ID :
212239
Tue, 10/11/2011 - 13:38
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Shortlink :
https://www.oananews.org//node/212239
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UAE demand for consumer electronics to remain robust
Dubai, Oct 11, 2011 (WAM) - The UAE's consumer electronics market is set for strong growth with demand for goods and appliances likely to remain robust, a recent analysis by Dubai Chamber of Commerce and Industry has found. UAE sales of consumer electronics are predicted to rise from US$3.14bn in 2011 to US$3.97bn by 2015, according to the Dubai Chamber analysis.
Though, the recent global downturn had an impact on the UAE's consumer electronics market, especially in Dubai, the structural development of the market has remained buoyant.
The increase has been driven by popular electronic devices such as computers, LED and 3G TV sets, 3G mobile phone handsets, smart phones, feature-rich notebooks and Blu-ray format DVD players.
According to the analysis, citing data from Business Monitor International's (BMI) UAE retail sector Q2 report for 2011, in 2010, TV sets, digital camera and VCR Players accounted for about 81% of the UAE's consumer electronics spending, followed by computers and audio video (AV) devices. The demand for consumer electronics goods is likely to remain robust in the coming years, as shown in Table 1 (see below).
Over the last decade, the consumer electronics market has seen exponential growth in the UAE. Each year, the demand for consumer electronics has increased beyond expectations. The upswing in demand has been largely attributed to strong household consumption of Emiratis, expatriate wealth and inflows of tourists to the country. Besides, the UAE's strategic location, which connects it with the Middle East, the Indian sub-continent, Eastern Europe and North African regions, provides favourable conditions for the consumer electronics market to flourish, the analysis states.
Recently, the UAE has seen rapid demand for personal computers, telephone sets, mobile phones, electric appliances and some small electronic gadgets. Though, the bulk of demand is being met through imports, however, in the past couple of years, Dubai and other emirates have started assembling PC's and other electronic consumers goods for domestic utilisation.
The UAE has also started re-exporting consumer electronics products to GCC and African countries. The demand for computers and other durable consumer goods has been growing at a fast pace in some African countries. Given low competition in the region, UAE companies are targeting African countries as a budding market for the consumer electronics goods, the analysis found.
For most UAE consumers, Japanese electronics products are seen as reliable, durable and cost effective. Because of such characteristics, the sale of Made in Japan products is still popular in the UAE. However, Chinese electronics products have gained popularity in recent years. Due to cheap prices and innovative fabrications Chinese consumer goods are rapidly moving to dominate the UAE's consumer electronics market, according to the analysis.
According to some estimates, China is currently leading the UAE consumer electronics market for toys, games, radio cassette recorders and DVD players. In addition to Japan and China, South Korea and Malaysia are some of other countries who have increased their footholds in UAE's consumer electronics market.
The Dubai Chamber analysis also found that shopping events in Dubai such as Dubai Summer Surprises (DSS) and the Dubai Shopping Festival (DSF) are helping to drive Dubai's consumer electronics market. Dubai Summer Surprises is held during June and July, while Dubai Shopping Festival begins in January and lasts until February each year. According to some leading electronics dealers, sales of consumer electronics products have witnessed remarkable growth during the shopping festival days.
On the other hand, the analysis found that retailers of consumer electronics are faced with challenges moving ahead due to the fast changing nature of the technology industry. In order to stay ahead retailers need to address challenges such as low profit margins due to tough competition, changing structures of retail outlets and competition faced by local manufacturers and assemblers from foreign imports. - Emirates News Agency, WAM
Though, the recent global downturn had an impact on the UAE's consumer electronics market, especially in Dubai, the structural development of the market has remained buoyant.
The increase has been driven by popular electronic devices such as computers, LED and 3G TV sets, 3G mobile phone handsets, smart phones, feature-rich notebooks and Blu-ray format DVD players.
According to the analysis, citing data from Business Monitor International's (BMI) UAE retail sector Q2 report for 2011, in 2010, TV sets, digital camera and VCR Players accounted for about 81% of the UAE's consumer electronics spending, followed by computers and audio video (AV) devices. The demand for consumer electronics goods is likely to remain robust in the coming years, as shown in Table 1 (see below).
Over the last decade, the consumer electronics market has seen exponential growth in the UAE. Each year, the demand for consumer electronics has increased beyond expectations. The upswing in demand has been largely attributed to strong household consumption of Emiratis, expatriate wealth and inflows of tourists to the country. Besides, the UAE's strategic location, which connects it with the Middle East, the Indian sub-continent, Eastern Europe and North African regions, provides favourable conditions for the consumer electronics market to flourish, the analysis states.
Recently, the UAE has seen rapid demand for personal computers, telephone sets, mobile phones, electric appliances and some small electronic gadgets. Though, the bulk of demand is being met through imports, however, in the past couple of years, Dubai and other emirates have started assembling PC's and other electronic consumers goods for domestic utilisation.
The UAE has also started re-exporting consumer electronics products to GCC and African countries. The demand for computers and other durable consumer goods has been growing at a fast pace in some African countries. Given low competition in the region, UAE companies are targeting African countries as a budding market for the consumer electronics goods, the analysis found.
For most UAE consumers, Japanese electronics products are seen as reliable, durable and cost effective. Because of such characteristics, the sale of Made in Japan products is still popular in the UAE. However, Chinese electronics products have gained popularity in recent years. Due to cheap prices and innovative fabrications Chinese consumer goods are rapidly moving to dominate the UAE's consumer electronics market, according to the analysis.
According to some estimates, China is currently leading the UAE consumer electronics market for toys, games, radio cassette recorders and DVD players. In addition to Japan and China, South Korea and Malaysia are some of other countries who have increased their footholds in UAE's consumer electronics market.
The Dubai Chamber analysis also found that shopping events in Dubai such as Dubai Summer Surprises (DSS) and the Dubai Shopping Festival (DSF) are helping to drive Dubai's consumer electronics market. Dubai Summer Surprises is held during June and July, while Dubai Shopping Festival begins in January and lasts until February each year. According to some leading electronics dealers, sales of consumer electronics products have witnessed remarkable growth during the shopping festival days.
On the other hand, the analysis found that retailers of consumer electronics are faced with challenges moving ahead due to the fast changing nature of the technology industry. In order to stay ahead retailers need to address challenges such as low profit margins due to tough competition, changing structures of retail outlets and competition faced by local manufacturers and assemblers from foreign imports. - Emirates News Agency, WAM
