By: Alex Lashkov
The global electronics industry is expected to grow at a steady annual rate of 3-5% over the next few years, according to expert forecasts. However, the geopolitical uncertainties, increasing demand for electronic components and the risks facing manufacturers are making consumers nervous. In the first half of 2024, the number of online orders for electronics grew by more than 15%, according to calculations by Admitad partner network. In the US, the increase in demand was even more dramatic, exceeding 33% in the first half of 2024.
Admitad analyzed more than 15 million orders worldwide and over 1.4 million orders in the United States for 2023 and January-May 2024. The study analyzed both orders on global brand sites and marketplaces as well as purchases on local platforms – Alibaba, Temu, Acer, Realme, Samsung, Oneplus, lenovo, Apple, Mivi and Oppo to name a few.
In 2023, US trends were already outpacing global market growth. Admitad’s data showed that American customers made 25% more orders in this segment compared to a 9% growth in global online sales, spending 13% more than in 2022.
However, these figures seem modest compared to the frantic demand seen in the first half of 2024. Americans made 33% more electronics purchases from January to May than in the same period the previous year, spending 35% more. The average order value for electronics in the US is now $108.
Interestingly, the share of mobile shopping in the US decreased slightly at the beginning of 2024, from 59% to 55%. Consumers are being more deliberate in their purchasing decisions, comparing several options in terms of features and reviews.
Anna Gidirim, Head of Admitad, explained, “The global spike in demand for electronics is understandable. If last year some buyers were still postponing the upgrade of computers and phones or the purchase of new gadgets because of rising prices, now it seems that everyone has already realized that the rise in cost is not a temporary phenomenon, and prices will clearly not go down in the near future. Both the cost of manufacturing and the price of raw materials for electronic components are rising. At the same time, the demand for them is increasing, including orders from government customers and large private industrial complexes. All these factors, of course, affect the prices and availability of electronics for ordinary customers.”
In early 2024, the anxiety of clients has been further fueled by the growing geopolitical tensions surrounding Taiwan, where a significant share of the global electronics industry is centered, followed by its extensive media coverage. Many buyers claim to “want to buy the gadget now before it’s too late.” Despite the high prices, they fear that their choices will only narrow further and some interesting options will be beyond their reach.
According to Admitad data, purchases from the Home appliances category jumped globally, with demand for them increasing by more than 20% in 2024. This is followed by Consumer Electronics (+18%), Computer & Office (+15%), Electronic Components & Supplies (+7%) and Phones & Telecommunications (+6%). Statistics on Americans also follow these trends.
Despite the frenzied demand, customers are still trying to minimize the damage to their budget. According to Admitad’s calculations, the share of customers who use cashback services while buying electronics doubled in the US. The share of coupons in electronics purchases also grew from 7.6% to 14% of orders.
Content platforms, affiliate stores, mobile apps, contextual advertising and social media remain the best channels for attracting sales for electronics brands in the US. These customer sources are the ones that will account for up to 90% of all orders in the category in 2024. Affiliate publishers, who attract customers and orders for brands for remuneration, are also not left out of the overall hype. Their financial growth in the US has already exceeded 39% in the first half of the year.
It is also important to note a major global trend that just reached the United States – the global growth of sales through financial stores. These are sites that publish a selection of lucrative options for buying goods on credit or installments. Due to the global price hike and customers’ desire to upgrade their appliances as soon as possible, more and more clients are turning to such options. The number of orders through these platforms has already doubled globally in 2024.
While the current situation appears extremely positive for electronics brands in the US and globally, with products quickly selling out, there is a risk of market overheating. Excessive customer activity in the first half of the year could lead to an unexpected downturn in the second half. Brands should consider this possibility when planning their activities and budgets.
Published by: Holy Minoza
