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The Appliances & Home Electronics Industry
Beaten only by the clothing and accessories category, appliances and electronics are the second most popular online sales category in the United States. The appliance industry is a multi-billion dollar market and is forecasted to reach a value of $200+ billion by 2020. With 40% of consumers in this category being between 18-24 years old, it has excellent long term growth prospects.
Appliances and home electronics are dominated by some of the biggest brands in the world including the Chinese giant Haier, Electrolux from Sweden, South Korea’s Samsung and the US mammoth Whirlpool. Interestingly, a fifth of these brands credits 50% of their sales to online purchasing channels, making it a fantastic potential growth market.
The home appliance industry is split into two areas: major domestic appliances and small domestic appliances. Major items include fridges, freezers, washing machines, and dishwashers – often referred to as white goods. Small household appliances refer to things generally used on countertops and are semi-portable, these include devices such as toasters, blenders, and microwave ovens.
The future of home electronics rests in the hands of Wi-Fi enabled smart home devices that connect to the Internet of Things, this connects everyday items to the internet and allows them to send and receive data. Accessories range from a smart-thermostat which enables you to turn the heating on while driving home, to security devices with real-time feeds that send you notifications if someone alerts a sensor in your home. The market for these devices is set to explode with an estimated 320 million smart units to be sold by 2020, nearly double the number expected for 2019. On top of that, the market will have a forecasted value of $53 billion by 2022, making it a fascinating category for e-commerce.