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Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
Consumer electronics stores in the us industry report
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Consumer electronics stores in the us industry report

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  • 1. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 1IBISWorld Industry Report 44311Consumer ElectronicsStores in the USSeptember 2012 Justin Waterman2 About this Industry 17 International Trade 32 Industry Assistance2 Industry Definition 18 Business Locations2 Main Activities 33 Key Statistics2 Similar Industries 20 Competitive Landscape 33 Industry Data3 Additional Resources 20 Market Share Concentration 33 Annual Change 20 Key Success Factors 33 Key Ratios4 Industry at a Glance 20 Cost Structure Benchmarks 22 Basis of Competition 34 Jargon & Glossary5 Industry Performance 23 Barriers to Entry5 Executive Summary 24 Industry Globalization5 Key External Drivers6 Current Performance 25 Major Companies9 Industry Outlook 25 Best Buy Co. Inc.11 Industry Life Cycle 27 RadioShack Corporation13 Products & Markets 29 Operating Conditions13 Supply Chain 29 Capital Intensity13 Products & Services 30 Technology & Systems15 Demand Determinants 30 Revenue Volatility16 Major Markets 31 Regulation & Policywww.ibisworld.com | 1-800-330-3772 | info @ibisworld.com
  • 2. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 2About this IndustryIndustry DefinitionMain Activities The primary activities of this industry are Retailing new household appliances (e.g. refrigerators, washing machines and ovens) Retailing new personal appliances (e.g. hair dryers, curling irons and electric razors) Retailing computers alongside other household and personal appliances Offering repair services in conjunction with retail operations The major products and services in this industry are Audio equipment Computer hardware and software Home and office equipment Major appliances Small electric appliances TV and video equipment OtherSimilar Industries 44312 Computer Stores in the US Operators in this industry retail new computer peripherals and prepackaged computer software in addition to office equipment and supplies. 44313 Camera Stores in the US Operators in this industry sell new cameras and photographic equipment and supplies, often in conjunction with repair services and film developing. 45112 Hobby & Toy Stores in the US Operators in this industry retail new toys, games and hobby and craft supplies (except needlecraft). 45321 Office Supply Stores in the US Operators in this industry retail new stationery, school supplies and office supplies in conjunction with new office equipment, furniture and supplies. 45331 Used Goods Stores in the US Operators in this industry retail a wide assortment of used goods, including used consumer electronics. 81121 Electronic & Computer Repair Services in the US Services in this industry include repairing and maintaining consumer electronic equipment, computers and office equipment, and other electronic equipment.
  • 3. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 3About this IndustrySimilar Industries 81141 Appliance Repair in the US Services in this industry include repairing and servicing home and garden equipment and householdcontinued appliances. 45411a E-Commerce & Online Auctions in the US Operators in this industry retail consumer electronics via the internet. 45411b Mail Order in the US Operators in this industry retail consumer electronics via catalogs or mail order forms.Additional Resources For additional information on this industry www.appliancemagazine.com ApplianceMagazine.com www.ce.org Consumer Electronic Association www.census.gov US Census Bureau
