Wednesday, October 03, 2018

27% of U.S. broadband households bought most recent CE purchase through an online retailer

Research firm releases new consumer research on connected consumer electronics market 

Parks Associates today released new consumer research showing more than 25% of U.S. broadband households made their most recent CE purchase through an online retailer, boosted in large part by smart speaker sales. 360 View: Connected CE and Trends shows national or local brick & mortar retailers account for nearly 50% of recent CE purchases, while service providers such as AT&T and Comcast account for 13% and purchases direct from a manufacturer represent 11% of recent sales.

Where Consumers Most Recently Purchased Their CE Products | Parks Associates

“Overall e-commerce accounts for 9-10% of all U.S. retail sales, so CE products sales are well above that average,” said Kristen Hanich, Research Analyst, Parks Associates. “The popularity of smart speakers in particular are driving online sales, with more than 60% of recent sales going through an online retailer such as Amazon. Since intention to purchase for smart speakers is also growing year-over-year, online retailers stand to take an even larger part of CE purchases going forward.”

With a mature smartphone market, growth in the connected CE space is increasingly being driven by connected video and audio devices such as smart TVs, streaming media players, and smart speakers with personal assistants.

“Overall CE purchase expectations for 2018 are lower than reported in previous years,” Hanich said. “This decline is in line with current trends, although actual purchase rates are typically higher than reported intentions, as consumers cannot always plan their purchases in advance. However, since the replacement cycles for TV and streaming devices are longer than those of smartphones, manufacturers will eventually face the challenging of convincing buyers to purchase an upgrade. One strategy is to integrate voice control into TVs and remotes, to enhance the user experience.”

Additional research also reveals:

  • As of Q1 2018, only 21% of U.S. broadband households intended to purchase a smartphone, as compared to 28% of HHs in Q1 2017.
  • 87% of smart watch owners rank features as a top five purchase consideration.
  • Smart speaker households own an average of four more CE devices than non-smart speaker households: 45% own 12 or more CE devices.

 

For more information about 360 View: CE Adoption and Trends, contact sales@parksassociates.com. To schedule an interview with an analyst or to request specific research data, please contact Julia Homier at julia.homier@parksassociates.com, 972-996-0202.

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com

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