Retail is an ever-growing industry, with consumer durables making up a large part of total retail sales. But it can be difficult to quantify exactly how much. A consumer durable good, also known as a hard good, is a product that is not consumed after purchase and has a long life expectancy.
This article will explore the definition of consumer durables, what type of products falls within this category, and how much of total retail sales they account for.
What Are Consumer Durables?
A durable good is any item that has a lifespan longer than one year and is often used multiple times over the course of its life. As a result, these goods have naturally higher prices than other items in the market.
Examples of popular consumer durables include electronics such as televisions and computers, household appliances like refrigerators and washing machines, furniture and home furnishings, jewelry, toys, sporting goods, and motor vehicles.
What Is the Difference Between a Durable and Nondurable Good?
The main difference between a durable and nondurable good is their lifespan. Durable goods are typically more expensive and are used over an extended period of time, while nondurable goods are usually less expensive and used up quickly.
For example, a car is considered a durable good, as it is expensive and can be used for many years, while a loaf of bread is considered a nondurable good, as it is inexpensive and consumed quickly.
Durables in Different Retail Sectors
Consumer durables can be found in a variety of retail sectors, including electronics, home improvement, and automotive. In the electronics sector, consumer durables include TVs, computers, and other electronic devices.
Home improvement durables can include furniture, appliances, and kitchen and bath fixtures. Automotive durables include cars, trucks, and other vehicles.
Durables in Grocery Stores
Durables can also be found in grocery stores. Grocery stores typically sell a variety of food products, including canned and frozen goods, as well as a selection of household items such as cleaning supplies and paper goods. Durables in grocery stores can include refrigerators, freezers, and other large appliances.
Durables in Discount Stores
Discount stores are another retail sector where consumer durables can be found. These stores typically specialize in selling a variety of goods at discounted prices. Durables in discount stores can include clothing, toys, housewares, and other items.
Durables in Online Retail
Consumer durables can also be found in the online retail sector. Online retailers typically sell a variety of goods, including electronics, home improvement products, and automotive parts, as well as clothing and other items. Online retailers may also offer services such as installation and repair for certain durables.
Consumer durables are a major part of total retail sales, accounting for over 40% of total retail sales in the United States. The consumer durables market in 2021-22 was particularly robust, with a market share of around $200 billion. This equates to an impressive 8% growth over the previous year, and puts the sector in an excellent position to expand further still.
In terms of specific product categories, refrigerators and washing machines registered the strongest growth with a whopping 11% surge in sales, followed by televisions and air conditioners with 10% and 9% increases respectively.
Robust consumer demand also led to strong sales in furniture and home improvement products, with revenue reaching $17 billion – up 6%. Small appliances like vacuum cleaners saw better than expected results too, increasing their share of the consumer durables market by 2%, to $9 billion.
Audio equipment also performed well this past year, with sales reaching a record high of $8 billion – an increase of 5%. It’s clear that consumer durables are playing an increasingly important role in our everyday lives!
Trends in Consumer Durable Purchases
Consumers tend to purchase different items at different times depending on their lifestyle needs or changes in technology. And they need a banking system for different purposes including loan as well. For example, mobile phones were once considered a luxury item but have become increasingly commonplace due to advances in technology making them more affordable and available.
Similarly, electronics like computers have seen steady growth over time as machines become more powerful while prices stay relatively stable. This is leading consumers to upgrade more frequently than they had in past decades when the cost was prohibitively expensive even if performance was significantly better than older models.
Implications For Businesses
Businesses must monitor trends in order to adjust their product offerings to meet consumer demand. Failing to do so can put them at a disadvantage compared to competitors who may offer newer products with better features or prices.
Additionally, businesses should factor in how economic conditions may affect customers’ purchasing power. Customers may opt for cheaper alternatives, such as clothing or food, instead of pricier items like durables. If not planned for, this could hurt profits.
Consumer durables make up a significant part of retail sales in the United States. They are items that people use on a daily basis, and often purchase multiple times throughout their lifetime. This category includes everything from clothes to appliances to automobiles.
By understanding what consumer durables are and how they fit into the retail landscape, businesses can better cater to the needs of their customers and ensure that they are meeting all of their shopping needs. Thanks for reading!