3 Ways Consumer Electronics Retailers Can Grow

Over the past year, we have all spent more time at home.  The world has shifted to remote working and distance learning.   As a result, many consumer electronics retailers have benefitted from the global increase in demand for computers and laptops.  As consumers spend more on making their homes comfortable, retailers have also seen a revenue lift in other categories like home-theater products and kitchen appliances.

But even though online shopping is likely here to stay, it is not clear what consumer behavior will look like post-pandemic.  There has been an overall shift to more cautious shopping as economic uncertainty continues to weigh on consumers.    Therefore, consumer electronics retailers need to plan how they will operate in an ambiguous environment that includes giant online retailers and leading marketplaces like Amazon and Alibaba.

All players are aggressively competing for share of the buyer’s wallet, which has led retailers to rethink their product catalog  expansion strategy.  It’s no coincidence some of the most successful retailers have expanded their product offerings through a digital marketplace model.   A good example is Amazon, whose product catalog has expanded to more than 12 million products.  Today, Amazon makes up roughly 50% of all online retail spend in the U.S.  To put it in perspective, that’s 5% of all retail spent across the entire country.

Having a broad product catalog that aligns with a retailer’s strategic objective is one approach to accelerating growth.  Consumer electronics retailers can expand their catalog through 3 ways:  bundled solutions, device as a service offerings, and open marketplaces.

  1. More choices through bundled solutions

Consumer electronics retailers must continuously find new ways of meeting customer expectations and create pleasant buying experiences.  Thanks to the overall shift to shopping online, consumers are now demanding easier ways to discover and purchase products from one expansive product catalog.

This means consumer electronics retailers can no longer afford to only operate as a product reseller.  They must consider transforming into a solution provider, bundling their devices with related services like insurance, tech support, data services, and extended warranties.

There are several examples where we see this happening today.  Best Buy, a US-based consumer electronic retailer giant, now offers insurance and support services on top of each device sold as part of a solution bundle at check out.  Similarly, Worten, a Portuguese consumer electronics retailer, recently acquired a smartphone repair services company to provide customers with a bundled offering of mobile devices and repair services.  It’s all about offering an array of choices through bundled solutions to win new customers and increase customer loyalty.

  1. Greater flexibility through Device as a Service offerings

Through device as a service models, retailers can offer laptops, desktop PCs, or other devices, and preconfigure them with productivity and security applications and value-added services on an ongoing basis.  The device isn’t purchased outright by consumers, but is paid based on consumption.  This can simplify the purchase for the customer and provide flexibility, making it easier to buy a device fully configured.  Consumers are increasingly embracing this approach because they value the overall package of devices and integrated services and support.  Should the device break down, the consumer can easily get the device replaced.

The benefits for consumer electronics retailers are equally attractive.  By integrating with various SaaS vendors, retailers can expand their catalogs and sell a complete solution bundle on a subscription basis, allowing retailers to attract a wider customer base.  As an added bonus, when retailers receive the device after the consumer is finished using it, the retailer can refurbish and resell it to new customers several more times over the useful life of the device.

Expanded catalogs from device as a service models  present a win-win for both the customer and the retailer.  For the customer, this results in an easier, streamlined shopping experience.  For the retailer, it leads to greater customer loyalty from a recurring relationship, steady monthly recurring revenue, and an opportunity to maximize returns on device investments.

  1. Broader offerings through open marketplaces

Several retailers have seen significant growth by converting their e-commerce shops into open marketplaces for third party vendors in exchange for a commission.  In this approach, third party vendors can onboard their catalogs, manage orders, and leverage the organization’s existing services and capabilities.

By operating as an open marketplace, consumer electronics retailers can offer customers an expanded assortment of products and services.  This can boost the retailer’s top line revenue as it will benefit not only from marketplace listing fees, but also from the increased traffic and sales that the expanded product catalog will bring.

Several retailers have launched open marketplaces in the last few years including Walmart, Fnac-Darty, and Target.  Instead of selling standalone products, these retailers can offer a wider catalog of products and services through an open marketplace, allowing them to expand their customer base in a given segment, or in some cases break out of their niche and gain access to new audiences.

