Future Trends in HRM

The Retail Market for Audio Equipment

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Industry Definition

Companies in this industry sell consumer audio equipment and components, parts and accessories for such equipment. This report shows the size of the retail market for this product and includes sales from all major retail channels, including specialty stores, general merchandisers and internet retailers. Sales of commercial or industrial audio equipment are not included in this industry.

Major Players

1. Amazon.com Inc.

1. Best Buy

Main Activities

The primary activities of this industry are:

1. Retailing wireless and media streaming systems

1. Retailing MP3 player speaker systems

1. Retailing HTiB Systems

1. Retailing home and clock radios

1. Retailing other consumer audio equipment products

The major products and services in this industry are:

1. Components

1. Bluetooth speakers, radios and other

1. Multichannel audio equipment

Supply Chain

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Products & Services Segmentation

Major Players

SWOT

Executive Summary

Driven by growth in disposable income and housing, the Retail Market for Audio Equipment is expected to grow at an annualized rate of 3.1% to $23.0 billion over the five years to 2019.

During the five-year period, the number of households is estimated to increase an annualized 0.8% to 128.5 million, representing a consumer base ripe for new audio equipment such as surround-sound systems or soundbars for their new homes. Moreover, disposable income has also risen over the past five years and is expected to accelerate in 2019, helping to boost industry revenue an expected 4.3% during the year.

New technologies have simultaneously provided opportunities and challenges for audio equipment retailers. Audio equipment quality has improved and such equipment is increasingly compatible with other electronics, benefiting industry operators. Bluetooth-enabled speakers were introduced to the market in recent years and the ability to connect a high-capability speaker to a smartphone or a computer through Bluetooth has become much more commonplace during the five-year period, as streaming services have become ubiquitous. Conversely, consumer electronics, cars and other products have improved built-in audio systems, making audio equipment an increasingly discretionary purchase. Most notably, technology has brought about a rise in e-commerce and its prevalence has led to an influx of audio equipment e-tailers. Online retailers benefit from lower overhead costs and an ability to competitively price products. As a result, brick-and-mortar sales have lagged in recent years and forced many smaller players to close up shop. The number of enterprises is consequently estimated to rise at a relatively moderate rate during the five-year period. With online stores comprising a greater share of industry operators, profit has consequently grown as e-tailers have lower overhead costs and virtually unlimited shelf space, contributing to higher profitability than traditional retail outlets.

Furthering profit growth moving forward, disposable income and e-commerce sales are projected to continue rising over the five years to 2024, at annualized rates of 1.5% and 20.1%, respectively. Consumers are expected to loosen their purse strings as a result of higher disposable income, especially as online vendors make buying audio equipment increasingly convenient and affordable. IBISWorld forecasts the industry will grow an annualized 3.1% to $26.8 billion over the five years to 2024.

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Historical Performance Data

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Outlook

The Retail Market for Audio Equipment is expected to expand over the next five years as rising e-commerce sales and disposable income contribute to retailer success.

Annualized growth in the number of households over the five years to 2024 is projected to raise the overall supply of consumers seeking to outfit homes with industry products. Home audio systems are the largest product segment in the industry and command the highest price point. As household figures expand during the five-year period, more consumers will be seeking to furnish new homes with newer, more technologically advanced home audio equipment, with an increasing focus on interconnectivity. Additionally, per capita disposable income growth is expected to accelerate during the five-year period, giving more consumers the ability to make discretionary component purchases. Overall, these factors are expected to lift industry revenue at an annualized rate of 3.1% to $26.8 billion over the five years to 2024, including growth of 3.6% in 2020.

Technology boosts profitability

Consumers are expected to shop for new audio equipment due to new technologies, which are increasingly enabling consumers to integrate home audio systems with online content and mobile devices, as well as older technologies.

However, built-in audio functionality on many devices also competes with audio equipment retailers because it makes their products increasingly discretionary. Nevertheless, this trend is expected to contribute to industry success by shifting demand toward high-end audio equipment that is more profitable to sell. However, industry profit, measured as earnings before interest and taxes, is forecast to slightly decline to 4.4% over the next five years due to price-based competition.

More retailers

Over the next five years, the average industry retailer is more likely to be owned by a large company but operate in a smaller space.

Large brick-and-mortar retailers such as Best Buy Co. Inc., Walmart Inc. and Target Corporation are opening smaller stores, especially in urban areas, to better compete with convenient online stores. Meanwhile, more retail locations are expected to add audio equipment to their shelves as brands such as Bose and Beats by Dre continue to employ new marketing strategies and target new demographics.

