Subdued growth on the horizon
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- Figure 13: France: Electricals retailers’ sales, Forecasts, excl VAT, 2016-20
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- Figure 14: France: Electricals retailers’ sales as % of all spending on electricals, 2010-15
Leading Players – What You Need to Know
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- A mature market, with consolidation on the cards
- Darty the market leader
- Top groups growing combined share
- French online market at a medium stage of development
- Amazon leads, but Fnac, Darty and Boulanger all big online
Leading Players
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- The triumvirate of Darty/Boulanger/Fnac
- The Darty/Fnac merger
- Integrating online, with marketplaces a key driver
- Expanding physical stores too
- Furniture/electricals combo retailers also strong
- Independents in decline
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- Figure 15: France: Leading specialist electrical retailers: sales, 2012-15
- Figure 16: France: Leading specialist electrical retailers: Outlet numbers, 2012-15
- Sales per outlet
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- Figure 17: France: Leading specialist electrical retailers: sales per outlet, 2012-15
Market Shares
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- Fnac has larger sales but Darty is leader in electricals
- Top groups growing combined share
- Conforama and BUT also important
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- Figure 18: France: Leading specialist electrical retailers: shares of spending on electricals items, 2012-15
Online
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- France at a medium stage of development
- Online activity
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- Figure 19: France: Online buyers of electrical items in last three months, 2011-15
- Online sales
- Leading online players
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- Figure 20: France: Top retail sites by number of unique visitors, October-November 2015
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- Figure 21: France: Estimated sales of electricals online by leading retailers, 2014
The Consumer – What You Need to Know
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- Men and younger age groups most likely to buy
- Specialists most popular, but online catching up
- Amazon and Darty lead the market
- Consumers are satisfied with product-related issues
- But less satisfied with services
Who is Buying?
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- More men than women
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- Figure 22: France: Purchasing of electrical goods in the last 12 months, by gender, January 2016
- More younger people than older
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- Figure 23: France: Purchasing of electrical goods in the last 12 months, by age, January 2016
Where they Shop for Electrical Goods
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- Specialists popular but online now ahead of the grocers
- Amazon and Darty now level-pegging overall
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- Figure 24: France: Where they bought electrical goods in-store or online in the last 12 months, January 2016
- Amazon dominant online
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- Figure 25: France: Where they bought electrical goods in the last 12 months, in-store versus online/catalogue, January 2016
- Average age and affluence
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- Figure 26: France: Where they bought electrical goods, by age and income, January 2016
Levels of Satisfaction
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- Satisfaction higher on product than service related aspects
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- Figure 27: France: Levels of satisfaction with last electricals retailer purchased from, January 2016
- Satisfaction with specific retailers
- Darty
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- Figure 28: France: Those agreeing they were satisfied at Darty relative to electrical retailer average, January 2016
- Fnac
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- Figure 29: France: Those agreeing they were satisfied at Fnac relative to electrical retailer average, January 2016
- Amazon
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- Figure 30: France: Those agreeing they were satisfied at Amazon relative to electrical retailer average, January 2016
Amazon Europe
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- What we think
- An evolving offer
- Amazon Prime extends its breadth and reach
- A sense of occasion
- Product development continues
- Delivery gets quicker, but pushes fulfilment costs higher
- Click & Collect points limited to US universities
- Looking ahead
- Company background
- Company performance
- Growth slows in Europe
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- Figure 31: Amazon.com Inc: Group financial performance, 2010-15
- Sales mix
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- Figure 32: Amazon: Composition of net sales, 2015
- Retail offering
Apple Retail
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- What we think
- It’s all about the iPhone
- The importance of innovation
- Apple stores an important to success of the brand
- Company background
- Company performance
- Worldwide
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- Figure 33: Apple Retail: sales and operating profit, 2011-15
- Figure 34: Apple Retail: Outlet data, 2010/11-2016
- Apple Retail UK
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- Figure 35: Apple Retail UK: Group financial performance, 2009/10-2014/15
- Figure 36: Apple Retail UK: Outlet data, 2010/11-2016
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- Figure 37: Apple Retail: European stores, 2014-16
- Retail offering
Boulanger/HTM Group
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- What we think
- Targeting high population urban locations
- Latest stores adapted to the digital age
- Adapted well to online
- Company background
- Company performance
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- Figure 38: HTM (Boulanger): Group sales performance, estimated, 2011-15
- Figure 39: HTM (Boulanger): Outlet data, 2011-15
- Retail offering
Darty Group
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- What we think
- Fnac takeover deal
- Digital strategy
- First-to-market edge over rivals
- Marketplace widens product offering and enhances price perception
- Rolling out bespoke fitted kitchens offer into more stores
- Capitalising on consumer demand for connected technology
- Customer services offer
- New store card with upgraded credit offering and loyalty benefits
- Company background
- Company performance
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- Figure 40: Darty Group: Group financial performance, 2010/11-2014/15
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- Figure 41: Darty Group: Outlet data, 2010/11-2014/15
- Retail offering
Euronics International
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- What we think
- Company background
- Company performance
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- Figure 42: Euronics International: Group financial performance, 2010-14
- Figure 43: Euronics International: Outlet data, 2010-14
- Euronics membership
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- Figure 44: Euronics: Members, countries and trading names, 2016
Expert Europe
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- What we think
- The up-sides
- The downsides
- Company background
- Online
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- Figure 45: Expert International, online shopping availability, 2016
- Company performance
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- Figure 46: Expert Europe: Estimated sales at retail, excl. VAT, 2011-15
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- Figure 47: Expert Europe: Outlet data, 2011-15
- Expert Germany
- Expert Italy
- Expert Spain
- Expert France
- Retail offering
- Store formats
Fnac
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- What we think
- Darty deal
- Fnac Kids roll-out completed
- Aiming for market leadership in the fast-growing connected devices sector
- Expanding its digital cultural offering
- Enhanced marketplace offering puts it in direct competition with Amazon
- Company background
- Company performance
- 2015
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- Figure 48: Fnac: Group financial performance, 2010-15
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- Figure 49: Fnac: Outlet data, 2010-15
- Retail offering
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Data sources
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