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The Consumer Electronics Industry

The consumer electronics industry is a global business. In recent years, the consumer electronics industry is in the midst of a new wave of change, witnessing a phenomenal growth. It is ushering in a dawn of convergence, of technologies, products and markets. Consumer electronics appliances such as digital televisions, portable media players and educational toys are in a state of constant flux. The convergence of digital-based audio, video and information technology is a major reason. These changes began nearly two decades ago and have resulted in an avalanche of state of the art electronic devices in the market. The demand for a multitude of portable, in-home or in-car consumer electronic items with multiple functions has increased tremendously.

Digitalization, miniaturization and mobility are the key elements for modern consumer electronic products. Digitalization transformed the consumer electronics sector, delivering new and exciting entertainment products that have changed the way we live. It paved the way for digital devices such as camcorders, DVD player/recorder, still camera, computer monitor and LCD TV. The computer industry has also benefited, making its way into the family living room. Miniaturization also accelerates the growth of the consumer electronics industry.

Fundamentally, the changes in the consumer electronics industry are not being driven by product evolution, but by fluctuations in the industry's business models. Companies that are capable of change and those that develop branding will be most successful.

Consumer electronics companies producing computers, televisions, DVD players and other household electronics face the same challenges as other consumer goods companies. The lifecycle of consumer electronics products is shrinking along with severe price deflation, a factor that makes demand, pricing and promotions management even more challenging. Innovation, differentiation and flexibility are critical to a company?s survival in the consumer electronics market. The rapidly falling prices and improved functionality provided by convergence are influential forces behind the growing consumer


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