Having a strong brand identity matters in the world of consumer electronics.
According to new research from Parks Associates, 71% of consumer electronics buyers only consider one brand when when making a purchase. Factoring into that consideration (or lack thereof) is price (which was cited by 15% of buyers as their reason for considering only one brand), product quality (cited by 10%) and general brand preference (19%).
“Brand strength comes from a variety of factors, like high-quality and disruptive products,” Barbara Kraus, director of research for Parks Associates, tells Marketing Daily. “Of course, marketing plays into that. You have to get the name out there.”
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Categories that had the least amount of competitive consideration were tablets, smartphones and gaming consoles, with 75-80% of buyers only considering one brand when shopping. Conversely, accessories and emerging categories like connected audio systems, virtual reality headsets and smartwatches, had more competitive consideration, with 34-52% of buyers not considering other brand before making a purchase.
"Certain brands have established a loyal customer base that purchases products without considering other options," Kraus says. "Apple has cornered the market for CE shoppers when it comes to smartphones and laptops. For example, 42% of those buying an Apple laptop reported they only considered one product because of brand. By comparison, just 18% of those buying HP laptops settled on a product in advance because of a brand preference."
For a brand looking to break into a CE category, the strategy is simple, Kraus says: build great products that people need (even if they don’t know they need it).
“There’s always white space for innovation, but it’s very hard to defeat a handful of very powerful brands,” she says. “If you don’t have that brand trust, you’re not going anywhere.”