The state of the consumer electronics retail industry
Consumer electronics is an essential sector given how fast technology changes, but that doesn't guarantee a broad playing field that can accommodate businesses of varying sizes. According to Statista, Amazon, Best Buy, Walmart and Apple represent the four biggest electronics sellers between 2015 and 2017. Combined, Amazon and Best Buy account for more than $68 billion in sales alone.
"The big names in electronics retail may force smaller businesses to get creative."
What does this mean for smaller electronics businesses? It likely won't be their death knell yet, but their slice of the pie is certainly shrinking. Let's take a closer look and see how they might be able to change:
A complex marketplace
The entire electronics retail sector dropped off between 2012 and 2017, according to IBISWorld, seeing average annual contraction of 1.7 percent over this period. As such, larger companies are also feeling a crunch. That said, they also have more room to absorb and move past it, an advantage that smaller firms can't necessarily claim.
Embracing new strategies a must
While e-commerce represents the lion's share of consistent electronics retail revenue, it's not the whole story. Investor's Business Daily pointed out retailers that divided their presence effectively between brick-and-mortar and online outlets had the best chances of success despite competition.
Electronic retailers in the SMB space may also want to consider adopting strategies that might initially seem off the beaten path, such as allowing purchases through credit and keeping track of customers through alternative credit data. This could open them up to a broader audience and ultimately bolster their bottom lines.