Consumer Electronics are experiencing an eCommerce boom. According to Statista, the U.S. Consumer Electronics eCommerce market is estimated to increase by more than 20 percent in the next 5 years. This could be a chance for eCommerce marketers to cash in on the growing Consumer Electronics market as long as they use the right strategy.
Here’s a look at the trends influencing Consumer Electronics eCommerce shopping, along with the secrets to increasing profitability for appliance brands.
Trends impacting Consumer Electronics and appliance brands
Here are a few eCommerce marketing trends and challenges to pay attention to if you want to tap into the growing demand for Consumer Electronics.
Inflation is affecting Consumer Electronics pricing
MikMak’s report Inflation and Commerce Marketing: How to Reduce Costs and Drive Profitability found that inflation influences Consumer Electronics in a few key ways.
- Inflation is expected to remain soft in Europe’s Consumer Electronics sector
- According to Statista, online prices for Consumer Electronics fell in 2020. Since then, steady demand and low interest rates may have blunted inflation in the sector. The same Statista report expects online prices for Consumer Electronics to tick up by a mere 0.82 percent by 2025.
- Consumer Electronics prices remain low in the U.S.
- According to the U.S. Bureau of Labor Statistics, prices for appliances in the U.S. are 14 percent lower this year than in 1997. The same study shows average inflation within the sector has slid into negative numbers at times throughout the last two decades, and the inflation rate will be negative in 2024.
- According to the U.S. Bureau of Labor Statistics, prices for appliances in the U.S. are 14 percent lower this year than in 1997. The same study shows average inflation within the sector has slid into negative numbers at times throughout the last two decades, and the inflation rate will be negative in 2024.
Appliance brands are struggling to deliver social eCommerce consistency
To draw in the most sales possible, brands must hit consumers with consistent product messages across their omnichannel experiences. This is becoming a high hurdle for appliance brands to clear. A ChannelAdvisor study found that 65 percent of Consumer Electronics brand leaders are having difficulty delivering consistent product information across their platforms.
However, those Consumer Electronics leaders still plan to pour more money into social eCommerce platforms. Here’s what percentage of these brands made plans to increase social ad spending, and on which platforms, last year:
Demand for appliances varies by region
Especially across Europe, consumer demand for Consumer Electronics and appliances changes based on the location. Here are a few trends noted in a Modor Intelligence report:
- Germany is the region’s leader in market share for the Home Appliances category
- The demand for premium appliances is increasing in Western Europe
- Demand for smart appliances is growing across the EU. The study estimates smart households will jump tenfold in the coming years
Supply chain problems still plague the Consumer Electronics space. According to ChannelAdvisor, 95 percent of Consumer Electronics brand leaders say they’ve run into supply chain or production challenges recently. The same report found 66 percent of Consumer Electronics leaders’ brands are overstocked.
How to increase eCommerce marketing profitability for Consumer Electronics
Although the demand for Consumer Electronics is climbing, not every eCommerce marketer is drawing in shoppers at the same rate. Here are a few ways to maximize marketing profitability for Consumer Electronics brands.
1. Ditch traditional media mix modeling
These approaches are time-consuming and often don’t reveal enough information to tell you how well different marketing combinations are performing to react in a fast-paced eCommerce environment
2. Let real-time insights inform your decisions
Real-time shopping data will show you how channels, retailers, influencers, and shopping behaviors are affecting sales. That means your marketing team can identify ROI and adjust to maximize profitability before those patterns change.
3. Examine your consumers’ shopping carts
Shopping cart data will show you how well your product pricing and placement strategies are paying off. It also reveals how your brand’s performance compares to competitors in the Consumer Electronics space.
4. Adjust strategies based on trends and your marketing campaign’s performance
Track results, identify what’s working, and put money into the strategies that are driving results.
Improve Consumer Electronics marketing in the current economy
By paying attention to these Consumer Electronics trends, you can start cashing in on the surge in Consumer Electronics demand. If you want to maximize ROI, we have more insights you’ll want to see. Read our guide, Inflation and Commerce Marketing Report 2024, to learn how to draw in more shoppers in the current economic climate.