Likewise, the number of e-tailers is projected to continue growing as e-commerce increases. Over the next five years, the number of enterprises is projected to grow at an annualized rate of 4.5% to 171,905 companies, with the number of retail locations increasing at the same pace. E-tailers are expected to comprise an increasing part of the businesses selling smaller items, such as headphones, which is leading to a declining number of employees per retailer. Additionally, establishments are forecast to increase at an annualized 4.3% to 195,479 locations, which is slightly lower than the previous five-year period due to the proliferation of online retailers. Furthermore, traditional brick-and-mortar companies that also operate an online platform are shifting their focus away from their storefronts and closing operations to invest more in their online functions.

In particular, the headphone product segment has become increasingly trendy and contributed to the rise in audio equipment retailers in recent years. Headphone manufacturers have invested in marketing over the past five years to advertise products such as limited-edition headphones or headphones designed to target niche consumers. Some headphone manufacturers and retailers have launched marketing campaigns that use celebrities to market its headphones. Beats Electronics LLC, a subsidiary of Apple Inc., has had celebrities such as LeBron James and Justin Bieber endorse its products. Additionally, Skullcandy Inc. has marketed itself toward the extreme sports market by sponsoring professionals in a variety of sports, such as snowboarding, skiing, skateboarding and surfing. Various retailers, from mass merchandisers to convenience stores, have reacted to rising consumer demand and are increasingly expected to sell headphones and other small audio products or accessories. Consequently, employment is forecast to rise at an annualized rate of 3.6% to 801,285 workers.

Industry Life Cycle

The life cycle stage of this industry is    Mature

LIFE CYCLE REASONS

1. The industry's product range is stable

1. The industry serves established markets

1. The industry's contribution to the economy is forecast to grow in line with the overall economy

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Products & Services

Multichannel home audio systems

Multichannel home audio system is the largest product segment and accounts for an estimated 48.0% of industry revenue in 2019.

This segment is differentiated by the packaged nature of its products. Products include home-theater-in-a-box (HTiB) systems, which often include some variation of a multichannel amplifier (which includes a surround-sound decoder, a radio tuner, and other features), speaker wires, connection cables, remote control, surround-sound speakers and a low-frequency subwoofer. More recently, this segment has seen growth in the sales of wirelessly connected home audio. Brands like Sonos have successfully brought to market speaker setups that connect to individual control panels and smartphones to connect an entire home's audio to a single source. As these setups are often sold in a bundle, they are included in the multichannel audio equipment segment. Not all of the products are sold in full bundles, but many speaker systems are sold that include connection cables, audio interfaces and tuners. When they are purchased in this fashion, they are considered part of this segment. When additional speakers are components are purchased to add into existing systems, they are considered individual component purchases. Items in this segment are often much more expensive than other segments, as they are purchased in a set. Home theater audio systems, a popular product in this segment, are much more expensive than individual speakers, which illustrates the segment's high price point. during the period, this segment has increased in popularity alongside the emergence of e-commerce in the industry. As these products are often very expensive, customers are more likely to price compare to find the best deal. Price comparison is often easier online, where a variety of selections from different manufacturers can be sorted by capability and price.

Bluetooth speakers, radios and other equipment

Bluetooth speakers, radios and other equipment is the second-largest segment in the industry and is estimated to account for 29.1% of industry revenue.

Products in this segment are often standalone products that do not exist within a home audio entertainment system. This includes MP3 player docking systems and portable speaker systems that are compatible with the MP3 device. Demand for docking systems has grown in line with the popularity of MP3 players; these systems vary in terms of stability, color scheme, function, style and cost. However, all systems enable MP3 users to charge their device while playing music. According to the consumer electronic association, the number of multiple-iPod households is growing; therefore, this segment increased as a share of revenue in the past five years. However, the increasing use of smartphones is mitigating the growth of MP3 players, as smartphones have the capability to act as an MP3 player on top of their other uses. This also includes radios and other equipment. As streaming services have become more popular during the period, radios have fallen in popularity. However, growth in bluetooth speakers has outpaced the decrease in demand for radios and alarm clocks, causing this segment to expand over the five years to 2019.

Individual components

Individual audio components make up the third-largest product segment for the industry, accounting for 22.1% of revenue.

