Description
The consumer electronics industry manufactures and distributes everything from telephones, stereo components, televisions, alarm clocks, and calculators to digital cameras, video cameras, VCRs, and DVD, MP3, laptop PC are also now part of the industry
A BUSINESS MODEL
Presented To: Mrs. Sangeeta Saraf
Presented By:
Anshul Agarwal-01
Ashish Bansal-03
Vikram Bothra-0
!umar Vi"ek-1
#ahul #athi-$1
%aura" Surana-30
OUTLINE
INTERNATIONAL MARKET
OVERVIEW
?
The consumer electronics industry manufactures and
distributes everything from telephones, stereo
components, televisions, alarm clocks, and calculators to
digital cameras, video cameras, VCRs, and DVD, MP3,
laptop PC are also no part of the industry!
?
"n #$$%, in the &!'! alone, consumers spent more than
()% billion on consumer electronics products, * percent
more than in #$$+!
HOW THE INDUSTRY BREAKS DOWN
?
The largest are multinational conglomerates with
more than 1! em"lo#ees$
?
The smallest o%ten ha&e onl# one o'ce with %ewer
than ( em"lo#ees %ocuse) on one "ro)uct$
?
In the mi))le are manu%acturers that o*er a
range o% "ro)ucts within a certain categor#! such
as s"ea+ers an) au)io accessories$
?
In)ustr# o,ser&ers usuall# ,rea+ )own the mar+et
,# "ro)uct categor# rather than com"an# si-e$
Source: CEA
?
Consumer durables are items that "ro&i)e a .ow o% ser&ices to a consumer o&er a
"erio) o% time$ E/am"les inclu)e new cars! househol) a""liances! au)io0&isual
e1ui"ment! %urniture etc$ The real le&el o% s"en)ing on )ura,les has surge) in the
last eight #ears$
SOME OBSER2ATIONS
?
,mong the e-planations are.
?
/alling prices for many durable products 0 arising from rapid
advances in production technology and the effects
of globali1ation hich means that e can no import many of
these durables more cheaply from overseas
?
2o interest rates hich have encouraged people to spend more
on 3big ticket items4 0 there has been a surge in demand for
consumer credit
?
'trong consumer confidence and borroing levels! The demand
for consumer durables is more income elastic than for non5
durables hich are usually staple items in people6s monthly
budget!
GLOBAL PLAYERS
Major Players
Top 1 Major Players! "y #$ Re%e&'e
Ra&( )o*pa&y Re%e&'e +,M- 1.Year )/a&0e +1- E*ployees
7 Ge&eral Ele23r42 )o5 7+*,$78 0#!# 3$),$$$
# S4e*e&s AG 8$,9)$ 7) +97,$$$
3 Ma3s's/43a *7,#8* 73!$ 33+,)%#
+ Sa*s'&0 Ele23ro&42s )o5! L365 )*,#%$ ++!# 7#3,$$$
% So&y )orp5 99,87# 0)!# 7%7,+$$
9 M42roso73 )orp5 38,)** *!$ 97,$$$
) Royal P/4l4ps Ele23ro&42s NV 3%,8)# 07#!+ #37,797
* S/arp )orp5 #3,979 7$!% +9,)%7
8 Sa&yo L365 #+,7)+ 07!+ 89,$#3
7$ LG Ele23ro&42s I&25 #3,%+#: 38!+: 99,97+:
8#9 740'res5
So'r2es: Hoo%er;s< We3=ee3 a&alys4s5
KEY
FINDINGS
Key =4&64&0s
?
Asia03aci4c region is the most lucrati&e area %or the consumer electronics
in)ustr#! as most o% the mar+ets are still unta""e)$
?
M35 "la#ers continue to )ri&e the au)io mar+et worl)wi)e$
?
7i08i networ+ing is e/"ecte) to ,ecome a +e# ena,ler %or the )eli&er# an)
re)istri,ution o% content in homes! "articularl# %or retail consumer electronics
har)ware$
?
Mo,ile camera "hone mar+et has emerge) as the single largest mar+et %or
image sensors! sur"assing the entire consumer electronics segment!
inclu)ing )igital still cameras worl)wi)e$
?
