2012-09-25 08:27:11 - New Consumer Goods research report from Business Monitor International is now available from Fast Market Research

BMI projects that the South African consumer electronics market will moderate in 2012, with estimated growth of 8%. While we acknowledge various vulnerabilities such as high personal debt levels, we hold to our wider view that the consumer electronics market will continue to grow in 2012. Combined with relatively low inflation and low interest rates, customers are spending on bigger ticket items such as PCs and notebooks, thereby boosting the market. While we acknowledge various vulnerabilities such as high personal debt levels, adverse weakness in the housing market and subdued levels of private sector credit extension, in our view a number of factors bode well for consumer spending. The relative buoyancy of the retail sector was evident in 2011, with

major retailers enjoying brisk trade in the pre-Christmas period. Retailers reported strong sales of large-screen TV sets, with models in the ZAR9,000 range proving popular. Overall we hold to our wider view that the consumer electronics market will continue to enjoy a revival in 2012.


Full Report Details at
- www.fastmr.com/prod/456388_south_africa_consumer_electronics_rep ..


Headline Expenditure Projections

Computer hardware sales: US$5.1bn in 2011 to US$5.4bn in 2012, +7% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst adjustment, but following a strong 2011 PC market growth is expected to slow in 2012.

AV sales: US$1.4bn in 2011 to US$1.5bn in 2012, +7% in US dollar terms. Forecast in US dollar terms unchanged, with flat-screen TV sets expected to provide the most dynamic development.

Handset sales: US$1.9bn in 2011 to US$2.1bn in 2012, +12% in US dollar terms. Forecast in US dollar terms unchanged, with smartphones the main revenue growth driver.

Risk/Reward Rating

South Africa's score was 54.1 out of 100, unchanged from the previous quarter, which earned it sixth place in our MEA CE RRR table. We expect rising penetration of consumer electronics devices such as smartphones and flat-screen TV sets.

Key Trends & Developments

* The South African Department of Education has announced a target of rolling out laptops to all schoolchildren in the country by 2014. The government is looking at various ways to achieve this, including the use of portable mobile computer labs for schools where there is no infrastructure. Following a strong recovery in PC shipments in 2011, the market should remain on an upwards trajectory.
* With only two years left until South Africa's deadline for digital broadcasting migration, this should be a driver for sales. The analogue broadcasting signal is scheduled to be turned off towards the end of 2013. Vendors will focus on high-growth new product categories such as internet-enabled TV sets and 3D TV.
* Smartphone and PDA sales were estimated to have doubled in 2011, and BMI expects sales of around 12.4mn units by 2016. Various applications and content will drive demand for higher tier handsets. In its half-year 2011 results, local mobile operator Vodacom reported a 65% increase in the number of smartphone users. Around 4mn of South Africa's 10.5mn data users are understood to be using fully featured smartphones, according to operator estimates.

Report Table of Contents:

SWOT Analysis
- South Africa Consumer Electronics Market SWOT
- South Africa Political SWOT
- South Africa Economic SWOT
- South Africa Business Environment SWOT
Middle East and Africa Risk/Reward Ratings
- Middle East And Africa Risk/Reward Ratings, Q412
Consumer Electronics Market
- Computers
- Table: Consumer Electronics Overview, 2009-2016
- AV
- Table: AV: Demand, 2009-2016
- Mobile Handsets
- Table: Mobile Handsets: Demand, 2009-2016
Consumer Electronics Industry
- Computers
- AV
- Table: South African Distributors For Leading Brands
Industry Forecast Scenario
- Consumer Electronics Market
- Table: Consumer Electronics Overview
- Government Authorities
Industry Developments
Macroeconomic Forecast
- Table: South Africa - Economic Activity, 2011-2016
Competitive Landscape
- Computers
- Handsets
- AV
Company Profiles
- Amap
- Sahara Computers
Demographic Outlook
- Table: South Africa's Population By Age Group, 1990-2020 ('000)
- Table: South Africa's Population By Age Group, 1990-2020 (% of total)
- Table: South Africa's Key Population Ratios, 1990-2020
- Table: South Africa's Rural And Urban Population, 1990-2020
BMI Methodology
- How We Generate Our Industry Forecasts
- Electronics Industry
- Sources

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Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010

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