Search Posts

Digital IQ Index® – Consumer Electronics 2016

The smartphone market, the focal point of the Consumer Electronics industry since 2007, has reached an inevitable saturation point—as of 2016, 80 percent of Americans own a smartphone.

Legacy players have already shifted their focus to wearables and “the internet of things” as areas to replenish lost value, ceding the primary battle to Apple and Samsung.

While Apple operates 489 store locations in almost two dozen countries, only 8 other brands out of 61 we tracked in this year’s study have any physical store presence. The remaining consumer electronics brands find themselves in uncharted waters.

Brands lacking a vertical retail channel have become heavily reliance on a heavily branded presence on leading e-tailers to minimize comparison shopping and secure customer conversion.

Presently, 70% of this years Index have built our Store-within-a-Store on BestBuy.com, as compared to only 21% on Walmart.com. These microsites offer brand specific support areas, brand gated comparison tools, and product videos.

Nearly all brands distribute across Walmart, Best Buy and Amazon, yet only 11% of brands control a category visibility of 10% across all three, showing gaps in e-tailer optimization.

Despite engaging minimally in conventional forms of display advertising, Apple tops this year’s ranking, with an unrivaled mobile site + mobile app experience that utilizes the user’s location, previous device purchase, phone carrier settings, and other personal information to target a fiercely loyal consumer in each and every successive product launch.

L2’s Digital IQ Index®: Consumer Electronics 2016 quantifies the digital competence of 61 Consumer Electronic brands within 6 distinct categories operating in the U.S. market. Members can download the full report at L2inc.com.

Leave a Reply

Your email address will not be published. Required fields are marked *