Demand for consumer electronics in the U.S. will increase by 3.9% to $351 billion in 2018, according to the Consumer Technology Association (CTA).
The projected growth will help drum up business, particularly for online retailers. As more people shop for the latest gadgets online, experts like Vonazon emphasize the need for enterprises need to invest in more digital marketing solutions.
The CTA said that the higher demand for technology items will be more noticeable for smart speakers, smart-home and VR products, drones, and wearable products. Retailers are likely to sell around 715 million electronic devices this year, up 6.6%.
The group’s forecast aligned with the National Retail Federation’s (NRF) outlook for overall retail sales in the country. The NRF anticipate sales to increase up to 4.4% following strong growth in 2017, when sales reached $3.5 trillion based on U.S. Census Bureau data. NRF President and CEO Matthew Shay attributed the industry’s performance to a “robust holiday season.”
E-commerce retailers and traditional brick-and-mortar shops, such as shopping malls, would record a combined increase of up to 12% in sales, according to the NRF. The outlook further swung in the favor of the industry due to the federal government’s recent tax reforms. Despite job cuts and store closures nationwide, many companies remain optimistic that the corporate tax cuts would do well for their business.
The tax reforms would also benefit consumers, who would be able to have a higher spending power, said Retail Metrics founder Ken Perkins. Retailers, however, need to invest more in upgrading their services such as e-commerce platforms, logistics and inventory management to keep up with the competition.
An increase in consumer electronics sales for this year bodes well not only for retailers, but also for manufacturers and the country’s economy. What is your outlook on the U.S. retail industry for 2018?