Decline Of Industry In Australia

Players in the industry decline

In February of 2012, over 500 employees of Queensland’s WOW Audio Visual Superstores were dismissed when the 15-store chain was put into administration. In the same month, Australia’s largest and most profitable retailer, Woolworths, announced that they would be seeking a buyer for its Dick Smith Electronics enterprise (IN TEXT). In May of 2012, Harvey Norman reported a 44% collapse in pre-tax earnings for the third quarter, stating “aggressive competitor activity” in the audiovisual and information technology sector was the main culprit. Retravision, an Australian-based retailer of computers and electronics had stores located around all of Australia, however, their stores are now predominately found in Western

“Its all going the way it looked like it would, and it has got a long way to go yet,” he said. Consumer spending has become undone from the normal cyclical factors that would usually keep it up and running, such as low unemployment and falling interest rates. “We’ve never had a situation where so many stores are not making money, and in an economy like this they would normally be making a lot of money”, Mr Harvey said (Speedy,

The consumer electronics industry is relatively concentrated and highly competitive. Price is often the decisive factor in consumer purchasing decisions (IN TEXT). JB Hi-Fi markets itself with price competitiveness as its main objective with slogans such as “Always cheapest prices” beside its logo.

Consumer electronics, as an industry is expected to have stable growth over the coming years with portable devices predicted to be the dominant form of growth within the sector. Additionally, the high impact of technological innovations and changing consumer spending are likely to help fuel growth in the industry. However, categories such as in-car entertainment and video players are expected to further decline in sales between 2015 and 2020 as new products enter the market (IN TEXT). Manufacturers will need to adjust their business strategies to accommodate the growing niche group of consumers in these