Electronics and specialist retailers saw a slight increase in value in 2018 supported by several factors, including the FIFA World Cup in Russia, during which Japan’s national football team advanced to the last 16. This stimulated football fans to buy new TVs and, with a significant time difference between Japan and Russia, video recording equipment.
4K and 8K broadcasting began on 1 December 2018. TV manufacturers and electronics and appliance specialist retailers are trying to use this event to encourage people to replace their TVs.
As in other categories, electronics and appliance specialist retailers are being impacted by the expansion of internet retailing, and sales of both consumer electronics and consumer appliances are set to continue to grow strongly over the forecast period. Yodobashi Camera and Bic Camera are working to develop broad online offers, extending beyond electronics and appliance products into beauty and personal care goods and alcoholic drinks in order to prompt consumers to make more regular purchases.
Apple increased it store network from six to nine outlets in 2018, in line with the focus on physical stores as part of the “Town Square” strategy. Apple does not view bricks and mortar stores simply as sites for selling products, but rather as places to engage consumers and enhance the Apple experience.
Edion launched the private label, e angle, in 2018. Electronics and appliances specialist retailers’ private labels used to rely simply on making minor changes to existing products, such as using different colours.
Yodobashi has been the electronics and appliance specialist retailer to expand most successfully into internet retailing so far, registering more than 15% of its sales online. The company entered the arena before many rivals and benefits from strong logistics, unusually owning its own delivery services which make free delivery in a two-and-a-half hour time frame available to a limited area of Tokyo and some surrounding cities.
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This industry report originates from Passport, our Retailing market research database.