  • 4. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 4Industry at a GlanceConsumer Electronics Stores in 2012Key Statistics Revenue Annual Growth 07-12 Annual Growth 12-17Snapshot $80.9bn -2.6% 3.0% Profit Wages Businesses $2.2bn $9.0bn 39,354 Revenue vs. employment growth Per capita disposable incomeMarket Share 10 4 5 2 % change % change 0 0 −5 −2 −10 −4 Year 04 06 08 10 12 14 16 18 Year 06 08 10 12 14 16 18 Revenue Employment SOURCE: WWW.IBISWORLD.COM p. 25 Products and services segmentation (2012)Key External Drivers 9.9% 1.5% 0.4% Home and office Other Small electricPer capita disposable equipment appliancesincomeConsumer 10.2% 31% TV and videosentiment index Audio equipment equipmentExternal competitionNumber of households 18% Computer hardware and software p. 5 29% Major appliances SOURCE: WWW.IBISWORLD.COM SOURCE: WWW.IBISWORLD.COMIndustry Structure Life Cycle Stage Mature Regulation Level Light Revenue Volatility Medium Technology Change Low Capital Intensity Low Barriers to Entry Medium Industry Assistance Low Industry Globalization Low Concentration Level Medium Competition Level Medium FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 33
  • 5. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 5Industry PerformanceExecutive Summary | Key External Drivers | Current PerformanceIndustry Outlook | Life Cycle StageExecutiveSummaryKey External Drivers Per capita disposable income Consumer sentiment index
  • 6. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 6Industry PerformanceKey External Driverscontinued Number of households External competition Per capita disposable income Consumer sentiment index 4 100 2 90 % change Index 0 80 −2 70 −4 60 Year 06 08 10 12 14 16 18 Year 04 06 08 10 12 14 16 18 SOURCE: WWW.IBISWORLD.COMCurrentPerformance
  • 7. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 7Industry PerformanceCurrent Performance Industry revenuecontinued 8 4 0 % change −4 −8 −12 Year 04 06 08 10 12 14 16 18 SOURCE: WWW.IBISWORLD.COMElectronics versushome appliances
  • 8. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 8Industry PerformanceElectronics versushome appliancescontinuedExternal competition
  • 9. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 9Industry PerformanceExternal competitioncontinuedIndustryOutlookFuture trends
  • 10. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 10Industry PerformanceFuture trendscontinuedElectronicsconvergence andsaturated productmarket
  • 11. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 11Industry PerformanceLife Cycle Stage 30 Maturity Quality Growth% Growth of profit/GDP Key Features of a Mature Industry Company High growth in economic consolidation; importance; weaker companies Revenue grows at same pace as economy level of economic close down; developed Company numbers stabilize; M&A stage importance stable technology and markets Established technology & processes 25 Total market acceptance of product & brand Rationalization of low margin products & brands 20 15 Quantity Growth Many new companies; minor growth in economic importance; substantial 10 technology change 5 Hobby & Toy Stores Consumer Electronics Stores Computer Stores 0 TV & Appliance Wholesaling Shake-out Electronic Part & Equipment Wholesaling Shake-out –5 Decline Potential Hidden Gems Time Wasters Crash or Grow? Future Industries Hobby Industries –10 –10 –5 0 5 10 15 20 25 30 % Growth of establishments SOURCE: WWW.IBISWORLD.COM
  • 12. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 12Industry PerformanceIndustry Life CycleThis industryis Mature The industry is underperforming Products, markets and technology
