London, United Kingdom (PRWEB) December 27, 2012
Consumers love their electronic gadgets. Demand in the UK for consumer electronics, such as flat-panel TVs, MP3 players and high-definition DVDs, is growing as a result of falling selling prices and the release of new and enhanced products. However, the steep fall in prices has negatively impacted the value of sales. Also, more often than not consumer electronics are being manufactured in foreign countries where labour costs are low and supply chains are deep.
The UK Consumer Electronics Manufacturing industry is expected to generate revenue of £2.17 billion in 2012-13, down 1.2% compared with 2011-12. According to IBISWorld industry analyst Nigel Fitzpatrick, “the industry is highly globalised, with exports amounting to £1.78 billion and imports amounting to £5.57 billion in 2012-13”. Imports hold a large share of the domestic market. Industry revenue is forecast to decrease an annualised 1.9% in the five years through 2012-13. Industry activity will be adversely affected by a decrease in the value of domestic demand and a decline in local manufacturers' export sales. Weak levels of retail spending will negatively impact domestic demand. Products manufactured in Asia and Eastern Europe dominate most consumer electronics markets in the UK and globally.
Over the next five years to 2017-18, industry revenue is expected to continue to fall but at a lesser rate than in the previous five years to 2012-13. Growth in consumer spending in the UK is forecast to pick up in the five years through 2017-18, growing by an annualised 1.8%. However, prices for some consumer goods and services, such as for food, fuel and utilities, are expected to rise at a relatively fast pace, which will affect growth in spending on other goods and services (including spending on consumer electronics). Fitzpatrick adds, “local manufacturers will continue to lose market share in the UK”. Successful UK companies will be those offering very high quality products and attractive brands, although they will often choose to make their products outside the UK.
The top four players in the Consumer Electronics Manufacturing industry are expected to account for about 8.6% of industry revenue in 2012-13 which gives the industry a low level of market share concentration. The only significant player in the industry is B & W Group Limited.
For more information on the Consumer Electronics Manufacturing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Companies in the Consumer Electronics Manufacturing industry manufacture electronic audio and video equipment for home entertainment, motor vehicles, public address systems and musical instrument amplification.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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