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Home Networking Components Go Retail
A new report from Parks
Associates reveals a growing retail presence among companies manufacturing end-user home
networking products, an indication that the home networking industry is making headway in
the mass market. The effect is already visible on retail shelves, according to
Networks
@ Home: The Retail Market for Home Networking Components. Currently, 35% of home
networking components are shipping through brick-and-mortar retail channels, and
initiatives such as the Internet Home Alliance will only strengthen the budding
relationship between home networking manufacturers and retail outlets.
"As more products enabling enhanced connectivity and Internet
services begin to roll out, the activity in the retail space will increase
accordingly," said Nikki Robison, a home networks analyst for Parks Associates.
"Already, we are seeing plans for interactive kiosks and in-store product
demonstrations to display the benefits of a connected lifestyle."
"The Internet has introduced streaming and downloadable audio and video, altering
both the delivery and format of entertainment," said Tricia Parks, president of Parks
Associates. "Consumers, as they start to understand the sheer breadth of their
choices, do not want to be confined to one room or one TV set. These consumers are
starting to anticipate future solutions and advanced entertainment options with a growing
amount of optimism."
Business models are shifting in order to educate consumers about the extent of
solutions available and to provide opportunities for customers to experience connectivity,
entertainment, and content-rich applications at retail locations. The announcement of the
Internet Home Alliance, made at Parks Associates’ Forum2000, confirms that large
retailers intend to play an aggressive role as the home networking market continues to
gain strength by building a foundation based on standards.
The effort to devise open standards and specifications, though incomplete, has greatly
benefited manufacturers in developing products for retail sale. Beyond coexistence,
"standards" grant added benefits, including backward compatibility,
interoperability, ease of installation, and ease of use, that allow for a cheaper cost of
production per unit and per variety of product. Home networking manufacturers thus have
more resources for marketing efforts and consumer education, along with the ability to
influence the purchase decision at the retail level, where consumers make decisions based
on simple, communicable benefits that enhance their lives.
"These products have to show obvious value, and Parks Associates anticipates that
retailers and manufacturers will make great strides in leveraging what is otherwise
expensive shelf space inside a retail location to demonstrate the benefits of these
products to the consumer," Robison said.
For additional information about this study, please contact
Parks Associates at
972-490-1113 or sales@parksassociates.com.
About Parks Associates: Parks Associates is an
internationally recognized market research and consulting company specializing
in emerging consumer technology products and services. Founded in 1986, Parks
Associates creates research capital for companies ranging from Fortune 500 to
small start-ups through market reports, primary studies, consumer research,
custom research, workshops, executive conferences, and annual service
subscriptions.
The company's expertise includes new media, digital
entertainment and gaming, home networks, Internet and television services,
digital health, mobile applications and services, consumer electronics, and home
control systems and security.
Each year, Parks Associates hosts executive thought
leadership conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA®), and CONNECTIONS™ Europe. In addition, Parks
Associates produces the online publication Industry Insights in
conjunction with the CONNECTIONS™ Conference series.
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