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.”
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.”