Whilst customers flocked online during the pandemic, the consumer electronics industry, like many others, saw a boom in sales hitting $539.46 billion globally in 2022. However, with the current economic downturn causing consumers to be more careful with discretionary spend, consumer electronics brands are under pressure to adapt their business strategies and re-imagine growth to help weather the storm.
We teamed up with CensusWide at the end of last year to see what changes electronics brands were making to combat the storm and leverage opportunities. We share some of the key takeaways from the report and what brands can do to remain profitable.
Electronic sellers are diversifying their sales channels
Despite the obvious challenges businesses are facing, many consumer electronic brands are still looking for ways to maintain growth and maximise sales. 55% of respondents said they are looking to make changes to their channel mix and diversify their sales, with 45% looking to expand their business into 5 or more international territories. Expansion abroad can help brands get in front of new prospects and open their business up to different opportunities.
Brands are seeking more DTC opportunities
Direct-to-consumer selling models continue to gain popularity as brands consider different methods of shifting their products. 71% of respondents who were interested in making changes to their channel mix expressed a desire to expand their direct-to-consumer sales. The D2C approach provides brands with control over product information, pricing, and positioning, as well as a better understanding of their customers’ tastes and preferences. A solid marketplace strategy can be the driving force to business success.
Retail media will continue to play a key role in the e-commerce journey
With retail media becoming increasingly popular within e-commerce, retailers and brands have new opportunities to meet consumers near the end of their online journey: the point of purchase. Results from the survey showed that 74% of consumer electronics brands were already using retail media to increase visibility on marketplace channels. An effective retail media strategy will help brands stand out in a highly competitive market whilst helping to drive awareness across different platforms.
Having excess inventory isn’t always a negative
Results from the survey showed that practically all (95%) of the brands questioned had struggled with excess inventory at some point however, 40.5% indicated that they were more concerned about understocking than overstocking. With multiple ways to offload excess inventory including product bundling, using comparison shopping engines or upping your paid search strategy, brands should focus on experimenting with different methods based on their business goals.
ChannelAdvisor helps plan your growth strategy
Despite the challenges, with the right tools and a tailored channel strategy, there is still potential for brands to come out on top in 2023. ChannelAdvisor helps brands and retailers navigate this changing landscape and connect with more consumers by giving them the ability to streamline operations, expand to new channels and grow sales. Book a demo with our sales team and download your copy of the report here.