Ensuring Quality Aftermarket Support Amidst CE Brand Consolidation

Brand consolidation in the consumer electronics industry just took
another step forward with the recent announcement that Sharp has agreed to
license its prestigious name to Hisense. Sharp is the latest in a long line of
other manufacturers like Philips, Toshiba, Mitsubishi and Hitachi to enter into
this type of arrangement. With just a handful of global manufacturers now
dominating the U.S. Consumer Electronics market, consolidation could become
even more prevalent.

As electronics manufacturing has shifted from the
U.S. to Mexico to the Asia-Pacific, many powerhouse brands like Zenith, Sylvania
and RCA have gone the way of the VCR. Many overseas manufacturers have since looked
to capitalize on the value of world-leading Consumer Electronics brands to
better penetrate the U.S. market. For manufacturers following this path, it is critical
that they protect the brand value of their new assets by ensuring a seamless
service experience.

While consumers may have loyalty to certain
electronics brands, that allegiance can be tenuous. The first time repair parts
aren’t available or they’re unable to find a servicer, their perception of a
once-coveted brand will likely plummet. With other strong brands ready to step
in as replacements, manufacturers have to stay on their game during the
post-sale period.

Manufacturers expanding in the U.S. should
leverage the service process as a differentiator and compelling reason to retain
brand loyalty. We in the service community must stay attuned to these
consolidations and maintain a role in aftermarket support to help deliver a consistent
service experience.

As long as manufacturers – along with parts suppliers,
warranty claims administrators and service networks – execute as team to
continue providing reliable product support, it shouldn’t matter what’s behind
the manufacturing curtain. With strong backing, the brand will have a much
better chance to retain its quality status in the minds of U.S. consumers.

Beyond the service experience, manufacturers now thriving
in the Consumer Electronics space are well diversified into other product
categories and are “owning the home” from the family room to the laundry room.
When 4k display becomes more mainstream, controlling content will also become a
key competitive factor. 

With competition among Consumer Electronics manufacturers
tightening and the industry contracting in general, the most successful players
are fiercely protecting their brands and aggressively working to gain ever
greater wallet share.