The most demanded products from this segment are individually packaged speakers, subwoofers, tuners, audio interfaces, connection cables and audio components. As these components are often integrated into home audio systems, the rise in bundled packages has adversely affected this segment.

Demand Determinants

Most audio equipment purchases are considered discretionary; therefore, a variety of economic and social factors affect the decision to buy audio equipment.

Discretionary income is one of the major determinants of demand. A rise in disposable income will lead to more purchases, which will increase the need for audio equipment retailers to meet increasing demand. Over the past five years, demand for industry-specific products has increased as a result of consumers purchasing discretionary goods, including audio equipment, due to increases in income levels.

The number of households further affects demand for audio equipment. For example, as the number of households increased during the five-year period, so did sales of home-theater-in-a-box systems. Additionally, demand for products has increased as consumers have turned to e-tailers for discretionary purchases, benefiting the retail sector. As a result, the retail market for audio equipment constantly looks to carry the latest technologies that will further boost demand levels.

Major Markets

Consumers under 34 years of age

Younger consumers are the smallest market for industry operators.

This age bracket can be broken down into two age groups: consumers under 24 years old and consumers between the ages of 25 and 34. Consumers aged 24 and younger account for the smallest share of industry sales, estimated to represent 9.7% of the total market. Individuals in this age group typically have limited disposable income and live with relatives or in apartments with roommates, restricting their ability and necessity to make big-ticket purchases. Nonetheless, these consumers are often very aware of changes in technology and constantly demand new product developments from the industry. Over the past five years, this age group has shrunk as a proportion of industry revenue because this group has increasingly shopped online for their computers and audio equipment, directing business away from industry operators.

Over the past five years, an increasing proportion of consumers aged 25 to 34 have moved in with their parents or in rental housing, which tends to come fitted with appliances. While these consumers tend to have less income than older consumers, they are still willing to spend on electronics for entertainment, particularly mobile devices. This age segment makes up an estimated 14.7% of total industry revenue in 2019.

Consumers between the ages of 35 and 54

Consumers between the ages of 35 and 54 are estimated to represent the largest market segment for the industry, accounting for 39.1% of revenue.

The majority of consumers in this category are employed individuals with steady incomes. They are able to freely spend on big-ticket items. In addition, consumers in this group typically have their own families and homes, making them an ideal market for the industry. Consumers in this segment purchase items across this industry's product spectrum, but are more apt to purchase more expensive home audio systems than younger consumers. Over the past five years, as unemployment has decreased and consumer sentiment has risen, consumers in this age group have ramped up purchases of big-ticket items.

Consumers aged 55 and older

Consumers between the ages of 55 and 64 are expected to account for 19.5% of industry revenue.

People in this age segment are often in their peak earning years and have relatively high disposable incomes. Small purchases that require minimum disposable income dominate industry purchases made by this market. Consumers in this group often replace old, existing equipment before entering retirement, leading to this segment's relatively high share of revenue.

Consumers aged 65 and older make up 17.0% of the industry's market. Most of these consumers have entered retirement and, therefore, have lower disposable incomes than those in the younger, working demographics. In addition, these consumers have homes that are well equipped with appliances, and they are not as sensitive to technological changes, so they often opt to continue using old equipment. Consumers in this demographic stand apart from the other market segments in that they are less likely to shop online compared with their younger counterparts, specifically those between the ages 18 and 34.

Exports in this industry are    Low  and Steady

Imports in this industry are    Low   and Steady

The Retail Market for Audio Equipment's service-based nature limits the opportunity for international trade. The industry records no import or export revenue. While trade does not apply to the industry, retailers display some degree of globalization through the ownership of foreign holdings.

Business Locations

The spread of establishments within the Retail Market for Audio Equipment is concentrated mostly throughout the Southeast and West regions, generally corresponding with the population and high levels of consumer demand. Additionally, audio equipment retailers tend to locate in areas of high demand for audio products.

The West region accounts for the largest share of industry establishments at 24.7%. The largest major player, Amazon, is headquartered in the West, as are many other industry operators. Additionally, movie, music and TV production in concentrated in the West, specifically in California, which is home to 18.0% of industry establishments. The Southeast is project to account for the second-largest portion of industry establishments at 21.3%. Further, the Mid-Atlantic region accounts for a relatively high share of industry establishments at 17.2%. The Great Lakes will account for 11.7% of industry establishments as this region is home to a growing metropolitan area.

