By: Alex Lashkov
The global electronics market is projected to grow at a steady annual rate of 3-5% over the coming years. However, geopolitical tensions, increasing demand for electronic components, and challenges faced by manufacturers are causing consumer anxiety. Admitad partner network reports that online electronics orders increased by over 15% in the first half of 2024, with US demand surging even more significantly, exceeding 33%.
Detailed Order Analysis
Admitad’s analysis reviewed over 15 million global orders and more than 1.4 million US orders from 2023 through January-May 2024. This study included orders from both global brands and local platforms such as Alibaba, Temu, Acer, Realme, Samsung, OnePlus, Lenovo, Apple, Mivi, and Oppo.
In 2023, US trends already surpassed global market growth. Admitad’s data indicated that American consumers placed 25% more orders in the electronics sector compared to a 9% global online sales increase, spending 13% more than in 2022. However, these numbers are modest compared to the intense demand observed in early 2024. From January to May, Americans made 33% more electronics purchases than in the same period last year, with spending up by 35%. The average order value in the US electronics category now stands at $108.
Shifts in Shopping Behavior
Notably, the share of mobile shopping in the US decreased slightly at the beginning of 2024, from 59% to 55%. Consumers are becoming more deliberate in their purchasing decisions, comparing various options based on features and reviews.
“The global spike in electronics demand is understandable. Last year, some buyers delayed upgrading computers and phones or purchasing new gadgets due to rising prices. Now, it’s clear these price increases are not temporary, and prices are unlikely to decrease soon,” explained Anna Gidirim, Head of Admitad. “Rising manufacturing costs and raw material prices, along with increasing demand from government and large industrial customers, are affecting prices and availability for ordinary consumers.”
In early 2024, heightened geopolitical tensions around Taiwan, a significant hub of the global electronics industry, and extensive media coverage further fueled consumer anxiety. Many buyers expressed a desire to “purchase gadgets now before it’s too late.” Despite high prices, they fear that their options will narrow further and some choices may become unavailable.
Global and US Trends
Globally, Admitad data shows the highest demand increase in the home appliances category, with more than a 20% rise in 2024. This was followed by consumer electronics (+18%), computer and office equipment (+15%), electronic components and supplies (+7%), and phones and telecommunications (+6%). American trends mirrored these global patterns.
Despite the intense demand, consumers are trying to minimize their financial impact. Admitad’s calculations reveal a doubling of the share of US customers using cashback services for electronics purchases. The use of coupons also grew, from 7.6% to 14% of orders.
Effective channels for attracting electronics sales in the US include content platforms, affiliate stores, mobile apps, contextual advertising, and social media, which together account for up to 90% of all orders in this category in 2024. Affiliate publishers, who drive customer orders for brands in exchange for commissions, have seen their revenues grow by over 39% in the first half of the year. Additionally, the rise of sales through financial stores, which offer attractive credit or installment purchase options, has become a notable trend. Due to global price hikes and the desire to upgrade appliances quickly, more customers are turning to these options. The number of orders through these platforms has already doubled globally in 2024.
Potential Risks Ahead
While the current situation looks favorable for electronics brands in the US and globally, with products selling rapidly, there is a risk of market overheating. Excessive customer activity in the first half of the year could lead to an unplanned downturn in the second half. Brands should consider this possibility when planning their activities and budgets.
Published by: Holy Minoza
