Major players in the consumer electronics market are Alibaba, Amazon, JD.com, eBay, Shopify, Rakuten, Walmart, Newegg, Target, and Flipkart.
The Global Consumer Electronics e-Commerce Market is expected to grow from USD 282.6 billion in 2019 to about USD 373.6 billion in 2020 as the market initially experienced a surge due to purchase of electronic products that support work from home. The market is expected to stabilize and reach USD 548.4 billion at a CAGR of 18% through 2023.
The consumer electronics market consists of sales of electronic goods that include video products such as television, navigation products, digital cameras and accessories, digital camcorders and accessories, e-Readers, DVD and Blu-ray players, etc, and audio products such as MP3 players and accessories, home theater audio systems and components, musical instruments and mobile electronics, etc. The market consists of revenues generated by the establishments by the sales of these video and audio electronics. Ecommerce refers to businesses, companies, and individuals selling goods or services electronically.
Augmented reality (AR) technology enhances online shopping experience. AR technology is a solution for online shopper’s ‘uncertainity’ about a product that they wish to purchase online. AR solutions allow customers to visualize products in real time, from the comfort of their homes. The 3D visualizations via AR provide opportunity for customers to see how products could look in their space before they commit to purchase. They can try different options and choose the best product. It reduces the inconvenience due to the return/exchange of products, and saves time and cost of returns. AR helps online retailers significantly reduce returns by providing ‘try-before-you-buy’ digital experience.
The consumer electronics market covered in this market is segmented by product into video products; audio products; others and by business model: business to business (B2B); business to consumer (B2C).
The lack of an integrated end-to-end logistics platform for delivery of electronics purchased online is a key factor challenging the growth of this market. This is because supply is more important that demand, and in developing countries, there is a significant logistical barrier. For instance, in India, there are 6000 cities and 600,000 villages that acoount for nealy 70% of the country’s population. The retail e-commerce can deliver to only an estimated 200 cities in India which means for a major proportion of population these services are not available. The logistics performance differs significantly in each country. The differences include local logistics infrastructure, delivery choices, mode of delivery, and warehousing. These poise challenges for businesses keen to expand across borders. Additionally, catering services for same-day and next-day deliveries, along with managing change requests for time slots simultaneously, is another major ongoing logistical challenge for retailers. These factors, are therefore hindering the growth of consumer electronics e-commerce market.
Amazon.com Inc. signed pacts with the Future Group to sell products from India’s second largest brick-and-mortar retailer on its online marketplace. Amazon will become the authorized online sales channel for Future Retail Ltd.’s stores, which sell everything from groceries to cosmetics and apparel, according to an exchange filing Monday. The e-commerce giant will also have a tie-up with Future Consumer Ltd. that makes consumer goods like packaged snacks and household cleaners.
Consumers are shifting from offline to online shopping, and this factor is the key driving factor of consumer electronics e-commerce market. Globally, nearly 53% of the global population (more than 4 billion people) is connected to the internet, and nearly all of them (92.6%) go online using their mobile devices. Internet connectivity has presented an opportunity of hassle-free shopping-anytime, anywhere. The internet accessibility, mobile technology and digital innovations are changing consumer’s shopping experiences. With the building customers’ trust in buying high-value products including electronics on the Internet, the number of online shoppers is skyrocketing. Therefore, with the increased penetration of online shopping in consumers’ lives, the value of electronics e-commerce market is expected to only rise but not slowdown.
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Ankur Gupta, Head Marketing & Communications