Industry Analysis & Industry Trends
The Audio and Video Equipment Retailers industry comprises businesses that sell products such as TVs, audio and video players and recorders, portable players and audio and video accessories. In recent years, retailers have been adversely affected by several factors. The economic downturn resulted in high unemployment and uncertainty among consumers, who reduced their spending on discretionary goods. This change in consumer behaviour affected retailers and industry revenue slumped on account of the lack of demand. Over the five years through 2016-17, IBISWorld estimates that industry revenue will decrease at a compound annual rate of 2.5% to reach £471.4 million.
Industry retailers have also faced increasing external competition from department stores and online retailers... purchase to read more
Industry Report - Starting a New Business Chapter
Overall, there are moderate barriers to entry for the Audio and Video Equipment Retailers industry. The major expense faced by new entrants is the cost of acquiring retail space with close proximity to consumers and acquiring stock. The established players in the industry have access to economies of scale, meaning they are able to apply discounts because of the amount of products they purchase. They typically have an established and trusted relationship with suppliers, which makes the task of acquiring stock easier. Employees must be adequately trained, as they are required to have good knowledge of the product, which helps when selling to customers.
Once in the industry, new entrants face a number of barriers to success. Ret.. purchase to read more