Consumer electronics market still falling

The Consumer Electronics Market in Great Britain fell by -5.6% in value comparing June 2012 with June 2011, claims GfK Retail and Technology UK. Whilst this is disappointing, the year on year value fall is -14%, so this small drop can be seen as a considerable lessening of decline.

This uplift in the Total CE market was mainly driven by the performance of the TV segment, reducing its market value decline from -9.1% in May to -3.3% in June, compared to the equivalent months in 2011. This more positive situation comes largely from the performance of screen sizes 40″ and above. Euro Football, run up to Olympics and consumers replacing with a bigger size than previously owned, are all driving factors.

Other areas, including portable radios and set top boxes, showed growth compared to last year. In part, this is due to the impact of the digital switchover, especially for the London/Kent area.

Despite the overall radio market in decline, the Digital DAB and/or internet radio are stable in volume and show a strong growth in value by 13.5%.

Hardware markets love more content, so many more Olympic Channels (TV and Radio), and more catch up capability with Youview should help Digital Radio, TV and related markets in July. Having seen a big impact because of the digital switchover for the set top boxes and TVs, these next events should drive additional sales for Consumer Electronics. Nevertheless, it has to be kept in mind that any increase in sales could just be brought forward, rather than benefiting the long term growth in those areas.