Learning From 2010
For consumer technology retailers and vendors, 2010 was one long, painful battle for market share. Waves of price and margin erosion roiled the industry as Best Buy, Amazon.com and the newly CE savvy Walmart competed against each other and expanding regionals, such as hhgregg, Ultimate Electronics and P.C. Richard.
Full-year 2010 U.S. industry unit shipments are expected to increase about 3%, compared to the previous expectation of 5%. Manufacturers' total 2010 TV sales to dealers were down 19% through September, according to CEA. In the back half of 2010, video vendors slashed pricing and cranked out promotions to keep factory lines moving.
Taking share was the name of the game. "That's all you can do in this environment," said Michael Perlman, president and CEO of BrandsMart USA in South Florida. BrandsMart USA opened in 1978 and weathered multiple recessions but, "They were nothing like this," Perlman said.