  • 13. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 13Products & MarketsSupply Chain | Products & Services | Demand DeterminantsMajor Markets | International Trade | Business LocationsSupply Chain KEY BUYING INDUSTRIES 99 Consumers in the US Households are the primary buyers for consumer electronics stores. Purchases are made for private use in homes, rather than resale. KEY SELLING INDUSTRIES 42362 TV & Appliance Wholesaling in the US This industry supplies household-type electrical appliances, room air-conditioners, gas clothes dryers or household-type audio or video equipment. 42369 Electronic Part & Equipment Wholesaling in the US This industry supplies electronic parts and equipment. 52222 Auto Leasing, Loans & Sales Financing in the US This industry helps retailers finance sales.Products & Services Products and services segmentation (2012) 9.9% 1.5% 0.4% Home and office Other Small electric equipment appliances 10.2% Audio equipment 31% TV and video equipment 18% Computer hardware and software 29% Total $80.9bn Major appliances SOURCE: WWW.IBISWORLD.COM TV and video equipment
  • 14. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 14Products & MarketsProducts & Services Computer hardware and softwarecontinued Audio equipment Major appliances
  • 15. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 15Products & MarketsProducts & Services Small electric appliancescontinued Home and office equipmentDemandDeterminants
  • 16. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 16Products & MarketsDemandDeterminantscontinuedMajor Markets Major market segmentation (2012) 11.5% Consumers aged 65 and older 13.2% Consumers aged 24 and younger 39.5% Consumers aged 35 to 54 17.3% Consumers aged 25 to 34 18.5% Total $80.9bn Consumers aged 55 to 64 SOURCE: WWW.IBISWORLD.COM Consumers aged 55 to 64 Consumers aged 25 to 54 Consumers younger than 25
  • 17. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 17Products & MarketsMajor Markets Consumers aged 65 and overcontinuedInternational Trade
  • 18. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 18 Products & Markets Business Locations 2012 West AK 0.2 New England ME Great Mid- 0.5 Lakes Atlantic 1 2 NY 3 WA MT ND 7.0 5 4 1.9 0.3 MN Rocky 0.5 1.8 WI OR Mountains SD 0.4 Plains 2.0 MI 3.7 PA 3.8 6 7 1.3 ID IA OH 9 8 0.7 WY 3.4 0.3 NE 1.3 IL IN WV VA 4.5 2.2 2.5West NV 0.5 0.5 KY UT MO 1.2 NC 0.8 1.1 CO KS 2.2 2.8 1.9 1.1 TN SC Southeast 1.8 CA 1.3 11.6 OK AR GA 1.3 1.0 AL 3.0 AZ MS 1.4 1.9 NM 0.6 Southwest 0.8 TX LA 1.3 FL 7.6 6.6West HI 0.3 Additional States (as marked on map) No. of establishments (%) 1 VT 2 NH 3 MA 4 RI Less than 3% 0.2 0.5 2.0 0.3 3% to less than 10% 10% to less than 20% 5 CT 6 NJ 7 DE 8 MD 9 DC 1.1 3.0 0.3 1.7 0.1 20% or more SOURCE: WWW.IBISWORLD.COM
  • 19. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 19Products & MarketsBusiness Locations Establishments vs. population 30 20 % 10 0 West Great Lakes Mid-Atlantic New England Plains Rocky Mountains Southeast Southwest Establishments Population SOURCE: WWW.IBISWORLD.COM
  • 20. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 20Competitive LandscapeMarket Share Concentration | Key Success Factors | Cost Structure BenchmarksBasis of Competition | Barriers to Entry | Industry GlobalizationMarket ShareConcentrationLevelConcentration in thisindustry is MediumKey Success Factors Having a wide and expanding Experienced work force product rangeIBISWorld identifies250 Key SuccessFactors for abusiness. The most Proximity to key markets Attractive product presentationimportant for thisindustry are: Ability to control stock on hand Having links with suppliersCost Structure ProfitBenchmarks
  • 21. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 21Competitive LandscapeCost StructureBenchmarkscontinued Purchases Wages Sector vs. Industry Costs Average Costs of all Industries in Industry Costs sector (2012) (2012) 100 3.5 2.7 Profit 9.5 11.1 Wages Purchases 80 Depreciation Marketing Rent & Utilities Other Percentage of revenue 60 72.0 70.0 40 20 1.5 0.8 3.0 3.9 1.6 3.4 7.1 9.9 0 SOURCE: WWW.IBISWORLD.COM
  • 22. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 22Competitive LandscapeCost Structure OtherBenchmarkscontinued DepreciationBasis of Competition Internal competitionLevel & TrendCompetition inthis industry isMedium and thetrend is Steady
  • 23. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 23Competitive LandscapeBasis of Competitioncontinued External competitionBarriers to Entry Barriers to Entry checklist LevelLevel & Trend Competition Medium Concentration MediumBarriers to Entry Life Cycle Stage Maturein this industry are Capital Intensity LowMedium and Steady Technology Change Low Regulation & Policy Light Industry Assistance Low SOURCE: WWW.IBISWORLD.COM
  • 24. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 24Competitive LandscapeBarriers to EntrycontinuedIndustryGlobalizationLevel & TrendGlobalization in thisindustry is Low andthe trend is Steady
  • 25. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 25Major CompaniesBest Buy Co. Inc. | RadioShack Corporation | Other CompaniesMajor players(Market share) RadioShack Corporation 5.6% 46.5% Other Best Buy Co. Inc. 47.9% SOURCE: WWW.IBISWORLD.COMPlayer PerformanceBest Buy Co. Inc.Market share: 47.9% Best Buy Co. Inc. (domestic segment) – financial performance Revenue Operating Income Year* ($ million) (% change) ($ million) (% change) 2007-08 33,328 7.4 1,999 5.2 2008-09 35,070 5.2 1,758 -12.1 2009-10 37,138 5.9 2,103 19.6 2010-11 37,070 -0.2 2,054 -2.3 2011-12 37,615 1.5 1,855 -9.7 2012-13** 38,721 2.9 1,786 -3.7 *Year-end February; **Estimate SOURCE: ANNUAL REPORT AND IBISWORLD
  • 26. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 26Major CompaniesPlayer Performancecontinued Financial performance Best Buy Co. Inc. – financial performance Revenue Operating Income Year* ($ million) (% change) ($ million) (% change) 2007-08 39,892 11.4 2,185 2.2 2008-09 44,737 12.1 2,014 -7.8 2009-10 49,243 10.1 2,368 17.6 2010-11 49,747 1.0 2,374 0.3 2011-12 50,705 1.9 1,085 -54.3 2012-13** 50,523 -0.4 983 -9.4 *Year-end February; **Estimate SOURCE: ANNUAL REPORT AND IBISWORLD
  • 27. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 27Major CompaniesPlayer PerformanceRadioShackCorporationMarket share: 5.6% Financial performance RadioShack Corporation – financial performance Revenue Net Income Year ($ million) (% change) ($ million) (% change) 2007 4,075.4 -11.0 236.8 222.6 2008 4,034.8 -1.0 189.4 -20.0 2009 4,073.6 1.0 205.2 8.3 2010 4,265.8 4.7 206.1 0.4 2011 4,378.0 2.6 72.2 -65.0 2012* 4,523.4 3.3 70.0 -3.0 *Estimate SOURCE: ANNUAL REPORT
  • 28. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 28Major CompaniesPlayer PerformancecontinuedOther Companies Circuit City Company Exited in 2009
  • 29. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 29Operating ConditionsCapital Intensity | Technology & Systems | Revenue VolatilityRegulation & Policy | Industry AssistanceCapital Intensity Capital intensity Capital units per labor unitLevel 0.5The level of capitalintensity is Low 0.4 0.3 0.2 0.1 0.0 Economy Retail Trade Consumer Electronics Stores Dotted line shows a high level of capital intensity SOURCE: WWW.IBISWORLD.COMTools of the Trade: Growth Strategies for Success New Age Economy Investment Economy Recreation, Personal Services, Information, Communications, Health and Education. Firms Mining, Finance and Real benefit from personal wealth so Estate. To increase revenue stable macroeconomic conditions firms need superior debt are imperative. Brand awareness management, a stable and niche labor skills are key to macroeconomic environment product differentiation. and a sound investment plan. Capital IntensiveLabor Intensive Consumer Electronics Stores Computer Stores Hobby & Toy Stores Traditional Service Economy TV & Appliance Wholesaling Old Economy Wholesale and Retail. Reliant Electronic Part & Agriculture and Manufacturing. on labor rather than capital to Equipment Wholesaling Traded goods can be produced sell goods. Functions cannot Camera Stores using cheap labor abroad. be outsourced therefore firms To expand firms must merge must use new technology or acquire others to exploit or improve staff training to economies of scale, or specialize increase revenue growth. in niche, high-value products. Change in Share of the Economy SOURCE: WWW.IBISWORLD.COM
