Plugging the Electronics Industry into Unified Commerce

The electronics industry is a key player in the digital transformation of our world. From smartphones to smart home devices and wearables, electronics are becoming more and more essential to how we live our lives. The global electronics market is worth more than $1,000 billion, with around $450 billion of that being from telephony. However, this massive level of overall value is not necessarily reflected in growth in the industry. Indeed, that looks like being somewhat under inflation in 2024, and not for the first time this decade. 

Electronics companies have faced a challenging few years. Global supply chain issues have resulted in pent-up demand and frustrated customers. However, the short-term surge that this caused has not been reflected in long-term growth. At the same time, new companies are moving into the space, making it even more competitive. What is required to thrive in this environment?

Exploring Electronics

The global electronics industry is massive in scope as well as value. It includes everything from the design and development of tiny computer chips to the manufacturing and sales of complex consumer goods like smartphones and TVs. It is a massive and interconnected ecosystem characterised by constant innovation. Supply chain issues seem to have settled down, but there are other trends driving the industry, including:

• Strong online sales. Online sales are expected to contribute around one-third of total revenue in this market in 2024. Customers increasingly want faster delivery and seamless buying experiences.
• Rapid growth in connected devices. More and more everyday devices are now part of the Internet of Things, generating huge data streams. Smart home devices are a key growth area, especially in the US, but wearable healthcare devices are also becoming more important. These devices need efficient components and powerful analytics to unlock their full potential and support a hyper-connected world. 
• The growing importance of 5G technology. 5G is integral to a rapid, efficient connection of many devices. The developing 5G network provides high speed and low latency, and the opportunity to blend physical and digital worlds. Coupled with developments in edge computing, enabling processing close to the point of data generation, 5G is being hailed as a genuine game-changer.
• The emergence of other new technology.  It is not always easy to predict what new technology will make a genuine impact. However, artificial intelligence (AI) and augmented reality look like strong contenders, because of their impact on customer experience and future growth in this market.
• The importance of sustainability. As in many other industries, environmental concerns are driving a consumer push for more sustainable practices and products. This includes the use of recycled materials, better e-waste management and recycling, and energy-efficient products.

Overall, the picture is one of ongoing innovation providing new opportunities for electronics companies—but in an increasingly crowded market. How can these companies make sure that they stay ahead of the curve?

Embracing Unified Commerce

The answer lies in seamlessly integrating online and offline channels, and combining these with better inventory management to provide a seamless and frictionless customer experience. For many, this means investing in a unified commerce platform. Online buying is an important contributor in this sector, but this does not mean that electronics companies can afford to neglect brick-and-mortar stores. 

Unified commerce enables a smooth combination of the two, providing a single view of stock, orders, and customer information. It eliminates data siloes and simplifies order fulfillment, supporting faster deliveries and improved product availability—key issues for customers. These platforms also have several other advantages, including: 

• Delivering a better omnichannel customer journey. Electronics buyers research products online, and compare prices. They will look for recommendations on social media, but they also want to see products in-store. Unified commerce platforms enable a seamless experience across channels, supporting stock checking, online ordering, click and collect, and ‘buy online, return in store’. 
• Enabling improved personalisation. Unified commerce platforms collect customer data across channels, enabling a more personalised experience. Customers can be given tailored recommendations or offers, based on their browsing history or previous purchases. This improves customer satisfaction and leads to further purchases.
• Improving inventory management. Unified commerce platforms provide a clear and real-time view of inventory across all locations. Stock levels can therefore be optimised to meet demand, including through transfers to other locations. Pricing and promotions can be adjusted to reflect both supply and demand.
• Empowering in-store staff to deliver better customer service. When sales personnel can see customers’ purchase history, they are better able to recommend suitable accessories or warranties. Unified commerce platforms also enable them to check inventory across locations, and either order in goods or offer alternatives. 

These are clear benefits, but what is the impact on the bottom line? Samsung Turkey has harnessed Akinon’s unified commerce platform to become the highest-selling consumer brand both online and offline. The use of Live Commerce events, for example, increased sales by up to 200% compared with average sales during active hours. 

A Bright Future for Electronics

Implementing a unified commerce platform has some challenges. It needs a significant investment in technology, and staff will also need training. Integrating systems can be complex, and data security is always an issue. Companies also need a suitable omnichannel marketing strategy to take full advantage of the platform’s capabilities. 

That said, unified commerce platforms offer a way for electronics companies to differentiate themselves from their peers in an increasingly competitive space. As the technology evolves, there will be more opportunities to integrate additional features and delight customers even more. With advantages from both improved efficiency and better customer service, it is likely that these platforms will be a key part of the future of the industry. Learn more about Unified Commerce!