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Market Share Concentration

Concentration in this industry is    Low

Concentration in the Retail Market for Audio Equipment is low, with the two largest companies accounting for 33.9% of industry revenue in 2019. While the low barriers to entry for online stores have enticed several new entrants within the e-tailer space, larger brick-and-mortar companies are looking to expand their footprint in nearby areas where they can add value and turn once-struggling operations into profitable ventures. Smaller audio equipment retailers operate locally and provide services to a small segment of the population, while larger retailers such as Best Buy Co. Inc. and online companies such as Amazon.com Inc. can reach a large segment of the population. As these companies expand their reach and brand loyalty, their revenue has grown faster than the industry at large, which has bolstered market share concentration during the period. However, the high number of overall operators and fragmented nature of much of the retail proportion of the industry has kept concentration low.

Key Success Factors

IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:

Having a clear market position: Consumers should be able to clearly associate a brand with the product being sold.

Ability to control stock on hand: Operators should ensure adequate stock controls, which will help reduce inventory costs and increase stock turns.

Having links with suppliers: Products this industry sells often have high brand recognition. Stores must have links with suppliers of such brands to generate high sales.

Ability to accommodate environmental requirements: Since there are many types of audio equipment products available, operators should aim to stock equipment that will appeal to all buyers.

Cost Structure Benchmarks

Basis of Competition

Competition in this industry is    Medium   and the trend is  Steady

Internal

The Reatail Market for Audio Equipment experiences a high level of competition, which is a result of moderate market share concentration and low barriers to entry.

Industry operators compete on several factors, including price, quality and product availability. Given the homogeneity of many industry retailers, price is a significant basis of competition. Price competition increased during the recession as more participants lowered prices to generate demand. That said, if a consumer believes a product to be high quality, price will become less important. Thus, pricing is the most critical competitive factor for retailers of low-grade, generic brands.

Product availability is another basis on which industry companies compete. For example, according to Nielsen Holdings Inc., an estimated one-quarter of households in the United States have a smart speaker. Amazon, the largest company in the industry, manufactures and sells its own smart speaker called the Alexa. Additionally, the Pew Research Center reported that 40.0% of US adults owned an MP3 player in 2015 (latest data available). Therefore, retailers that stock top audio equipment products and stay up-to-date on the latest audio products are likely to have a competitive edge.

Companies further compete on brand recognition, with many consumers preferring to purchase goods from established retailers. Similarly, industry operators can further distinguish themselves by developing a good reputation; a company known for retailing high-quality audio equipment can benefit from repeat customers and word-of-mouth referrals.

External

The industry experiences additional competition from external competitors, including audio equipment built-in to automobiles, computers and TVs.

Generally, these features can reduce demand for audio equipment that retailers sell. In response, many audio retailers have integrated audio into their video displays, sending the message to consumers that the home entertainment experience can be enhanced with nonstock audio components.

Barriers to Entry

Barriers to Entry in this industry are    Medium   and the trend is  Steady

Industry Globalization

Globalization in this industry is    Low   and the trend is  Steady

The Retail Market for Audio Equipment has a low but increasing level of globalization. While many industry companies operate primarily in the United States, some operators are based or have operations abroad. For example, major industry players Amazon.com Inc. and Best Buy Co. Inc. retail both domestically and internationally.

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Major Players

Amazon.com Inc.

Market Share: 23.2%

Amazon.com Inc. (Amazon) first opened its digital doors in 1994 and is one of the largest retailers in the world. The company is headquartered in Seattle but was reincorporated in Delaware in 1996. Amazon currently employs an estimated 647,500 full-time and part-time employees. Amazon is the world's largest online retailer and accounted for $232.9 billion in net sales in 2018 (latest data available). Amazon's operations are segmented in three principal segments: North America; International; and Amazon Web Services (AWS). North American revenue and International revenue are segmented by the region of sales and AWS accounted for services rendered to enterprises, academic institutions, government offices and other operations in need of data, networking and storage solutions. North American segment revenue accounts for the plurality of company revenue, followed by the International segment and the relatively new AWS segment.

Similar to many retail companies, Amazon's business is susceptible to a high level of seasonality, with at least 30.0% of its yearly revenue generated during the fourth-quarter (ending December 31) in each of the past three years. Amazon further segments its revenue by product and service type; however, the segmentation is rather broad. The company reports that online sales account for 52.8% of revenue, while the next-largest segment, third-party sellers, accounted for 18.4% of revenue in 2018 (latest data available). Additionally, revenue generated domestically accounts for more than 65.0% of company revenue. Amazon competes in this industry through its North American segment, which includes all consumer product sales, including electronics, audio equipment, home theater systems and other industry-relevant products.

