Top 100 Methodology: How We Crunched The Numbers
By TWICE Staff -- TWICE, 5/15/2005
New York — The TWICE Top 100 CE Retailers report ranks the leading domestic CE dealers by sales of consumer electronics.
Sales figures are based on information that was supplied by retailers responding to a 300-dealer survey by TWICE and its new research partner The Stevenson Company. Absent their input, estimates were developed from Stevenson’s internal market tracking surveys (TraQline), industry sizing based on wholesale shipment figures from the Consumer Electronics Association (CEA) and other sources, and average retail price points by product.
All estimates were further refined through the use of public filings with the Securities and Exchange Commission, TWICE industry analyses, retail analysts’ financial reports, published data and other external sources.
Once the estimate was determined to be a reasonable assumption of the retailer’s CE sales, the figure was broken out by product category based on the TraQline surveys.
Sales figures by total and by category for 2004 were then compared to 2003 sales tallies, and adjusted if necessary to more closely track total reported revenue growth.
Businesses must meet the following criteria for consumer electronics retailers to be considered for inclusion in the Top 100 report:
•Sells new products directly to consumers
•Has physical retail store locations, or
•Has a significant online presence
•Sells consumer electronic products as one of its principal lines of business
•Does not offer consumer electronics products primarily to sell its transmission services, i.e. wireless carriers, cable operators, satellite radio/TV providers
•Sells products that are considered consumer electronics products as defined by the CEA (see accompanying charts).
Sales are considered to be the revenue received for the products sold primarily to consumers, including CE hardware and accessories; personal computers, peripherals and software; and video game platforms and software.
Sales of prerecorded music and movies are excluded from the report.
Respondents were also instructed to exclude revenues received for installation services, repair services, rentals, warranties or extended service contracts, as well as sales to businesses, government and education.
Given the first-time collaboration between TWICE and The Stevenson Company, and Stevenson’s proprietary methodology, sales figures within the 2004 Top 100 CE Retailers report represent a new baseline for this annual project, and 2003 sales were revised accordingly.
Stevenson, based in Louisville, Ky., began as the global economic analysis and research department of GE Appliances. Now independent, the market research firm has served the consumer electronics and major appliances industries for the past 11 years by developing market sizing and market share estimates. Its TraQline syndicated quarterly survey of 150,000 shoppers measures retail
purchases of consumer durables and provides estimates of unit and dollar market share and other key measures.
Product Definitions:
As defined by the Consumer Electronics Association, here is a breakdown of what constitutes a CE product and what was included in the Top 100's sales totals.
Consumer Electronics:
Total Audio
Home speakers
Receivers
CD players (home & portable)
Home theater in a box
Pocket and portable radios
Boomboxes
MP3 players
Mini stereos
Clock radios
Headphones
Blank CDs/cassettes
Total Video
VCRs
DVD players (incl. portables)
DVD recorders
Hard-disk recorders
Satellite TV dishes and systems
Camcorders
TVs
TV/VCRs
Blank DVD/VHS media
Total Communications
Cordless phones
Corded phones
Answering machines
Fax machines
Pagers
Cellphones
Personal digital assistants
CB home radios
Video Game Systems
Video game players
Video games
Accessories
Batteries
Cables
Miscellaneous accessories
Mobile Electronics:
Auto speakers
Auto radios
Auto CD changers
Auto amps
Satellite radios
Auto radar detectors
Burglar alarms
GPS
Mobile TVs
Video monitors
Media players (DVDs, VCRs)
Mobile receivers
Information Technology:
Personal Computers
Desktop/notebook computers
Monitors
Zip drives
Optical drives
Printers
Software
Hardware (including cards, hard drives, keyboards, mouse, etc.)
Miscellaneous accessories
Digital cameras
Media
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