The industry is suffering due to competition from low-cost imports
London, United Kingdom (PRWEB) September 05, 2012
John Logie Baird, a Scotsman, was the first person to demonstrate a working TV in 1926. After that, Britain led the way in TV manufacturing for some time. However, almost all TVs sold in Britain are now imported. Demand in the United Kingdom for consumer electronics, such as flat-panel TVs, MP3 players and high-definition DVDs, is growing. However, more often than not consumer electronics are being manufactured in foreign countries where labour costs are low.
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. 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. Exports and, to a lesser extent, imports are inflated by re-exports, which are exports of imported products. 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. According to IBISWorld industry analyst Nigel Fitzpatrick, “products manufactured in Asia and Eastern Europe dominate most consumer electronics markets in the United Kingdom.”
Over the next five years to 2017-18, industry revenue is expected to continue to fall. Fitzpatrick adds, “local manufacturers will continue to lose market share in the UK and in global markets to manufacturers located in countries where labour costs are low and supply chains are deep”. 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 United Kingdom.
The Consumer Electronics Manufacturing industry has a low level of market share concentration with the top four industry players expected to account for about 10.6% of industry revenue in 2012-13. Industry concentration has increased in certain segments over the past five years due to a thinning of the local manufacturing industry and market share gains by major players. However, products and markets in the industry have broadened. Local companies hold a small percentage of the overall UK market for consumer electronics. Major companies include B & W Group and BSkyB.
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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