Dave Taylor has been involved with the online world since 1980 and
is recognized globally as an expert on both technical and business
issues. He has been published over a thousand times, launched four Internet-related
startup companies, has written twenty business and technical books and holds both an MBA and MS Ed.
He's a columnist for the Boulder Daily Camera and
Linux Journal and frequently appears
in other publications both online and in print.
Additionally, Dave maintains four weblogs:
The Business Blog at Intuitive.com,
Ask Dave Taylor,
Dave On Film,
Based in beautiful Boulder, Colorado, Dave is an award-winning speaker, sought after conference and workshop participant and
frequent guest on radio and podcast programs, as well as active member of
his community and busy single father to three children.
Major appliances are still not purchased online
Reading the latest issue of Consumer Electronics publication TWICE I came across their list of the top 100 Major Appliance Retailers and was struck by how there are no online companies on the list.
There are companies that have a significant online presence, of course, like Sears, but I think it's safe to say that unlike consumer electronics purchasing habits, major appliances (the industry calls the category "majapp", by the way) are still purchased based on in-store discussions with salespeople and hands-on experience.
The list of top Majapp retailers:
Sears, with $8.3 billion in major appliance sales in 2007 (a drop of 7.3% from their 2006 sales)
Lowe's, with $4.3 billion in majapp sales (an increase of 3.1% over their 2006 sales)
Home Depot, with $3.8 billion in sales (an increase in 2.3% from 2006 sales)
Best Buy, with $1.9 billion in sales (an impressive increase of 8.3% over 2006 sales. Best Buy is really becoming a powerhouse in both majapp and consumer electronics sales!)
Wal*Mart, with $713 million in sales (an increase of 5.1% over 2006)
hhgregg, with $486 million in sales (a staggering increase of 36.6% over 2006 sales)
BrandsMart, with $269 million in sales (a decrease of 2.7% from 2006 sales)
Conn's, with $224 million in sales (a 3.0% decrease over 2006 sales)
Costco Wholesale, with $211 million in sales (an increase of 0.9% over 2006 sales figures)
The rest of the top 25? Pacific Sales Kitchen & Bath Centers, Target, ABC Warehouse, ABT Electronics and Appliances, Menards, Sam's Club, EXPO Design CEnter, R.C. Willey Home Furnishings, American TV & Appliances, Nebraska Furniture Mart, The Great Indoors, Appliance Direct, Kmart, Fry's Electronics and Grants Appliance.
Somehow, in 2008 I expect to see some sort of company like "Appliances Online" or even Amazon show up on the top 25 list (after all, Grants Appliance is on the list with only $77 million in annual major appliance sales)...
Is it possible that major appliances will always be purchased primarily through a physical storefront, perhaps simply due to the complexity of delivery and installation? What do you think?
Before you leave a comment, a tip: If you're interested in blogging, you should sign up for my Blogsmart News so you can stay up to date
on the latest insider tips and ideas for your Internet business and marketing
efforts. Sign up right now and you'll get a free copy
of my "Insider's Guide to Blogging" ebook too!