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Los Angeles, CA (PRWEB) May 27, 2012 Declining household wealth, rising unemployment rates and uncleareconomic conditions resulted in low disposable income levels in thefive years to 2012. With less discretionary spending moneyavailable, American consumers cut back on their purchases ofbig-ticket items, says IBISWorld analyst Eben Jose, includingconsumer electronics (e.g. TVs and stereos) and home appliances(e.g. washers and dryers). Retailers subsequently experiencedrevenue declines, which caused them to either close down operationsor reduce their inventory levels. As a result, the TV and Appliance Wholesaling industry's revenue suffered from falling downstream demand. Tothis end, revenue is expected to decrease at an annualized rate of2.6% to $82.0 billion over the five years to 2012. Despite thisdownward trend across the five-year period, demand conditionsrecovered with improvements in the economy in 2010 and 2011, andrevenue rose 0.6% and 1.7%, respectively, over those years. In addition to weakened downstream demand, wholesale bypass furtherdecreased TV and Appliance Wholesaling industry revenue. In the past five years, large consumerelectronics and home appliance retailers have become more willingto purchase directly from manufacturers and omit the wholesaleintermediary. This practice allows stores to take advantage oflower prices. Eliminating the middleman significantly reduced thenumber of supply contracts available to wholesalers and reducedindustry profitability, says Jose. Falling profit margins haveforced some wholesale operators to exit the industry. As a result,the number of enterprises is expected to fall from 2,323 firms in2007 to an estimated 1,993 in 2012. The majority of the businessesin the industry are privately owned and have been successfullysupplying the local retail demand in their communities. As such,IBISWorld projects that the industry's market concentration willremain low through 2017. Led by growing downstream demand, the wholesaling industry isforecast to experience growth in the five years to 2017. Improvingconsumer sentiment and household disposable income levels willencourage consumers to spend on electronics and appliances. Inaddition, technological developments, especially in regards to TVs,will likely encourage consumers to update older appliances, whichwill support demand as retailers turn to wholesalers to replenishtheir inventories. For more information, visit IBISWorlds TV and Appliance Wholesaling in the US industry report page. Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld Friend IBISWorld on Facebook: pages/IBISWorld/121347533189 IBISWorld industry Report Key Topics Operators in this industry wholesale a range of electric householdappliances such as refrigerators and washing machines as well asconsumer electronics like TVs, DVD players and stereo systems.Goods are purchased from domestic and international manufacturersand then sold to mass merchandisers, department stores, homeimprovement stores and other appliance retailers. Industry Performance Executive Summary Key External Drivers Current Performance Industry Outlook Industry Life Cycle Products & Markets Supply Chain Products & Services Major Markets Globalization & Trade Business Locations Competitive Landscape Market Share Concentration Key Success Factors Cost Structure Benchmarks Barriers to Entry Major Companies Operating Conditions Capital Intensity Key Statistics Industry Data Annual Change Key Ratios About IBISWorld Inc. Recognized as the nations most trusted independent source ofindustry and market research, IBISWorld offers a comprehensivedatabase of unique information and analysis on every US industry.With an extensive online portfolio, valued for its depth and scope,the company equips clients with the insight necessary to makebetter business decisions. Headquartered in Los Angeles, IBISWorldserves a range of business, professional service and governmentorganizations through more than 10 locations worldwide. For moreinformation, visit or call 1-800-330-3772. Read the full story at releases/2012/5/prweb9547644.htm . The e-commerce company in China offers quality products such as Non Woven Cloth Manufacturer , China Shoe Shine Kit, and more. For more , please visit Spunbond Nonwoven today!
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