  • 30. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 30Operating ConditionsCapital IntensitycontinuedTechnology& SystemsLevelThe level ofTechnologyChange is LowRevenue VolatilityLevelThe level ofVolatility is Medium
  • 31. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 31Operating ConditionsRevenue Volatilitycontinued A higher level of revenue Volatility vs Growth volatility implies greater industry risk. Volatility can 1000 Hazardous Rollercoaster negatively affect long-term Revenue volatility* (%) strategic decisions, such as 100 the time frame for capital investment. 10 When a firm makes poor Consumer Electronics investment decisions it may face underutilized 1 Stores capacity if demand suddenly falls, or capacity 0.1 Stagnant Blue Chip constraints if it rises –30 –10 10 30 50 70 quickly. Five year annualized revenue growth (%) * Axis is in logarithmic scale SOURCE: WWW.IBISWORLD.COMRegulation & PolicyLevel & TrendThe level ofRegulation isLight and thetrend is Steady
  • 32. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 32Operating ConditionsIndustry AssistanceLevel & TrendThe level ofIndustry Assistanceis Low and thetrend is Steady
  • 33. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 33Key StatisticsIndustry Data Industry Per Capita Dis- Revenue Value Added Establish- Wages Domestic posable Income ($m) ($m) ments Enterprises Employment Exports Imports ($m) Demand ($)2003 79,957.5 12,288.1 52,033 39,734 341,164 -- -- 9,571.1 N/A 30,4292004 84,869.9 12,683.8 52,970 40,448 374,238 -- -- 9,752.4 N/A 31,1842005 89,085.0 13,662.4 53,920 40,671 379,448 -- -- 10,440.1 N/A 31,3182006 92,724.8 14,198.2 53,208 39,844 395,646 -- -- 10,714.6 N/A 32,2772007 92,157.9 12,816.3 57,934 43,208 407,783 -- -- 9,242.6 N/A 32,7132008 87,454.6 11,321.2 55,434 41,927 402,053 -- -- 9,083.3 N/A 33,1972009 79,260.5 10,791.1 51,693 39,124 387,090 -- -- 8,648.8 N/A 32,1432010 78,330.1 11,211.3 50,886 38,777 385,824 -- -- 8,680.6 N/A 32,4462011 78,956.8 11,563.3 50,899 39,008 389,257 -- -- 8,878.7 N/A 32,5952012 80,851.7 11,791.4 51,191 39,354 392,768 -- -- 8,992.0 N/A 32,8562013 83,448.7 12,201.9 51,801 39,916 397,891 -- -- 9,245.5 N/A 33,2502014 86,914.3 12,554.3 52,215 40,259 400,700 -- -- 9,412.6 N/A 33,7822015 90,109.3 12,884.4 52,540 40,539 402,735 -- -- 9,573.1 N/A 34,4572016 92,174.3 13,174.9 52,775 40,754 403,984 -- -- 9,736.1 N/A 35,0782017 93,720.1 13,344.5 53,023 40,984 405,245 -- -- 9,802.2 N/A 35,884Sector Rank 13/63 13/63 16/63 15/63 11/63 N/A N/A 11/63 N/A N/AEconomy Rank 105/706 205/706 114/705 122/705 88/706 N/A N/A 164/706 N/A N/AAnnual Change Industry Establish- Domestic Per Capita Dis- Revenue Value Added ments Enterprises Employment Exports Imports Wages Demand posable Income (%) (%) (%) (%) (%) (%) (%) (%) (%) (%)2004 6.1 3.2 1.8 1.8 9.7 N/A N/A 1.9 N/A 2.52005 5.0 7.7 1.8 0.6 1.4 N/A N/A 7.1 N/A 0.42006 4.1 3.9 -1.3 -2.0 4.3 N/A N/A 2.6 N/A 3.12007 -0.6 -9.7 8.9 8.4 3.1 N/A N/A -13.7 N/A 1.42008 -5.1 -11.7 -4.3 -3.0 -1.4 N/A N/A -1.7 N/A 1.52009 -9.4 -4.7 -6.7 -6.7 -3.7 N/A N/A -4.8 N/A -3.22010 -1.2 3.9 -1.6 -0.9 -0.3 N/A N/A 0.4 N/A 0.92011 0.8 3.1 0.0 0.6 0.9 N/A N/A 2.3 N/A 0.52012 2.4 2.0 0.6 0.9 0.9 N/A N/A 1.3 N/A 0.82013 3.2 3.5 1.2 1.4 1.3 N/A N/A 2.8 N/A 1.22014 4.2 2.9 0.8 0.9 0.7 N/A N/A 1.8 N/A 1.62015 3.7 2.6 0.6 0.7 0.5 N/A N/A 1.7 N/A 2.02016 2.3 2.3 0.4 0.5 0.3 N/A N/A 1.7 N/A 1.82017 1.7 1.3 0.5 0.6 0.3 N/A N/A 0.7 N/A 2.3Sector Rank 27/63 38/63 34/63 27/63 39/63 N/A N/A 37/63 N/A N/AEconomy Rank 360/706 430/706 404/705 315/705 387/706 N/A N/A 420/706 N/A N/AKey Ratios Imports/ Revenue per Share of the IVA/Revenue Demand Exports/Revenue Employee Wages/Revenue Employees Average Wage Economy (%) (%) (%) ($’000) (%) per Est. ($) (%)2003 15.37 N/A N/A 234.37 11.97 6.56 28,054.25 0.102004 14.94 