Electronics and Appliance Specialist Retailers in Mexico

PROSPECTS

Specialists offer added-value, which differentiates them from other channels

Consumers in Mexico have several channels through which they can buy electronics and appliances, including hypermarkets (Walmart, Soriana Hiper, Commercial Mexicana and Chedraui); discounters (in which Bodega Aurrera is strongly positioned amongst the low-income segment); variety stores (where Coppel, Elektra and Famsa are well-positioned with credit schemes for low-income customers); office supply stores (in which Office Depot leads); department stores (with large chains such as Liverpool and Sears); and warehouse clubs (Sam’s Club and Costco, with attractive products and prices for middle- and high-income consumers). Despite this strong competition, electronics and appliance specialist retailers remain attractive, and sales are growing at healthy pace.

Growth is expected to continue

As the use of electronics and appliances increases amongst the population, and along with this the need for components and accessories, consumers will continue to demand a prompt response to their demands and will require professional assistance. This will lead to the growth of the channel in the forecast period.

A highly fragmented channel

In terms of outlet numbers, the four leading chains in the channel hold only a low share, with the majority of outlets being smaller chains and independent retailers. The four leading chains might gain share in terms of outlet numbers, given their plans to open new outlets, although they will continue to account for a low share in the short-term.

COMPETITIVE LANDSCAPE

Best Buy leads

Best Buy led electronics and appliance specialist retailers in 2018. Its main competitive advantage is its customer service.

Different store formats for Best Buy

Best Buy has two store formats – one is the traditional store with over 3,000 sq m of selling space per outlet, whilst the second is the Express format, with an average selling space of only 140 sq m. Best Buy Express outlets offer a limited range of products, focusing on only the best-selling items.

Steren maintains its growth

Steren has been present in the market for 60 years and has a good reputation, which gives confidence to customers. The company constantly offers new products in its portfolio, and has stated that it has expansion plans in Mexico and other countries in Latin America.

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