Financial performance

Amazon has outpaced its competitors over the past five years, with industry revenue rising at an annualized rate of 28.2% to $5.3 billion, making it the largest player in the industry. The company has been able to leverage its business model to drive growth, selling products under the Amazon name and through third-party operators. Amazon has benefited as more consumers shunned brick-and-mortar stores in favor of online retailers, with company revenue rising by double digits over the past five years. The company credits its ability to lower prices for customers by leveraging purchasing power and offering shipping deals with growth in electronics. In terms of industry products, the low prices provide an advantage to customers, but the company's breadth of products and reviews provide a resource unmatched by any other industry company. The company offers products appealing to a wide variety of customers, ranging from everyday buyers to advanced audiophiles, which has been reinforced each year as the company's electronics product offerings have grown in size each year.

Amazon.com Inc. (US industry-specific segment) - financial performance*

Best Buy Co. Inc.

Market Share: 10.7%

Headquartered in Richfield, MN, Best Buy Co. Inc. (Best Buy) is a specialty retailer of consumer electronics, home office products, entertainment software and appliances that also provides related services. In fiscal 2019, year-end January, the company operated 1,238 large- and small-format brick-and-mortar retail stores worldwide and employed more than 125,000 workers. Of those stores, 1,026 are located in the United States and operate under a variety of brand names, such as Best Buy, Best Buy Mobile and Pacific Sales. As of fiscal 2019, the domestic segment, which comprises the company's US stores, call centers and online operations, accounted for more than 91.0% of consolidated sales. The international segment spans operations in Canada, Europe, China and Mexico and accounts for a small portion of the company's reported revenue.

Best Buy breaks down its reported revenue into five segments: consumer electronics, computing and mobile phones, entertainment, appliances and services. Computing and mobile phones make up the largest segment, accounting for 44.0% of domestic revenue in fiscal 2019. Desktop and laptop computers, tablets and mobile phones and accessories are the staple products in this segment. The company's increasing focus on high-margin mobile products has driven demand for this segment. The consumer electronics segment accounted for 33.0% of revenue in fiscal 2019, bolstered by high demand for ultra-high-definition TVs, despite depressed Blu-ray and DVD player sales. Entertainment sales account for the fourth-largest segment for Best Buy, at an estimated 8.0%. This segment has taken a hit over the past five years as streaming services have become more popular and physical media sales have plummeted. Appliances accounted for 10.0% of revenue in fiscal 2019 and services accounted for the remaining 5.0%.

Best Buy has recently attempted to shift its focus from its large-format stores to smaller stores with merchandise focused on specific, high-margin product segments, as a part of its profit-invigorating Best Buy 2020 plan, which incorporates the Renew Blue Phase Two initiative. This plan was put in place to eliminate, simplify and restructure certain operations and teams. Best Buy 2020 focuses on the customer experience and expanding specific key product categories. Additionally, Best Buy intends to accelerate growth in its international segment, specifically in Canada and Mexico.

Financial performance

Best Buy's industry-relevant revenue is expected to grow at an annualized rate of 2.1% to $2.5 billion over the five years to fiscal 2020. Despite rising competition from online and discount department stores, the company has benefited from increasing disposable income and consumer sentiment. Best Buy has been able to leverage its economies of scale to offer low prices that can compete with those of its competitors and keep revenue high. The increasing focus on the company's website has also boosted Best Buy's online presence, appealing to audio equipment buyers that use the internet to compare prices and reviews before buying.

Additionally, the company generated cost reductions of $265.0 million in fiscal 2019, bringing the cumulative total close to $500.0 million. Best Buy has focused on its multiyear productivity program, Renew Blue and now Best Buy 2020, and enhanced relationships with key suppliers, such as Samsung, to open Samsung stores-within-a-store called Samsung experience shops. The company developed a similar relationship with Microsoft Corporation's Windows to set up stores within a store. These smaller stores often sell Bluetooth speakers and other audio equipment, and this focus on these niche retail experiences has boosted the company's relevance in this industry.

Best Buy Co. Inc. (US industry-specific segment) - financial performance*

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Capital Intensity

The level of capital intensity is    Low

Technology & Systems

Potential Disruptive Innovation: Factors Driving Threat of Change

The most relevant technological disruptor affecting the Retail Market for Audio Equipment is the advancement of the smart phone.

