, pub-6370463716499017, DIRECT, f08c47fec0942fa0 AlfaBloggers Best Bloggers Team Of Asia : Consumer Electronics Recession

Thursday 10 January 2013

Consumer Electronics Recession

Walmart Defies 

Consumer Electronics are experiencing an uncharacteristic moment in the dog house as shoppers eschew hardware and entertainment devices, opting instead for mobile practicality. This trend is hitting retailers hard as the most popular products are easily obtained direct from manufacturers, service providers or less expensive online outlets. There is of course an exception — Walmart, it seems, is defying the CE recession.

We’re hearing a lot about new technology this week. With International CES underway in Las Vegas there’s plenty to marvel at, but precious little to drive shoppers into stores. CES is hot, but CE sales are not. Best Buy, GameStop, hhgregg, are all suffering from CE sales doldrums this holiday season.

But discounter Walmart is bucking the trend. According to this research note from Janney Capital Markets David Strasser:

We had a chance to learn more about WMTs CE business at CES, and we are impressed with what WMT is doing and where the company is going in this critical category. Our conversations with manufactures lead us to believe that WMT had a solid or a better holiday season in CE. We believe this holiday will show WMT is gaining share and traction in CE.

It makes sense as trends are decidedly in the discounter’s favor. Products are fully commoditized as HDTVs, Blu-ray players, sound bars and computers are well into their technology life cycles. Shoppers are making decisions based on price and Walmart has long been the low-price leader.

Future trends could also benefit Walmart as pre-paid smartphone sales heat up and contract based plans get a boost from lower-priced handsets. Even Apple is rumored to be developing a lower-priced iPhone. “The next phase of smart-phone adoption/penetration will likely come from the low end consumer which is WMT’s sweet spot – allowing them to grow the wireless business dramatically over the next few years,” wrote Strasser.

Target too, stands to benefit from these trends in the next couple of years. Today, Target announced it was extending holiday price matching through the year, promising to match competitors advertised prices on products found both in stores and online. Its move that could help establish price parity between big box retailers and

But Walmart is even better positioned than Target to gain share in consumer electronics. It’s willingness to accept compressed margins across categories make it particularly adept at navigating the razor thin margins in CE whereas Target has been less reluctant to sacrifice margin for sales and share.

None of this bodes well for the specialists and Best Buy’s future remains grim, fraught with problems both of its own making and those of the industry at large. The CE industry is cyclical and eventually new technology will reach the market at compelling price points to keep retailers in business. But for now, Walmart looks to be sitting pretty.

Stranded Motorist Photos Are Metaphor for Hurricanes, Recession and Loneliness
If you're ever broken down on the side of an American highway and a woman with a light meter around her neck stops her car and approaches you, don't be afraid. She's not there to rob or hurt you. It's just Amy Stein, and all she wants to do is take ...
See all stories on this topic »
France is in a mild recession, says central bank
The latest estimate from the Bank of France differs from data from the national statistics office which suggests that France has just averted recession this year by showing marginal intermittent growth. Together the sets of data suggest that the ...
See all stories on this topic »
Study: Degrees a hard-times buffer
Boston Globe
It was a defining image of the Great Recession: floundering college grads stuck back home, living in mom and dad's basement. But while rooted in some truth, that picture doesn't show fully how the prolonged downturn affected people in their early 20s, ...
See all stories on this topic »
Europe's recession puts Italian women's workplace gains on ice
Christian Science Monitor
Later, she was hired as a teacher of Italian as a second language, but the recession hit, and her hours were cut back. When she had her second child, her position wasn't extended, again leaving her without maternity benefits. Now, in her early 30s, she ...
See all stories on this topic »
Fewer Americans saw docs during 'Great Recession' (blog)
Americans made fewer trips to their doctors' offices during the Great Recession than they did earlier in the decade, according to new research. "These are not dramatic drops, but in our healthcare system we're used to our numbers going up... So just ...
See all stories on this topic »
Orphanides Says ECB Should Cut Rates to Fight Worst Recession
Former European Central Bank Governing Council member Athanasios Orphanides said ECB officials should cut interest rates today as the euro area battles the worst recession in its history. “The ECB should cut rates,” Orphanides said in a telephone ...
See all stories on this topic »
Gaithersburg Business Property Vacancy Rates Lowest Since Recession
Gaithersburg's commercial real estate vacancy rates reached a post-recession low in Q4 2012, the city's Director of Economic Development Tom Lonergan said at Monday's mayor and City Council meeting. Of the 163 class A and B office spaces housed ...
See all stories on this topic »

Walmart Defies Consumer Electronics Recession
Consumer Electronics are experiencing an uncharacteristic moment in the dog house as shoppers eschew hardware and entertainment devices, opting instead for mobile practicality. This trend is hitting retailers hard as the most popular products are ...
See all stories on this topic »
Graduating from recession?
ChicagoNow (blog)
The annual Harvard Crimson survey of seniors showed in 2011 that just under two-thirds of students planning to work after graduation had a job lined up -- up from 58% the year before, but still down from 73% in 2007, just as the economy started to dip.
See all stories on this topic »
Young college grads fared better than peers in recession (blog)
“Having a college degree really helped individuals weather the recession at much better rates … than for those with lesser credentials,” Diana Elliott, research manager with the Pew Economic Mobility Project, said in a conference call with journalists ...
See all stories on this topic »

No comments:

Post a Comment

Note: only a member of this blog may post a comment.