N/A N/A 226.78 11.49 7.07 26,059.35 0.102005 15.34 N/A N/A 234.78 11.72 7.04 27,513.91 0.112006 15.31 N/A N/A 234.36 11.56 7.44 27,081.28 0.112007 13.91 N/A N/A 226.00 10.03 7.04 22,665.49 0.102008 12.95 N/A N/A 217.52 10.39 7.25 22,592.30 0.092009 13.61 N/A N/A 204.76 10.91 7.49 22,343.12 0.082010 14.31 N/A N/A 203.02 11.08 7.58 22,498.86 0.092011 14.65 N/A N/A 202.84 11.25 7.65 22,809.35 0.092012 14.58 N/A N/A 205.85 11.12 7.67 22,893.92 0.092013 14.62 N/A N/A 209.73 11.08 7.68 23,236.26 0.092014 14.44 N/A N/A 216.91 10.83 7.67 23,490.39 0.092015 14.30 N/A N/A 223.74 10.62 7.67 23,770.22 0.092016 14.29 N/A N/A 228.16 10.56 7.65 24,100.21 0.092017 14.24 N/A N/A 231.27 10.46 7.64 24,188.33 N/ASector Rank 50/63 N/A N/A 27/63 44/63 19/63 33/63 13/63Economy Rank 636/706 N/A N/A 391/706 508/706 452/705 599/706 205/706Figures are inflation-adjusted 2012 dollars. Rank refers to 2012 data. SOURCE: WWW.IBISWORLD.COM
  • 34. WWW.IBISWORLD.COM Consumer Electronics Stores in the US September 2012 34Jargon & GlossaryIndustry Jargon BIG-BOX STORE A retail store that is differentiated by POINT OF SALE (POS) A system used at checkout in its sheer size and large range of products, including retail stores using computers and cash registers to electronics, household goods and other consumer capture transaction data at the time and place of sale. products. RADIO FREQUENCY IDENTIFICATION (RFID) A BLU-RAY An optical disc format designed to display technology that tracks products from the time they high-definition video and store large amounts of data. leave the assembly line to the time they leave the store BRICK-AND-MORTAR A store that has a physical by releasing continuous signals from a chip. presence and location, as opposed to an online retailer. SMARTPHONE A mobile phone that offers advanced COMPARABLE-STORE SALES A retail measure used to PC-like capabilities. assess the true performance of retail outlets by taking WHITE GOODS Large electrical goods used out the effect of new store openings and only looking at domestically, such as refrigerators and washing sales growth of existing stores. machines, typically white in color.IBISWorld Glossary BARRIERS TO ENTRY Barriers to entry can be High, INDUSTRY CONCENTRATION IBISWorld bases Medium or Low. High means new companies struggle to concentration on the top four firms. Concentration is enter an industry, while Low means it is easy for a firm identified as High, Medium or Low. High means the top to enter an industry. four players account for over 70% of revenue; Medium CAPITAL/LABOR INTENSITY An indicator of how much is 40 –70% of revenue; Low is less than 40%. capital is used in production as opposed to labor. Level is INDUSTRY REVENUE The total sales revenue of the stated as High, Medium or Low. High is a ratio of less industry, including sales (exclusive of excise and sales than $3 of wage costs for every $1 of depreciation; tax) of goods and services; plus transfers to other firms Medium is $3 – $8 of wage costs to $1 of depreciation; of the same business; plus subsidies on production; plus Low is greater than $8 of wage costs for every $1 of all other operating income from outside the firm (such depreciation. as commission income, repair and service income, and CONSTANT PRICES The dollar figures in the Key rent, leasing and hiring income); plus capital work done Statistics table, including forecasts, are adjusted for by rental or lease. Receipts from interest royalties, inflation using 2011 as the base year. This removes the dividends and the sale of fixed tangible assets are impact of changes in the purchasing power of the dollar, excluded. leaving only the ‘real’ growth or decline in industry INDUSTRY VALUE ADDED The market value of goods metrics. The inflation adjustments in IBISWorld’s and services produced by an industry minus the cost of reports are made using the US Bureau of Economic goods and services used in the