Value sales within the Japanese electronics retailers market decreased by 6% through 2012.
After the Eco-point scheme and the digital TV switch in 2011, electronics specialists have been trying to maintain their sales with new initiatives and one of their strategies is expansion of the customer base by encouraging more female consumers to visit stores.
Historically, the majority of customers at electronics retailers have been men and no specific marketing activities were conducted towards women in the past. However, as more women choose to remain in the workforce and their purchasing power increases, they have become key potential customers over the past few years.
The switch from analogue to digital TV took place in August 2011, after which sales of flat screen TVs suffered a sharp decline. Sales of digital TVs spiked at ¥2,210 billion in 2010 before the switch and then declined sharply by 39% and 29% in 2011 and 2012, respectively. Additionally, the government-funded scheme Eco-point ended in March 2011 and the industry experienced declining sales in 2012.
An additional sales strategy is the expansion of product offering at electronics retailers. After the Tohoku earthquake, consumer awareness of environmental conservation increased and selective retailers are also promoting the "Smart House" concept, which focuses on energy-efficient homes that use renewable energy sources such as solar energy. In 2012, Yamada Denki Co Ltd increased the number of outlets that sell solar panels in addition to consumer electronics and appliances.
Yamada Denki Co Ltd continues to lead the industry with a value share of 26% in 2012. In July 2012, Yamada Denki Co Ltd announced its intention to acquire Best Denki Co Ltd. Best Denki Co Ltd struggled to maintain its sales and saw its sales decline sharply by 36% from September to November after the digital TV switch took place in August 2011.
After the merger takes place, Best Denki Co Ltd is expected to close outlets in Okinawa and Kyushu, and integrate remaining outlets to align with Yamada Denki Co Ltd.
Apple was the fastest growing retailer, posting a compound annual growth rate (CAGR) of 34% in value sales over the 2008-2012 period. Apple's phenomenal growth comes from its continuous product innovation and delivery including the iPhone, iPad and MacBook Air. Additionally, Apple offers quality service for customers who purchased Apple products directly from Apple Japan.
For more information on the Japanese electronics retailers market, see the latest research: Japanese Electronics Retailers Market
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