Connect With Us
If you’re a regular reader of ERT magazine, you may have noticed a new addition in 2024. Stuart Tickle, Managing Director at AWE now has a regular column in which he shares updates from the world of smart home. Here you can read his opening column, which first appeared in the February issue ERT. View the original feature here.”
I was very sad to read of the demise of RETRA. Since 1942, RETRA has been the voice for retailers and service providers in the consumer electronics industry and has been key to our growing success as a supplier to retailers. On a personal level, I would like to thank Howard and the team for everything they have done for the independent retail community and wish them well.
As an independent retailer running my dad’s shop back in the 90’s, I was excited to be part of a vibrant community of retailers and manufacturers selling the latest home tech. We moved on from selling CD’s and midi-systems to laserdisc and surround sound, and then plasma TVs and DVD. Home cinema and home control was becoming a thing.
With the trade side of the business growing, AWE exited retail and evolved into the specialist distribution company we are today, servicing what was then a high-end market of custom installers. It was obvious that traditional retail as we knew it was in decline. ERT was running the Turning Point Campaign under Sean’s tenure, and most knew that something had to change. With my ongoing passion for indie retailers burning, the amazing person that is Tony Dugdale invited us to be speakers at what was then a large and bustling RETRA Conference 2012, in London.
Our presentation slot was after the lunch break. Few knew of AWE in the retail channel at that time and we had a very quiet morning! After we presented, we were busy for the rest of the day answering questions from interested retailers wanting to know more about this installation thing. Our key message was “The Custom Install Profit Opportunity” suggesting adding more value to the box by offering solutions, installed.
With RRP enforcement by then frowned upon, online players were always going to (and do) sell a box cheaper, so margins would tighten. Shops were starting to struggle as the previously independent retail benefits of local stock and fast delivery was eroded. Customer service, demonstration and advice remained important, but it wasn’t enough alone for many to survive.
Fast forward to today and the UK home installation market of residential technology (AKA smart-home or custom install) data for 2023 has just been published by CEDIA, showing:
• The UK market size is £2.9B and growing. That has tripled in 10 years.
• Integrator companies range from <£25k per year to more than £5m in revenue.
• Median project sizes are £18k to £27k, so not all ultra-high end.
• 1 in 4 companies now serve mass-market consumers, up from just 8% in 2021.
Tech UK has also published a different measure of “the connected home” and values the retail B2C sales of relevant products in 2023 at £4.9B alone
Please don’t take this as a soapbox “I told you so” moment from me. It is not. All of you reading this have obviously done a great job as are still here potentially having diversified, perhaps even doing installations beyond white goods. It is just useful context for what my column will be about over the coming issues. I intend to provide thought provoking pieces that you can decide if appropriate to consider for your business. Either way, I welcome your feedback, please email [email protected]
*Sources:
CEDIA UK Professional Smart Home Market Analysis 2023
techUK State of the Connected Home report, June 2023