While these devices have existed for a long time, they are becoming more advanced and used for much more than just calling and texting. With operators such as Spotify Technologies SA and Apple Music, individuals are no longer purchasing separate devices to listen to music, podcasts and books because they can do all of these things from their smart phones. These devices are only getting more advanced and are increasingly able to do more and more, and as a result are having a significant impact on the demand for industry products.

The level of technology change is    Medium

Although there is little technological change that directly pertains to the Retail Market for Audio Equipment industry, the technological advancements within the retail sector have affected the industry's players.

Notable changes include the introduction of computerized inventory management systems and updated handheld scanner technology. Specifically, new handheld scanner technologies, such as touch screens with better screen resolution, improved battery life and scanning capabilities and Wi-Fi, have improved inventory management by reducing out-of-stock and excess in-store inventory issues.

At the manufacturing level, the continuous innovation of audio equipment has benefited the retailers. Over the past five years, audio equipment manufacturers have introduced a variety of products into the market that have become high sellers for industry operators. Soundbar systems with house-wide connectivity functions were introduced during this period and have become a staple product for many operators. Additionally, Bluetooth speakers were a high-end, premium product at the beginning of the period, but technology upgrades and mass production have made them a more affordable and widely disseminated product. Sales were minimal at the beginning of the period, but the Consumer Technology Association estimated that Bluetooth and Wi-Fi-enabled speakers accounted for more than 60.0% of total speaker units sold. Furthermore, manufacturers are constantly trying to improve system performance and enhance sound quality of audio products. Therefore, the ability of an operator to stock new products and follow trends in audio equipment is paramount to industry success, even though the technology change is not technically accounted for in this industry itself.

Revenue Volatility

The level of volatility is    Low

The Retail Market for Audio Equipment has been relatively stable over the past five years.

Most of the products retailed by industry operators are discretionary and trends in consumer spending weigh heavily on the success of the industry. Over the past five years, consumer spending has risen each year since 2014 and revenue has followed suit, experiencing growth almost every year during the five-year period. Product life cycles also help moderate volatility in this industry. Each year, new products are introduced into the market, often appealing to early adopters that can afford the higher price point often associated with newer products. With each new generation that comes out, price points for the previous generations fall, enabling more consumers to afford the product. As innovation in this industry is nearly continuous, new consumer markets are being opened up for different products relatively consistently, which ensures some revenue stability, given growth in macroeconomic indicators. As a result, industry revenue decreased as little as 0.1% in 2016 and increased as much as 4.9% in 2017.

Regulation & Policy

The level of regulation is    Light   and the trend is  Steady

The entire Retail Market for Audio Equipment must adhere to states that have enacted their own antitrust laws to ensure that the general public is provided with the best prices, quality and choice.

The federal anti-trust laws protect free competition through regulating unlawful business practices, such as banning monopolies and price discrimination, prohibiting conspiracies to restrain trade and providing some protection to independent retailers from vertically integrated companies.

Furthermore, the Occupational Safety and Health Administration have instituted numerous employee protection programs that govern and evaluate the safety of employees. Other general modification of regulatory restrictions contends that store owners must also adhere to the provisions of the Americans with Disabilities Act of 1990, which requires stores to be accessible to disabled customers. There is, however, no specific regulations that pertain to this industry.

Additionally, online operators are affected by the Streamlined Sales and Use Tax Agreement organized by the Streamlined Sales Tax Governing Board. The agreement requires online retailers to collect sales tax from customers living in state that have passed the agreement, regardless if the retailer has a physical presence within the state. In June 2018, the Supreme Court ruled that state-imposed internet sales tax is legal. However, since the legislation was passed so recently the effects on online retailers in the industry has yet to be seen.

Industry Assistance

The level of industry assistance is    None   and the trend is  Steady

The Retail Market for Audio Equipment does not receive any assistance.

Tariffs may be applicable to inputs used in audio equipment supplied by this industry, but they do not have an effect at the retail level. Retail operators purchase goods from importers and wholesalers after the tariff has been applied. Additionally, operators are represented by the Consumer Technology association (CTA). The CTA, established in 1924 as the Radio Manufacturers Association, represents small and large businesses in the consumer electronics industry and recently just introduced a new membership category specifically designed to help start-ups.

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Industry Data

Annual Change

Key Ratios

None available.

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