Spending on Accessories Will Increase
As the economy slowly recovers, dealers should be aware of hidden opportunities. The accessories market, which historically was unheralded and underestimated before showing its power as a margin maker in recent years, is a major revenue contributor to the consumer electronics industry.
While the average wholesale unit prices for accessories ($25) are slight compared to products such as TV sets ($587) and PCs ($481), margins on accessories are higher and their relative affordability helps bolster the bottom line for many retailers.
Accessories are a unique entity in the sense that their viability extends to prosperous and challenging times, economically speaking. Accessory sales expand with the increased sales of the CE products they complement. Conversely, during more difficult times, as we have witnessed recently, consumers postponing product purchases-even big ticket items-tend to focus on more cost-efficient alternatives, a scenario in which accessories present an ideal solution. CEA's new study, Accessories Purchasing in the 21st Century provides an opportunity for better understanding consumer behavior and motivations as they relate to the sales of accessories. Key findings in the study include: