In a new series run in conjunction with Appliance Retailer magazine, Current.com.au will be speaking to the industry leaders, big brands and well-known identities that have helped shape the electrical retail industry in 2013.
In the first piece in this new series, GfK Retail and Technology ANZ managing director of Consumer Choices, Gary Lamb, gives his insights on the growth categories and big trends that are shaping the industry this year.
Current.com.au: How has the first half of 2013 been for the industry?
Gary Lamb: Looking at the industry as a whole, consumer spending is still down on last year, but at least the rate of decline is slowing. There are even a few bright spots, such as Vacs, Media Tablets, and Smartphones; and it’s reassuring to see TV average prices begin to increase again.
What are your predictions for the second half of the year?
Well, interest rates and unemployment figures remain low and stable, and this appears to be reflected in relatively strong consumer confidence, but there’s a federal election on its way, so that is almost certain to have a bearing on the rate at which the electricals markets recover. However, there appears to be enough evidence in recent trends to suggest that the gradual improvement will continue.
What opportunities do you see for the electrical retailing industry?
Although I don’t think we’ve seen the end of the decline in TV market volumes, there are now about 5 million flat panel TVs in the establishment base that are 5-or-more years old. That provides an excellent opportunity to bring those people back into the market, to trade them up to the better features, higher-definition pictures, and larger screen sizes that are now available. It shouldn’t be too difficult to do when you consider that the average price of a flat-panel TV six years ago was $1,000 more than it is today.
It’s also likely that we’ll see another up-lift in the growth of Smartphones in the second half of the year, as the high volumes of the 2-year contracts that were taken out during the surge in 2011 come to an end, and significant new products enter the market.
What threats are currently present in the industry?
One of the biggest threats comes from the price erosion that is currently evident in the Major Domestic Appliance sector. With the exception of Refrigeration, average prices in the category have declined by around 6-to-8 per cent over the last couple of years. This is really significant in Whitegoods, because, unlike the Digital markets, it’s not possible to generate the additional volume needed to make-up for the lower prices.
What is your favourite product of 2013 so far?
As usual, I need to retain my independence here, so I’m going to choose my favourite product of 2013 from outside the electricals industry. This year, it’s an easy choice for me: I’m going with the new VW Golf Mk VII.
If you would like to take part in our Influencers series, contact editorial@current.com.au.