Electrical Goods Retailing - Italy - February 2019

OVERVIEW
What you need to know
Areas covered in this report
EXECUTIVE SUMMARY
The market
Consumer spending
Figure 1: Italy: Consumer spending on electrical items (incl. VAT), 2014-18
Sector size and forecast
Figure 2: Italy: Household goods specialists’ sales, excl VAT, 2014-18
Channels of distribution
Figure 3: Italy: estimated distribution of spending on electrical/electronic goods by channel, 2018
Companies and brands
Key metrics
Market shares
Figure 4: Italy: Leading electrical retailers’ shares of spending on electricals, 2018
Online
The consumer
What they buy
Figure 5: Italy: electrical products purchased in the last 12 months, January 2019
How they shop
Figure 6: Italy: how they shop for electricals, in-store and online, January 2019
Where they shop
Figure 7: Italy: where they shop for electricals, January 2019
Attitudes to shopping for electricals
Figure 8: Italy: attitudes to shopping for electrical/electronic goods, January 2019
What we think
ISSUES AND INSIGHTS
What are the opportunities for store-based retailers?
The facts
The implications
Is online retailing of electricals finally taking off in Italy?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Electrical spending growth outstrips the market
Specialist retailers likely to have lost share
Prices of most electrical goods are falling
Specialists still account for the majority of spending on electricals
CONSUMER SPENDING
Economy weakening
Electrical spending growth outstrips the market
Figure 9: Italy: Consumer spending on electrical items (incl. VAT), 2014-18
SECTOR SIZE AND FORECAST
Specialist retailers likely to have lost share
Figure 10: Italy: Household goods specialists, sales, excl VAT, 2014-18
Figure 11: Italy: Household goods specialists, forecast sales, excl VAT, 2019-23
INFLATION
Prices of most electrical goods are falling
Figure 12: Italy: Consumer prices, Annual % change, 2014-18
Figure 13: Italy: Consumer price inflation on electrical items, annual % change, July 2017-December 2018
CHANNELS OF DISTRIBUTION
Specialists claim the majority of spending on electricals
Figure 14: Italy: estimated distribution of spending on electrical/electronic goods by channel, 2018
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Expert/Unieuro is market leader
Unieuro on strong growth trajectory
Media World struggles to keep pace
Amazon growth outstrips Unieuro
Unieuro overtakes Media World to become biggest chain
Electricals one of the most well-developed sectors of online retailing
LEADING PLAYERS
Expert/Unieuro is market leader
Unieuro on strong growth trajectory
Media World struggles to keep pace
Euronics, Trony and Comet
Amazon growth outstrips Unieuro
Figure 15: Italy: Leading electrical retailers, sales, 2014-18
Figure 16: Italy: Leading electrical retailers, outlet numbers, 2014-18
Figure 17: Italy: Leading electrical retailers, sales per outlet, 2014-18
MARKET SHARES
Unieuro overtakes Media World to become biggest chain
Figure 18: Italy: Leading electrical retailers’ shares of spending on electricals, 2015-18
ONLINE
Technology ownership
Figure 19: Italy: personal ownership of smartphones by gender and age, Q4 2018
Figure 20: Italy: Household technology ownership, Q4 2018
Online activity
Figure 21: Italy: online purchasing in the past 12 months compared to other major European economies, 2014-18
Shopping online
Figure 22: Italy: Proportion of people buying electrical items online in the last 12 months, 2009-18
Online sales
Leading online players
Figure 23: Italy: Estimated sales of electricals online by leading retailers, 2015-18
THE CONSUMER – WHAT YOU NEED TO KNOW
Mobile phones most popular purchase
Trend towards online slowing?
Amazon is the most popular place to buy electricals
Consumers no longer expect to pay full price and Amazon is their online default
WHAT THEY BUY
Mobile phones most popular purchase
Figure 24: Italy: electrical products purchased in the last 12 months, January 2019
Figure 25: Italy: electrical products purchased in the last 12 months, by gender, January 2019
Figure 26: Italy: electrical products purchased in the last 12 months, by age, January 2019
HOW THEY SHOP – ONLINE AND IN-STORE
Trend towards online slowing?
Figure 27: Italy: how they shop for electricals, in-store and online, January 2019
Figure 28: Italy: how they shop for electricals, in-store and online, by gender and age, January 2019
WHERE THEY SHOP
Amazon is the most popular place to buy electricals
Figure 29: Italy: where they shop for electricals, January 2019
Figure 30: Italy: where they shop for electricals, by age, January 2019
Channels used by retailers bought from
Figure 31: Italy: where they shop for electricals, by how they shop, January 2019
Figure 32: Italy: where they shop for electricals (leading specialists only), by how they shop, January 2019
ATTITUDES TO SHOPPING FOR ELECTRICALS
Consumers no longer expect to pay full price and Amazon is their online default
Figure 33: Italy: attitudes to shopping for electrical/electronic goods, January 2019
Attitudes to shopping for electrical products by how they shop
Figure 34: Italy: attitudes to shopping for electrical/electronic goods, by how they shop, January 2019
Attitudes by retailers used
Figure 35: Italy: attitudes to shopping for electrical/electronic goods, by where they shop (Specialists), January 2019
Figure 36: Italy: attitudes to buying electrical/electronic goods, by where they shop (online non-Specialists), January 2019
APPENDIX: DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
AMAZON INTERNATIONAL
What we think
Prime
Marketplace
And what does that mean for electricals?
Where next?
Company background
Company performance
Figure 37: Amazon: Sales by activity, 2018
Mintel estimates
GTV vs Consolidated vs Direct sales
Recent performance
Figure 38: Amazon Group: Group financial performance, 2014-18
Figure 39: Amazon International: Estimated retail sales performance, 2015-18
Sales of electrical goods
Figure 40: Amazon Europe:  estimated sales of electrical products, 2018
Retail offering
Consumer profile
Product mix
Figure 41: Amazon UK:  Estimated sales by product, 2017
Marketing
CECONOMY
What we think
Trouble at the top as CEO departs
Hits pause button on Fnac Darty tie-up for now
Services prove lucrative ground for development
Moving towards frictionless payment in stores
Company background
Company performance
Figure 42: Ceconomy: Group financial performance, 2013/14-2017/18
Figure 43: Ceconomy: Outlet data, 2013/14-2017/18
Retail offering
EURONICS INTERNATIONAL
What we think
Multichannel strategy compromised by group structure
Rethinking the digital sales channel
Reinventing physical points of sale
Company background
Company performance
Figure 44: Euronics International: estimated group financial performance, 2013-17
Figure 45: Euronics International: estimated outlet data, 2013-17
Retail offering
EXPERT EUROPE
What we think
The problems of operating a voluntary group
Online weak
Free recycling of old appliances bolsters green credentials
Company background
Company performance
Figure 46: Expert Europe: Estimated group financial performance, 2014-18
Figure 47: Expert Europe: Estimated outlet data, 2014-18
Retail offering