Putting the "H" in Hot
Top Selling Technology Products

The national retail channel has experienced a significant slowdown in the growth of technology product sales. The slowdown was noticeably evident in the brick-and-mortar retail channel — sales growth declined consistently through the spring and summer of 2012.

In contrast, online retail sales maintained the yearly growth rate showing a significant increase above last year. Of the following retailers— AT&T, Amazon,  Apple, Best Buy, Costco, Office Depot, Staples, Target, Verizon, Walmart —Amazon was the only one with 3 positive years of growth. The good news is you can still compete and win against all of these outlets.

No generation is more at ease with technology than today’s young people—“digital natives”, who have grown up immersed in a digital environment. 

Where notebook paper and pen may have formed the tool kit of prior generations, today’s students come to class armed with smart phones, laptops and iPads. 

The average merchandise mix of technology products in the ICBA member stores is approximately 20% of the store’s total sales. That is a significant share. The collegiate retail industry is full of challenges but also offers us plenty of opportunity. There are growth segments and niches in all areas of the collegiate marketplace.

Global PC shipments fell last year for the first time in 10 years, while shipments of smartphones and tablets continued to boom. Nationwide, Apple and Samsung are gaining market share in both smartphone (38%) and tablet computing (57%). Stores should tailor their product selection to capitalize on the growth in these segments.

Sales in the cellular accessories are very strong. Most of the volume is in protection/cases. As Apple iPhone and Samsung Galaxy introduce new models, make sure you have the latest accessories. Smartphone cases have become a true fashion item, with consumers purchasing more than one style for their phones.

Available at nuCourse Distribution, OtterBox (Defender Series and Commuter Series) and LifeProof are the leaders for all protective cases. Combined they make up over 42% of the total smartphone case sales in the US today. OtterBox is also available through D&H Distributing along with the Griffin Survivor Series Carrying Cases for iPhone.

As with smartphones, a majority of the sales dollar growth in tablet accessories is in cases. The Incase Book Jacket Select iPad 3/4 Black (MSRP $59.99) from The Douglas Stewart Company is a top seller this year. D&H Distributing reports that the OtterBox Defender Carrying Case for 10.1" tablet is also leading the category in sales.

Consumers say they are buying headphones at roughly the same frequency as they were last year – just under once every two years (every 22 months)*. John Koss, Jr., Vice President of Sales at Koss stated: “People use these products so much every day; there’s such a replacement business out there. And no one buys a single headphone for all uses anymore; they buy one for traveling, one for their workouts, one for gaming.”

Headphones are not just a $10-$30 retail product. Try selling higher end product and you will be amazed by the results.

D&H Distributing offers Sennheiser headphones, with the HD 25-SP II Stereo Headphone (MSRP $29.95), HD25-1 II Stereo Headphone (MSRP $249.95), PXC 250-II Headphone (MSRP$199.95) listed as best sellers for 2013. nuCourse best sellers include Klipsch Image ONE (MSRP $149.99) and Klipsch Image A5i Sport earbuds ($129.99). Douglas Stewart reports that Skullcandy Crusher Over-ear Headphones w/Mic Black (MRSP $99.99).

However, don’t forget to round out your assortment with opening price points. Skullcandy Ink'd Earbud w/Mic Black (MSRP $19.99) and Yurbuds Inspire Female Performance Fit Earbuds (MSRP $29.99) from Douglas Stewart and even the JVC Gumy Headphones (MSRP $9.99) from D&H Distributing are trending well in college stores.

Younger consumers (13-34 years old demographic) spend more on headphones, with a heavy focus on premium styles. Premium headphone ($100+) owners are more likely to own multiple pairs of headphones.* This group is your customer and is in your store daily.

Listening to music on a great pair of headphones is one of the more pleasurable experiences modern technology gives us. However, sometimes you want to let the music fill the room. Wireless speakers allow you to listen to your favorite tunes anywhere.

One area where it’s tough to get great sound out of a small package is in wireless audio speakers. However, the Braven 650 Bluetooth speaker (MSRP $169.99), available from both D&H Distributing and nuCourse, is a top seller and is becoming the new industry standard for Bluetooth audio. You may also want to try the Carbon Audio Zooka Bluetooth Speaker Red ($99.99) from Douglas Stewart.

Thirty-nine percent of expectant buyers plan to spend over $100 on their next wireless speaker purchase.** Make sure your assortment includes a wide selection of product in this price range.

As you can see, much of industry shift is determined by mobile device impacts, with smartphone and tablets leading the way in the development of new tech accessories. The amazing thing about this industry is that manufacturers are constantly bringing new products to market that provide new opportunities for retail growth.

Today, each consumer transaction is becoming more valuable. Find your niche among your student, faculty and staff customers. These vendor partners can be a great resource for your store. ICBA works with them to use their industry and product knowledge and company resources to develop programs and product assortments that will directly benefit your store. 

*Source: The NPD Group / Headphones: Ownership & Application Study, 2012 Update
**Source: The NPD Group / Audio Consumption Study, October 2012.

Written by Marty Duncan, ICBA Program Manager