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Magazine Luiza SA in Consumer Electronics (Brazil)

New C&M analysis: Consumer Electronics (Brazil) Magazine Luiza SA Company Profile

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2014-01-09 11:59:01 - Magazine Luiza SA in Consumer Electronics (Brazil) - a new company profile report on

After strong performances in 2010 and 2011, the consumer electronics market in Brazil recorded slower growth in 2012. This was a result of falling consumer confidence related to an economic slowdown, with real GDP posting growth of just 0.9%. Expenditure on consumer electronics was also impacted by growing indebtedness among consumers following significant government incentives in the field of consumer credit, including home lending.

Samsung continued to gain share in consumer electronics in 2012. A wide product portfolio and aggressive pricing contributed to the company achieving leadership in key categories such as smartphones, tablets and laptops. The introduction of innovative products, such as ultra-thin laptops and the Samsung Galaxy S3 smartphone, contributed towards helping Samsung surpass traditional companies in those categories,



including Positivo Informática and Nokia.

Due to the extreme income disparity between rural and urban households, sales of consumer electronics in Brazil are performing poorly in rural areas. In Brazil, urbanisation is continuing, with rural households accounting for no more than 11% of the total in 2012 and the southeast region remaining the most urbanised, while the north and northeast regions remain the most rural and therefore poorest areas. In consumer electronics, while certain categories such as mobile phones and televisions have high penetration rates, others such as tablets are considered unnecessary devices and are restricted to higher-income households.

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