SIC 5064 Electrical Appliances, Television, and Radio Sets

SIC 5064

This industry is comprised of establishments engaged in the wholesale distribution of household electrical appliances (such as refrigerators, freezers, dishwashers, and laundry equipment), household and motor vehicle electronic sound or video equipment, and radio and television sets. The industry also includes establishments primarily engaged in the wholesale distribution of household nonelectric appliances (such as gas clothes dryers and gas refrigerators).

NAICS CODE(S)

423620

Electrical Appliance, Television, and Radio Set Wholesalers

INDUSTRY SNAPSHOT

According to the U.S. Census Bureau, 2,896 establishments operated in this industry in 2004 and employed 47,289 employees who earned an annual salary of more than $2.5 billion. The market remained relatively unconsolidated as nearly 67 percent of all electrical appliance, television, and radio wholesale distributors employed fewer than 20 people.

According to Dun & Bradstreet's 2006 figures, the industry's 33 specialties were led by the electrical appliances, television, and radio segment with $17.1 billion in sales while electrical entertainment equipment came in second with $3.9 billion in sales. Major electrical appliances followed with $1.8 billion in sales and segments including high fidelity equipment, motor vehicle radios, and electric household appliances each had sales around $1.3 billion.

Wholesale distributors of electrical appliances, televisions, and radio sets served an industry enjoying constant innovation and new product demand. By the 2000s, the market for these products was dominated by a major shift to digital technology. While this development clearly presented vast new market openings, it also posed tough challenges. Convincing a market highly saturated with its products to upgrade to the latest technology called for aggressive marketing strategies and value-added services. Wholesalers were expected to aid these strategies with services and technological sophistication of their own in order to most adeptly meet their manufacturers' and retailers' needs in the quick-paced marketplace.

CURRENT CONDITIONS

The advent of digital television broadcasts in November 1998 was good for the consumer electronics industry. The Consumer Electronics Association (CEA) reports that about 30 percent of U.S. households purchased digital television sets by the end...