If you really want to buy some tech product can visit sales of technology products like have boomed since the led to shutdowns, quarantines and work from home policies starting in March? With the holidays fast approaching and the virus continuing to spread, analysts predict that the fourth quarter will see “historic growth” in tech sales, particularly in e-commerce.
In the fourth quarter of 2020, tech sales are expected to increase 18% over 2019’s Q4, which saw only 4% growth compared with 2018, according to a Wednesday report from analyst firm The NPD Group.
Tech products associated with working, learning and staying entertained at home dominated the second quarter of 2020, with high-growth categories including products such as electronics, mobiles, smartphone, iPhone, Samsung, tablet, laptop, speakers, headphones the product found here. As we head into the holidays, NPD Group analysts said they expect customers to begin purchasing items that are more “wants” than “needs,” like TVs and noise-cancelling headphones.
Most of these tech sales are coming from e-commerce, the report found. In the second quarter, 69% of consumer technology sales occurred online, up from 48% the year before. That number is expected to remain over 60% in the coming months. In addition, buy-online and pick-up-in-store purchases accounted for about a quarter of online tech sales in the second quarter.
“Black Friday lines won’t disappear but we expect lines of consumers waiting for store openings will be replaced by long queues of cars eagerly waiting for Buy Online, Pickup Curbside purchases to be placed in their vehicle,” Stephen Baker, vice president and industry advisor for The NPD Group, said in a press release. “As we head into Q4 and into 2021, we’re forecasting technology sales will remain strong as the pandemic has renewed recognition of the critical value of technology in the modern lifestyle, sped-up product upgrade cycles and created larger installed bases that will benefit the industry moving forward.”
But looking ahead, tech expert Tim Knapton reckons there is still plenty of underdeveloped growth areas that will move to the forefront as the sector matures.
For example, as CEO of TechVoyage (an advisory firm connecting tech businesses with sophisticated investors), Knapton is working with two companies developing solutions to improve e-commerce fulfilment.
“If you look at eCommerce prior to Covid-19, it was probably growing at rates in the low 20s (per cent). But the pandemic has accelerated that — depending on segment or geography — as high as 400pc right now,” Knapton told Stockhead.
“So there’s a huge demand surgeon one side. But I still think the industry can be much more sophisticated around supply.”
He highlighted that in terms of distribution channels, the market had recently crossed the tipping point where mobile commerce (m-commerce — transactions via phone) now took up the biggest slice of the e-commerce pie.
“Over half of all online sales are now transacted via phone. So that market for convenience, — whether it’s sophisticated apps, chat bots, VR and AR or more seamless payments — those are the layers of commerce and tech that are driving the whole thing forward,” Knapton said.