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In recent years, the consumer electronics industry has experienced a new wave of change, which has witnessed an exceptional growth. It has ushered the dawning of a new era of convergence, of technologies, products and markets. For this reason, common consumer electronics appliances like digital televisions, portable media players and educational toys have been put to the state of constant improvement. This has been credited mainly on the convergence of digital-based audio, video and information technology resulting in a flood of state-of-the-art electronic devices in the market. Moreover, it has created an impressive demand for a lot of portable, in-home or in-car consumer electronic items with multiple functions.
The key elements for modern consumer electronic products would include digitalisation, miniaturisation and mobility. The consumer electronics sector has been transformed through digitalisation delivering new and exciting entertainment products that have changed our lifestyle. It has also given way for digital devices such as camcorder, still camera, computer monitor, DVD player/recorder and LCD TV. In addition, this has benefited the computer industry that has made its way into the living room of every household. The growth of the consumer electronics industry has also been accelerated through miniaturisation.
The changes in the consumer electronics industry are not fundamentally driven by product evolution, but by the fluctuations of the business models of the industry. Thus, those that develop branding and companies capable of change will be most successful. However, the same challenges will be faced by consumer electronics companies that produce computers, televisions, DVD players and other household electronics as other consumer goods companies. Considering innovation, differentiation and flexibility are important because both are critical to the survival of the company in the consumer electronics market. Hence, the growing consumer demand for electronic items must depend mainly on the rapid price drop and improved functionality provided by convergence.
As people would mostly depend on the convenience of these devices, increased consumer demand should be expected in the future. The current financial crisis may have affected the consumer electronics industry at present, which has shown a decline in consumer demand for such products. Nevertheless, it may regain its momentum eventually due to the imminent falling of prices in the market.
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