Monday December 15, 2008 – Shelby Cunningham
If the big-box discount retailers are the ones to sell the most consumer-electronics products in this recession-burdened holiday season, will the growing attractiveness of private-label store brands put big dents in market-share usually held by traditional consumer electronics brands?
The tanking economy coupled with big-box stores devoting more shelf space to private-label brands could upset the TV market-share apple cart. More shelf space inherently increases consumer visibility, and leveraged with cheaper prices and bigger screens for the buck, this may be the recipe that allows house brands to eat into that coveted market share generally occupied by household names.
Traditionally companies like Sony and LG win out with huge sales compared to store brands and lesser known brands like Trutech and Insignia. But discount retailers can drive greater profit margins with house brands especially in this times when consumers are ripe for bargain shopping. With some stores giving the off brands prime shelf space previously reserved for name brand products, perennial popular brands like Sony and LG may lose some market share.
A coworker admitted being tempted to buy a house brand TV while out Christmas shopping at a big box store just because it was so inexpensive. She resisted the urge because there wasn’t a need for a new TV in her home, but retailers are fostering similar interest from lots of consumers, and DTC expects that everyone won’t exercise the same discipline.