The strongest growth in consumer electronics segment is e/"ecte) to come
%rom 9hina ,# :1! as the )eman) %or consumer electronics is rising with
the ra"i) "ace o% economic )e&elo"ment an) low cost consumer electronics
manu%acturing$
?
On the ,ac+ o% this strong )eman)! 9hina will ,ecome the secon) largest
mar+et %or consumer electronics! a%ter US$
SOME KEY =INDINGS
)ONSUMER APPLIAN)ES > ELE)TRONI)S
RETAILING IN )HINA
?
The orld6s fastest groing large economy, ith humungus
foreign investments
?
;igh Competitive market, margins very tight and, until recently,
the available market as shrinking!
?
Presence of Rural rebate scheme for reduced price goods to rural
consumers has made the available market a lot bigger though,
over the past fe years!
?
period sho sales of household
electric appliances gre by 7)!*? over the same period in #$$*!
*CNY : Chinese new
year2009
URBAN 2S RURAL0 9;INA
9;INA DEMOmale 1?:!@(!AA(B%emale
1
!5!5C1D
?
15-64 years: E1$C= >male
?C1!(15!5E@B%emale ?A(!:!5D
?
65 years and over: @= >male
(!A
!?@B%emale ((!?E:!AA1D >
est$D
9EAD stu)# has %oun) that
women are more com%orta,le with technolog# than e&er ,e%ore!
are hea&# users o% 9E "ro)ucts! an) ha&e a maFor in.uence on
technolog# "urchases %or the househol)$
?
8emale customers are )istinct in their ,elie%s a,out technolog#! in
what the# )esire %rom consumer electronics! an) in the wa# that
the# sho" %or these "ro)ucts! the stu)# in)icate)$
?
7omen are less enamoure) o% ga)gets an) technolog# %or its own
sa+e$
?
But the 9EA stu)# in)icate) that women are more o"en to a)&ice!
an) when sho""ing the# %ocus on "orta,ilit#! %unctionalit#!
relia,ilit# an) sim"licit#$
TO3 ( EMER
The consumer electronics industry manufactures and distributes everything from telephones, stereo components, televisions, alarm clocks, and calculators to digital cameras, video cameras, VCRs, and DVD, MP3, laptop PC are also now part of the industry
A BUSINESS MODEL
Presented To: Mrs. Sangeeta Saraf
Presented By:
Anshul Agarwal-01
Ashish Bansal-03
Vikram Bothra-0
!umar Vi"ek-1
#ahul #athi-$1
%aura" Surana-30
OUTLINE
INTERNATIONAL MARKET
OVERVIEW
?
The consumer electronics industry manufactures and
distributes everything from telephones, stereo
components, televisions, alarm clocks, and calculators to
digital cameras, video cameras, VCRs, and DVD, MP3,
laptop PC are also no part of the industry!
?
"n #$$%, in the &!'! alone, consumers spent more than
()% billion on consumer electronics products, * percent
more than in #$$+!
HOW THE INDUSTRY BREAKS DOWN
?
The largest are multinational conglomerates with
more than 1! em"lo#ees$
?
The smallest o%ten ha&e onl# one o'ce with %ewer
than ( em"lo#ees %ocuse) on one "ro)uct$
?
In the mi))le are manu%acturers that o*er a
range o% "ro)ucts within a certain categor#! such
as s"ea+ers an) au)io accessories$
?
In)ustr# o,ser&ers usuall# ,rea+ )own the mar+et
,# "ro)uct categor# rather than com"an# si-e$
Source: CEA
?
Consumer durables are items that "ro&i)e a .ow o% ser&ices to a consumer o&er a
"erio) o% time$ E/am"les inclu)e new cars! househol) a""liances! au)io0&isual
e1ui"ment! %urniture etc$ The real le&el o% s"en)ing on )ura,les has surge) in the
last eight #ears$
SOME OBSER2ATIONS
?
,mong the e-planations are.
?
/alling prices for many durable products 0 arising from rapid
advances in production technology and the effects
of globali1ation hich means that e can no import many of
these durables more cheaply from overseas
?
