Introduction
The human race has improved the way of day-to-day handling activities with the ever-changing technological advancements. People continued to abandon the common and simple tools and equipment and replaced them with technologically advanced gadgets which make work more manageable and are faster and effective. Devices such as refrigerators and vacuum cleaners have made cooling and cleaning processes simpler, quicker, and more functional. Thus, the U.S. household industry is divided into product, region, and distribution channels. In terms of the items, the induction cooking technology is fast gaining a larger market size due to the rise in global fuel prices. Many customers depend on specialty stores. This paper will elaborate on the U.S. Household Appliance Stores industry.
Description of the U.S. Household Appliance Stores Industry
A household appliance refers to a device that assists in executing household chores like cooking, food processing, cleaning, and laundry. The composition entails household items such as ovens, refrigerators, hairdryers, dishwashers, electric razors, vacuum cleaners, irons, room air-conditioners, coffee makers, sewing machines, and microwave ovens (“2017 NAICS Definition,” n.d.). Even though the consumers were well conversant with the product, the repeat purchase is still low. The use of household appliances is fast gaining the approval of more clients due to the quality they offer and their durability.
The number of household appliance stores keeps rising, with many retailers opening outlets throughout the country. Over the years, the leading appliance seller in the U.S. has been Sears Holdings. It is used to command approximately 40 percent of the total market share, with its premiere Kenmore brand taking the largest portion (Duprey, 2017). However, the company was overtaken by its main rival in the industry, Lowe’s, in 2013. Later on, in 2016, another opponent named Home Depot overtook Sears, which then became position 3. The three retailers command a whopping 58 percent of all the appliance sales in the United States. The market share of the retailers is expected to increase shortly due to the adoption of online marketing services. Clients can now order items online and choose a more convenient delivery made to their premises.
Microeconomic Variables in the Household Appliance Stores Industry – Market Size
The market size of household appliances in the U.S. was estimated at $43.34 billion in 2016. The factors contributing to the rising use of household appliances include the changing lifestyle and the increasing number of nuclear families. The continuous growth of the industry’s market share can also be attributed to the induction of cooking technology amongst many households. The sector has experienced significant growth over the years because the devices on sale are enhanced with smart sensors and can also be controlled by mobile applications. The Market share is illustrated in the graph below.
How the Government Might Impact the Industry
The federal government and the governments of various states in the U.S. apply several mechanisms to control the Household appliances industry (“U.S. Household Appliances Market Share,” 2018). The most notable is the introduction of government subsidiaries in rebates and tax credits which enable manufacturers to produce smart household appliances at affordable prices. The incentives also allow the manufacturers to establish energy-sufficient technologies to prevent massive spending on electricity and other energy sources bills. The result of these intervention approaches is that clients will be willing to make more purchases, hence improving the sales volume of the household appliances.
References
2017 NAICS definition. (n.d.). Unites States Census Bureau. Web.
Duprey, R. (2017). Guess who’s about to overtake sears in appliance sales. The Motley Fool. Web.
U.S. household appliances market share. (2018). Grand View Research, Inc. Web.