The markets in which we operate are changing faster and faster. In this article we will explore this from the perspective of the “Electrical Appliance” market, and consider how markets develop over time.
Initially there were a number of third generation electrical radio manufacturers who started business by trading simple “radios”. So initially selling a very limited product range from a single location with a single cash transaction.
The UK electrical appliance market has undergone significant changes over the last twenty years. Here are some of the key trends:
- Shift to Online Sales: The rise of e-commerce and online shopping has led to a shift in consumer behavior, with more people purchasing electrical appliances online. This has led to the decline of traditional brick-and-mortar stores, with many retailers closing down physical locations.
- Growth of Smart Home Technology: There has been a significant increase in the popularity of smart home technology, including smart appliances such as fridges, ovens, and washing machines. This has been driven by the increasing availability of affordable technology, as well as the convenience and energy-saving benefits that smart appliances offer.
- Energy Efficiency: There has been a growing emphasis on energy efficiency, with consumers looking for appliances that are more environmentally friendly and cost-effective to run. This has led to the development of energy-efficient technologies and regulations, such as the EU energy labeling scheme.
- Increase in Competition: The electrical appliance market has become increasingly competitive, with new players entering the market and established brands expanding their product lines. This has resulted in a wider range of products and prices for consumers to choose from.
- Decline in Small Independent Retailers: Over the last twenty years, there has been a decline in small independent retailers, with many unable to compete with larger, more established brands. This has led to a consolidation of the market, with a small number of dominant players.
The UK electrical appliance market has undergone significant changes over the last twenty years, with a shift towards online sales, growth in smart home technology, an emphasis on energy efficiency, increased competition, and a decline in small independent retailers.
How Markets Develop Over Time – The 1990’s
- Sales £15 million ; Rental £12 million
- Staff 120 in 34 Retail locations
- Service & Distribution 150 staff in 5 sites
- Head Office 40 Staff 1 site
|From 22 Specialist Electrical Chains||To 3 Specialist Electrical Chains|
|Comet, Currys, Radio Rental
Laskys, Rumbelows, Tandy
Miller Brothers, Powerhouse, Clydesdale
bennets, Atlantis , Apollo 2000 etc
Six Reasons For The Change From 22 electrical retailers to 3
- On Line
- Property Costs
- Power has moved from retailer to manufacturer
Today things are a lot more complicated
- Sales £50 million ; Rental £20 million
- Staff 400 in 42 Retail locations
- Service & Distribution 300 staff in 5 sites
- Head Office 40 Staff 1 site
- Web Sales £24 million Web Rental £4 million – Staff 70 in 2 sites
- Trade B2B Sales £16 million rental £1 million Staff 70 in 2 sites
In summary – Shop activity falling, rental and trade growing. The level of complexity is increasing
- Geographical spread
- Channel spread
- Product breadth
- Skills breadth
Elements Of A Surviving High Performing Electrical Retailer
- Their culture puts people staff, customers and suppliers first
- Mission statement – to generate profits by inspiring customer loyalty through added value services
- Staff recruitment – choose those with “people skills” i.e emotional intelligence
- Continuous Staff Training is crucial
- With performance management empower the staff to set their target
- Create staff ownership – we have this problem what could we do.
How Markets Develop Over Time
Over the last 20 years, the business sectors in the UK have undergone significant changes due to various factors such as technological advancements, economic shifts, and changing consumer preferences. Some key trends and transformations observed in different sectors are summarised below
- Technology and Digitalisation: The technology sector has experienced substantial growth, with the rise of digitalisation impacting various industries. The expansion of e-commerce, cloud computing, artificial intelligence (AI), and software development has led to the emergence of new businesses and job opportunities in sectors like fintech, cybersecurity, digital marketing, and software as a service (SaaS).
- Retail and Consumer Behaviour: The retail sector has undergone significant changes due to the shift in consumer behaviour and preferences. Traditional brick-and-mortar stores have faced challenges from the growth of online shopping, resulting in the rise of e-commerce giants like Amazon. There has also been a surge in the popularity of discount retailers and a move towards more sustainable and ethical consumption.
- Financial Services: The financial sector has seen considerable changes driven by regulatory reforms and advancements in technology. The 2008 financial crisis led to increased regulations and scrutiny, affecting banking practices. Fintech companies have emerged, disrupting traditional financial services by offering innovative solutions such as mobile banking, peer-to-peer lending, and digital payment systems.
- Energy and Sustainability: The focus on renewable energy and sustainability has intensified over the years. The UK has witnessed a significant shift towards cleaner energy sources, such as wind and solar power. This has led to the growth of renewable energy companies and the decline of traditional fossil fuel-based industries.
- Creative Industries: The creative industries, including advertising, film, music, and gaming, have experienced growth and diversification. The rise of digital platforms and streaming services has transformed the way content is produced, distributed, and consumed. Additionally, the UK’s creative sector has been recognized as a significant contributor to the economy.
- Healthcare and Life Sciences: The healthcare sector has undergone advancements in medical technology, pharmaceuticals, and healthcare services. There has been an increased focus on personalised medicine, digital health solutions, and the development of innovative therapies. The COVID-19 pandemic also brought attention to the healthcare industry, highlighting the importance of medical research and public health infrastructure.
- Manufacturing: The manufacturing sector has faced challenges due to globalisation and increased competition from emerging economies. However, there has been a shift towards advanced manufacturing and automation, with an emphasis on high-tech industries, such as aerospace, automotive, and robotics.
It’s important to note that these changes are broad trends and may not capture the full spectrum of developments across all sectors. The UK business landscape has been dynamic, influenced by both global and local factors, and will continue to evolve in response to future challenges and opportunities.
If you would like more information on how markets develop over time talk to specialist marketing consultant