Is There Brand Affinity in Consumer Electronics?

Japanese manufacturers (sony, panasonic, canon, sharp) have long been the established brand names for consumer electronics products until Korean manufacturers (Samsung, LG) bubbled up on the scene earlier in the 21st century. But regardless these are all big brands withlot of credibility, huge marketing spend, good products and hassle-free customer service (well, at least that'sthe common perception). Enter Vizio. Some of you might remember LCD TVs from Vizio on display at Costco and Sam's Clubs. In the last quarter, Vizio became the market leader for LCD TVs in North America. Surpised? Don't be. Vizio sold a total of 606,402 LCD TVs (14.5% market share) in the second quarter, displacing the former market leader Samsung who slipped to second place with 467,210 units (11.2% market share). Yes, a big part of this shift is the fact that Vizio was successful in driving distribution beyond the warehouse stores, including at Wal-Mart, Sears, Kmart and Circuit City. Also true is the fact that an average consumer can't tell the differece in quality between a Vizio and Sony on the store floor. It begs the $150B question. Are consumers becoming less brand-sensitive or do manufacturers need to do a better job of differentiating their products and the user experience so they can build/keep brand loyalty. Well, there may not be a simple answer but we at Retrevo intend to help consumers enjoy their shopping and post-purchase experience whether they have brand loyalty or not. Stay tuned for more.


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