Expand your catalog with CloudBlue

Economic uncertainty is creating a challenging environment for consumer electronics retailers.  But one thing for sure is the digital revolution is validating consumer preferences for a streamlined buying experience and a broader selection of products and services.

Get in touch with CloudBlue to learn how we are helping consumer electronics retailers offer a wider array of offerings through bundled solutions, device as a service offerings, and open marketplaces.  For additional information, read our whitepaper on how retailers can differentiate their business.  Also check out how retailers can achieve even greater growth by maximizing customer convenience and transform into a subscription-based business.

Read time
Share article
Get the latest expert advice and strategies in your inbox.

Subscribe to our newsletter

Monetize your SaaS subscription business with CloudBlue! Subscribe to our newsletter for expert insights, strategies, and tips to maximize your revenue potential.

By providing my Personal Data to CloudBlue and its affiliates, I agree to be contacted for marketing purposes and I acknowledge and agree to the collection and processing of my Personal Data in accordance with the Privacy Statement.

Mike Jennett, Director of CloudBlue Platform Strategy, is an accomplished business and technology executive. With a deep focus on product development and go-to-market strategy, he plays a pivotal role driving strategic growth and market expansion. Mike’s career is characterized by his adeptness in driving technological advancements and his commitment to leading digital transformations with experience including IDC where he was VP of the Mobility and Digital Transformation IEP practices, and HP where he held numerous leadership roles. Mike’s expertise is also reflected in his published works and contributions to multiple tech publications. Mike holds a B.A. from California Polytechnic University.
Having previously to strategic product management, agile transformations, and user experience in CloudBlue, Taylor Giddens heads the Services & Solutions team where he ensures smooth delivery, operations and solution growth for our partners and customers.

The team includes technical account management, managed services, support, custom solution development, and customer enablement.

Prior to CloudBlue, his resume boasts leadership of some of the world’s largest companies during their digital transformations and marketplace launches. Taylor is a practitioner of servitude leadership when it comes to enabling his team to drive positive outcomes on the road to operational excellence.
Laurens van Alphen, a visionary entrepreneur with over 29 years of internet technology expertise, serves as Director of Technical Managed Services at CloudBlue, responsible for Operations and Delivery of CloudBlue SaaS.

As a Dutch racing champion and car enthusiast, he brings the same drive to the tech realm, steering Keenondots from a managed hosting firm to a global cloud enablement leader. Laurens is celebrated for his outcome-driven leadership, deep industry insight, and passion for balancing business innovation with client engagement.
Lincoln Lincoln is CloudBlue’s Head of Global Sales; having been with the company since November 2017. Leading CloudBlue’s global go-to-market organization, he’s responsible for driving accelerated and sustained mutual growth with CloudBlue’s customers and partners, as well as forming new customer partnerships across the Vendor and Provider ecosystem. As part of CloudBlue’s leadership team he is responsible the organisation’s revenue and continued market leadership by delivering and supporting products, services and solutions to organizations in established and new markets around the world.

Before joining CloudBlue, Lincoln was AppDirect’s Regional Director, Asia Pacific & Japan, responsible for forming, building and leading AppDirect’s business and operations across the APJ geography. He built and led AppDirect’s fastest growing and highest performing region globally within 3yrs.

Before joining AppDirect, Lincoln was EMC’s Practice Manager, Cloud Service Providers, APJ, working with the leading Service Providers to maximise their Cloud Business presence & market success. Lincoln joined EMC in 2007, and has over 20 years’ experience in the IT industry, having been based out of Singapore, Australia and the UK. Prior to EMC, he was in range of sales and channel positions at Symantec and VERITAS.

Lincoln has an Honours degree in Business Administration from Kingston University in the United Kingdom.
Brent Clooney is the Executive Director and Associate General Counsel for Ingram Micro Inc., and lead counsel for CloudBlue.

Brent is a Canadian based corporate lawyer with more than 20 years of experience as a strategic legal advisor both in private practice and as in-house counsel to large multi-national companies. Prior to joining Ingram Micro in 2008, he worked at a well-respected corporate law firm in Toronto, Canada and later served as general counsel for Toshiba Canada. During his 15-year tenure at Ingram Micro, he has held positions of increasing complexity and responsibility, and since being promoted to his current role in 2022, Brent is the legal lead for both Ingram Micro’s Canadian and global cloud businesses, as well as CloudBlue.

