Household Appliance Stores

Household Appliance Stores

Brief Excerpt from Industry Overview Chapter:

Companies in this industry sell household appliances, both major and small, from physical retail locations. No major companies dominate the industry.

COMPETITIVE LANDSCAPE

Demand is driven by home sales, home remodeling, replacement due to product failure, and technological innovation. The profitability of individual companies depends on effective marketing and merchandising. Large companies can negotiate volume discounts from manufacturers. Small companies can compete effectively by offering superior customer service or specializing in product segments. The US industry is fragmented: the 50 largest companies account for less than 50% of industry sales.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product segments include kitchen appliances (about 55% of revenue), laundry appliances (15%), and televisions, audio, and video equipment (10%). Kitchen appliances include refrigerators, freezers, dishwashers, and microwaves. Kitchen and laundry appliances are often referred to as "white goods." Other household appliances include room air conditioners, dehumidifiers, and vacuum cleaners. Stores typically offer extended warranties and delivery, installation, or repair services.