2o interest rates hich have encouraged people to spend more
on 3big ticket items4 0 there has been a surge in demand for
consumer credit
?
'trong consumer confidence and borroing levels! The demand
for consumer durables is more income elastic than for non5
durables hich are usually staple items in people6s monthly
budget!
GLOBAL PLAYERS
Major Players
Top 1 Major Players! "y #$ Re%e&'e
Ra&( )o*pa&y Re%e&'e +,M- 1.Year )/a&0e +1- E*ployees
7 Ge&eral Ele23r42 )o5 7+*,$78 0#!# 3$),$$$
# S4e*e&s AG 8$,9)$ 7) +97,$$$
3 Ma3s's/43a *7,#8* 73!$ 33+,)%#
+ Sa*s'&0 Ele23ro&42s )o5! L365 )*,#%$ ++!# 7#3,$$$
% So&y )orp5 99,87# 0)!# 7%7,+$$
9 M42roso73 )orp5 38,)** *!$ 97,$$$
) Royal P/4l4ps Ele23ro&42s NV 3%,8)# 07#!+ #37,797
* S/arp )orp5 #3,979 7$!% +9,)%7
8 Sa&yo L365 #+,7)+ 07!+ 89,$#3
7$ LG Ele23ro&42s I&25 #3,%+#: 38!+: 99,97+:
8#9 740'res5
So'r2es: Hoo%er;s< We3=ee3 a&alys4s5
KEY
FINDINGS
Key =4&64&0s
?
Asia03aci4c region is the most lucrati&e area %or the consumer electronics
in)ustr#! as most o% the mar+ets are still unta""e)$
?
M35 "la#ers continue to )ri&e the au)io mar+et worl)wi)e$
?
7i08i networ+ing is e/"ecte) to ,ecome a +e# ena,ler %or the )eli&er# an)
re)istri,ution o% content in homes! "articularl# %or retail consumer electronics
har)ware$
?
Mo,ile camera "hone mar+et has emerge) as the single largest mar+et %or
image sensors! sur"assing the entire consumer electronics segment!
inclu)ing )igital still cameras worl)wi)e$
?
The strongest growth in consumer electronics segment is e/"ecte) to come
%rom 9hina ,# :1! as the )eman) %or consumer electronics is rising with
the ra"i) "ace o% economic )e&elo"ment an) low cost consumer electronics
manu%acturing$
?
On the ,ac+ o% this strong )eman)! 9hina will ,ecome the secon) largest
mar+et %or consumer electronics! a%ter US$
SOME KEY =INDINGS
)ONSUMER APPLIAN)ES > ELE)TRONI)S
RETAILING IN )HINA
?
The orld6s fastest groing large economy, ith humungus
foreign investments
?
;igh Competitive market, margins very tight and, until recently,
the available market as shrinking!
?
Presence of Rural rebate scheme for reduced price goods to rural
consumers has made the available market a lot bigger though,
over the past fe years!
?
period sho sales of household
electric appliances gre by 7)!*? over the same period in #$$*!
*CNY : Chinese new
year2009
URBAN 2S RURAL0 9;INA
9;INA DEMOmale 1?:!@(!AA(B%emale
1
!5!5C1D ?
15-64 years: E1$C= >male
?C1!(15!5E@B%emale ?A(!:!5D
?
65 years and over: @= >male
(!A
!?@B%emale ((!?E:!AA1D > est$D9EAD stu)# has %oun) that
women are more com%orta,le with technolog# than e&er ,e%ore!
are hea&# users o% 9E "ro)ucts! an) ha&e a maFor in.uence on
technolog# "urchases %or the househol)$
?
8emale customers are )istinct in their ,elie%s a,out technolog#! in
what the# )esire %rom consumer electronics! an) in the wa# that
the# sho" %or these "ro)ucts! the stu)# in)icate)$
?
7omen are less enamoure) o% ga)gets an) technolog# %or its own
sa+e$
?
But the 9EA stu)# in)icate) that women are more o"en to a)&ice!
an) when sho""ing the# %ocus on "orta,ilit#! %unctionalit#!
relia,ilit# an) sim"licit#$
TO3 ( EMER