production process, Analysis’ implicit GDP price deflator. which leaves the gross product of the industry (also DOMESTIC DEMAND The use of goods and services called its Value Added). within the US; the sum of imports and domestic INTERNATIONAL TRADE The level is determined by: production minus exports. Exports/Revenue: Low is 0 –5%; Medium is 5 –20%; EARNINGS BEFORE INTEREST AND TAX (EBIT) High is over 20%. Imports/Domestic Demand: Low is IBISWorld uses EBIT as an indicator of a company’s 0 –5%; Medium is 5 –35%; and High is over 35%. profitability. It is calculated as revenue minus expenses, LIFE CYCLE All industries go through periods of Growth, excluding tax and interest. Maturity and Decline. An average life cycle lasts 70 EMPLOYMENT The number of working proprietors, years. Maturity is the longest stage at 40 years with partners, permanent, part-time, temporary and casual Growth and Decline at 15 years each. employees, and managerial and executive employees. NON-EMPLOYING ESTABLISHMENT Businesses with ENTERPRISE A division that is separately managed and no paid employment and payroll are known as keeps management accounts. The most relevant non-employing establishments. These are mostly set-up measure of the number of firms in an industry. by self employed individuals. ESTABLISHMENT The smallest type of accounting unit VOLATILITY The level of volatility is determined by the within an Enterprise; usually consists of one or more percentage change in revenue over the past five years. locations in a state or territory of the country in which it Volatility levels: Very High is greater than ±20%; High operates. Volatility is between ±10% and ±20%; Moderate Volatility is between ±3% and ±10%; and Low Volatility EXPORTS The total sales and transfers of goods is less than ±3%. produced by an industry that are exported. WAGES The gross total wages and salaries of all IMPORTS The value of goods and services imported employees of the establishment. with the amount payable to non-residents.
  • 35. www.ibisworld.com | 1800-330-3772 | info @ibisworld.comIdentify high growth, emerging & shrinking marketsArm yourself with the latest industry intelligenceAssess competitive threats from existing & new entrantsBenchmark your performance against the competitionMake speedy market-ready, profit-maximizing decisions Who is IBISWorld? We are strategists, analysts, researchers, and marketers. We provide answers to information-hungry, time-poor businesses. Our goal is to provide real world answers that matter to your business in our 700 US industry reports. When tough strategic, budget, sales and marketing decisions need to be made, our suite of Industry and Risk intelligence products give you deeply-researched answers quickly. IBISWorld Membership IBISWorld offers tailored membership packages to meet your needs.DisclaimerThis product has been supplied by IBISWorld Inc. (‘IBISWorld’) solely for use of, or reliance upon, the data or information contained herein. Copyright inby its authorized licenses strictly in accordance with their license agreements this publication is owned by IBISWorld Inc. The publication is sold on thewith IBISWorld. IBISWorld makes no representation to any other person basis that the purchaser agrees not to copy the material contained within itwith regard to the completeness or accuracy of the data or information for other than the purchasers own purposes. In the event that the purchasercontained herein, and it accepts no responsibility and disclaims all liability uses or quotes from the material in this publication – in papers, reports, or(save for liability which cannot be lawfully disclaimed) for loss or damage opinions prepared for any other person – it is agreed that it will be sourcedwhatsoever suffered or incurred by any other person resulting from the use to: IBISWorld Inc. Copyright 2012 IBISWorld Inc

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