According to Futuresource’s latest Consumer Electronics Retail Distribution report, around 10% of all global CE shipments were shipped through the vendor direct channel (i.e. through the vendors’ own physical or digital retail structure). This is driven primarily by the USA, UK and China, three retail landscapes where vendors are keen to control the consumer’s engagement with their products, manage upgrade cycles and drive upsell opportunities. This method of retail has supported Apple’s success since 2001, with the brand growing a strong retail business, which accounted for 31% of net sales in its’ 2018/19 financial year. While other vendors have had a physical footprint for far longer, using their stores to show-room their products and raise brand awareness, the ever-changing retail landscape is posing challenges to established vendors and retailers and forcing a rethink in strategy.

Read More