IBIS World finds, Because of the increase in the revenue drop and the release of new and enhanced products in U.K, there is a huge demand for consumer electronics, such as flat-panel TVs, MP3 players, and high-definition DVDs. The sudden fall in prices has negatively impacted the value of sales
The report says that, the UK consumer electronics manufacturing industry is forecast to generate revenue of £2.17 billion in 2012-13, down 1.2% compared with 2011-12.
As per the report, the top four players in the consumer electronics manufacturing industry are forecast to account for about 8.6% of industry revenue in 2012-13 which gives the industry a low level of market share concentration and the only major player in the industry is B & W Group Limited.
According to Nigel Fitzpatrick, IBIS World industry analyst, the industry is highly globalised, with exports of £1.78 billion and imports of £5.57 billion in 2012-13 and also said that, the imports hold a large share of the domestic market and local manufacturers will continue to lose market share in the U.K. A forecast has been made that the industry revenue will decrease to 1.9% in the five years through 2012-13 and industry activity will have an adverse affect by a decrease in the value of domestic demand and a decline in local manufacturers’ export sales. Products manufactured in Asia and Eastern Europe dominate most consumer electronics markets in the UK and globally.
According to the report, in U.K the growth in consumer spending is forecast to rise in the five years through 2017-18, growing by an annualised 1.8% and the prices for some consumer goods and services, such as for food, fuel and utilities, are likely to rise at a relatively fast pace, which will affect growth in spending on other goods and services including spending on consumer electronics.