Brent holds a law degree (LL.B.) from Queen’s University, a Psychology degree (B.A. Honours) from Lakehead University, and has been admitted to the bar in Ontario, Canada since 2002.
Anurag serves as the Head of Product Management for CloudBlue and is responsible for product direction and driving innovation. His leadership has been marked by a keen focus on customer needs, growing the ISV ecosystem, and ensuring the continual evolution of CloudBlue’s product portfolio.

Anurag joined Ingram Micro in 2017 and has been instrumental in, positioning CloudBlue as an industry leading monetization platform for MSP’s, Telco’s and Distributors. Previously Anurag worked at Oracle and Microsoft where he managed many technology projects and programs.
As VP of Engineering of CloudBlue, Rony oversees the development and engineering efforts of the company. He is a recognized leader with more than 25 years of experience in Technology and Product.

Prior to joining CloudBlue Rony lead the R&D efforts at Tripwire acquired by Thoma Bravo, and Cedexis acquired by Citrix. Rony is a leader with extensive experience in transforming both complex technology problems into products that customers love and disjointed organizations into agile high performing teams.
Coen is a distinguished leader and entrepreneur in the realm of cloud technology. Currently serving as CEO of Keenondots and the Global Director of CloudBlue SaaS. He is passionate about driving innovation, fostering collaboration, and leading high-performing teams to achieve transformative results.

With a background as Managing Director of INTO Cloud and a pivotal role as Director of Products of KPN, he brings a wealth of experience in steering organizations through the complexities of the digital landscape.

Beyond the boardroom, Coen is a marathon enthusiast, demonstrating endurance and discipline in pursuit of both professional and personal goals.
Alyson has over twenty years of experience in demand generation, marketing automation and data management. She is responsible for leading the strategy and direction of the company’s brand, performance, and digital marketing.

Prior to CloudBlue, Alyson served as Ingram Micro’s Director of Global Business Intelligence Marketing Automation driving channel partner campaigns. Her tenure in marketing leadership at prestigious companies such as Western Digital, Ocean Institute celebrates redefining marketing campaigns and building top performing teams based on trust, experimentation, and results.

Alyson resides with her husband and three children in Orange County and is an active volunteer and donor within her children’s sports and education programs.

Darek Tasak is leading Customer Success & Value Creation for CloudBlue. In his role, he looks after CloudBlue customers globally during the entire lifecycle of our relationship: from the initial on-boarding, through in-life account management, always ensuring they build successful businesses leveraging our technology. Additionally, he is also in charge of Partnership & Alliances, as well as Pricing Management for everything we commercialize.

Before CloudBlue, Darek managed Ingram Micro’s Services division for hi-tech customers in Europe & APAC. His prior experiences include also launching and leading pan-European services business for TDSynnex, as well as strategy consulting with Boston Consulting Group (BCG).

As President of CloudBlue, Uddhav is a distinguished leader and visionary with nearly two decades of platform-building experience. He is an industry leader in digital commerce, the subscription economy, and monetization platforms.

Notably, at SAP, he spearheaded the transformation of their platform business into a multi-cloud platform-as-a-service, offering enterprise and developer-friendly subscription models. At Pure Storage, he championed the efforts to successfully disrupt the storage industry by creating revolutionary Storage-as-a-service, AIOps-as-a-service, and Disaster Recovery-as-a-service offerings with cutting-edge features and establishing a sophisticated subscription commerce infrastructure that is channel-friendly.

At CloudBlue, Uddhav guides and empowers businesses to rethink their monetization strategies by unlocking the power of digital ecosystems and marketplaces. CloudBlue provides enterprises with a mature multi-tier, multi-channel marketplace and monetization platform that enables usage-based subscription models and global delivery of Anything-as-a-Service solutions. Uddhav has played a pivotal role in shaping the future of the subscription economy through his innovative thinking and impactful contributions.

Let's talk