Best Buy Expects More Revenue: Appliance is the new Trump Card

Best Buy Co Inc. is keeping their finger crossed as they bet on the appliance sales. The company is expecting a significant return by using their new trump card, appliances. Market research experts explain that appliance buying is the new emerging trend that is creating quite a buzz in the market.

According to the Reuters, the CEO of the company cited "The first phase was 'Don't die,'" Joly told Reuters in a recent interview. "Phase two was improve what we have, and we have clearly done that. Now we are in a position where we look to the future and say, 'How do we grow?'"

Home improvement segment is doing great nowadays and being considered as the fastest growing field. Best Buy is taking risks at the right time when appliance sales market is flourishing. As per statistical analysts' study, the company has already started experiencing growth just by altering the presentation and mix of appliances.

Needless to say, the opportunity to earn more profits through this strategy is possible. Another interesting fact about the popularity of appliance sales is the advent of EMI scheme in the Indian market.

As per the EconomicTimes report, "Indian consumers often prefer installment plans to finance bigger purchases. Known as equated monthly installments (EMI), they are typically provided on a floating-rate basis, so consumers benefit from falling loan rates."

The Gen-Y people love spending money on appliances to make their life better compared to older generations. Today's generation prefer to splurge their income on premium home improvement products. Appliance category is now helping to recover the not-so-good economic conditions of the industry.

On a different note, the marketing trick of promoting the home improvement products by celebrities worked out well for some brands. For instance, cooking appliance categories are witnessing growth by capturing the consumer interest with Chef and Celebrity partnership.

The appliance segment is one of the prime sectors experiencing huge demand both in eCommerce and in the traditional market.The volume of sales growth will be higher for small appliances for now and years to come compared to major ones.

The investors believe that now is the high time to keep the bet on Best Buy. As the market was going through turmoil in recent past, people have become more cautious and careful.

The NASDAQ reports suggest a 10.65% growth in earnings of the company annually over the next five years. Not just that, Best Buy is expecting a 2.72% increase in earnings this year over their last year's revenue. The analysts are forecasting an 8.7% growth in next year's earning over this year.

Major appliances will also experience growth gradually once people start replacing their age-old products with the new ones during the home renovation. Obviously, Best Buy took the right decision only after observing the sudden growth in small appliances.