During the Third Industrial Revolution (Industry 3.0) we saw consumer electronics skyrocket, along with the computerization and digitization of every industry. Further, there are few industries as unique as consumer electronics. Market elephants such as LG, Apple, and Sony have driven innovation that transformed the way the world works.
Now, we’re all dying to know: What’s next? What are the electronics eCommerce platform market trends we can adopt this year? Keep reading to learn more.
Trend #1: Improve IoT, Maintenance, and Insights
The 5G rollout is helping to spur Internet-based device connectivity just as 3G helps to cement mobile video on demand. Consider this trend to continue far beyond 2021. In fact, many market leaders are already taking advantage of this opportunity space. According to a Market Research Future study, entire home systems are helping to automate workloads previously managed by humans and also finds significant growth for cross-functional devices.
There is also opportunity on the maintenance side so that IoT devices can be monitored, tracked, and re-supplied when needed.
Therefore, this trend speaks to the potential for companies to offer subscription-based maintenance plans or to act as replacement suppliers so consumers can continue doing what they want to do with little-to-no downtime. For instance, a remote worker who owns a printer, but does not live in proximity to an office supply store, can take advantage of a vendor who will auto-ship printing supplies and replacements.
IoT devices are embedded with sensors that collect a lot of data. They can also send this data to their respective consumer electronics companies to share how the devices are used and when they are used instead of waiting for customer feedback, which may provide unreliable and vague results.
Think of IoT devices as having sensors that can act as the proverbial fly on the wall. So, a consumer electronics company can use this data to improve design based on consumer usage habits and give customers what they want most.
It’s not always easy or time-efficient to send out customer surveys, hoping and waiting on comprehensive feedback. Instead, brick-and-mortar consumer electronics’ stores can also use IoT devices with beacons and geofences to better predict customer browsing and movement patterns. Thus, consumer electronics’ retailers can map their stores with products that align with consumer browsing habits.
Trend #2: Enhance the Supply Chain
Invariably, the COVID-19 disrupted the supply chains of many industries; consumer electronics notwithstanding. In the face of a pandemic, how do you create a more resilient supply chain?
Unfortunately, many product launches were delayed and some, permanently. As a result, consumer electronics’ companies had to make quick decisions around replacement sources for essential components. The rush also brought higher costs and risk as supplier qualification processes suffered due to lack of time.
However, an Electronic Components Industry Association (ECIA) survey found that supply chain stakeholders are more hopeful as Dale Ford, chief analyst with ECIA shares, “The survey presents a picture of renewed optimism as concern about impact on the supply chain and extended lead times fell significantly for all major component categories – passives, electro-mechanical and semiconductors. This survey saw concerns about nearly every stage of the supply chain, including end-market demand, reduce substantially.”
As many countries continue to go in and out of lockdowns, some supply chains will remain volatile putting increased pressure on local manufacturing. When humans aren’t able to work at manufacturing plants due to the pandemic, then it disrupts production. Hence, it may take awhile to manufacture at pre-pandemic levels.
The good news is the consumer electronics industry is consistently innovative. Leaders are always imagining new ways of doing business and designing electronics that makes consumers’ lives easier along with components that are easier to acquire even during a pandemic.
Trend #3: Rising Revenue and Fraud Risk
By 2024, the consumer electronics market is expected to reach $450 billion in annual sales. In addition, user penetration rates could expand to 32% by 2024. At one time, consumer electronics were considered toys for the wealthy. Today, they are embedded in the average consumer’s daily life, and they are much more affordable and accessible than they were 20, 30, or 40 years ago. As such, this is excellent news.
On the other hand, with more significant sales also comes a greater risk for eCommerce fraud. When a company is successful, it will have to contend with a more extensive number of online attacks. Often, cyber criminals choose to breach systems during busy sales periods because they hope to do so unnoticed. Other vulnerable periods include times of instability, such as during a pandemic.
Moreover, there are still many brick-and-mortar consumer electronics’ retailers who are rushing to set up their eCommerce stores and are more focused on launching than they are on cyber security.
With all the volatility, you would expect stagnant growth. Yet, reports show otherwise, and depict strong growth in this sector beyond 2021. Still, to prevent fraud and maintain growth, it is crucial for eCommerce retailers to implement a cyber security solution that incorporates machine learning, AI, and the expertise of consultants with deep experience in this field.
Drop us a line today to see how OroCommerce can help your business meet 2021’s trends, obstacles, and growth opportunities.
