2013-10-30 13:10:12 - New Consumer Goods research report from Business Monitor International is now available from Fast Market Research
Spending growth on consumer electronics devices in Hong Kong has slowed in 2012 and 2013 due to a combination of a weaker economic environment, price erosion and high penetration of devices in key markets. However, spending growth has remained in positive territory and we forecast total spending will increase 5.7% in US dollar terms in 2013 to reach US$4.45bn. Key product categories driving spending growth include HD TV sets, tablets, and 4G smartphones, with potential for hybrids and Ultrabooks to contribute to growth over the medium term. There is, however, downside risk to this scenario from the negative wealth effect of any cooling in property prices that would hit consumer confidence.
Full Report Details at
- www.fastmr.com/prod/698080_hong_kong_consumer_electronics_report ..
Headline Expenditure Projections
sales: US$2.46bn in 2012 to US$2.61bn in 2013, up 5.9%. We have revised our forecast downwards to account for the greater share of unit sales going towards low priced tablets, most commonly substituted for notebook purchases.
AV sales: US$1.44bn in 2012 to US$1.5bn in 2013, up 4%, with TV sets expected to provide the most dynamic development.
Handset sales: US$554mn in 2012 to US$605mn in 2013, up 9.2% as upgrades and replacement of smartphones the key sales growth driver.
Key Trends & Developments
* Smartphones have been the most important sub-segment of the handset market for several years, with penetration rising from 35.1% in 2011 to 62.8% in 2013. BMI expects sales of smartphones to continue to outpace growth of the overall handset market over our five-year forecast period. Sales will be driven by upgrades as well as replacements for existing smartphone users who have grown accustomed to short replacement cycles for their handsets. Although the market is healthy overall, vendors will be subject to price pressures that will likely narrow margins as Apple launches its cheaper plastic iPhone 5C and competition from mainland China vendors such as Xiaomi, Lenovo and Huawei intensifies.
* Hong Kong was found to have the highest penetration of tablet ownership among daily internet users in 2013 at 55%, according to research by Ericsson Consumerlabs. However, there is still growth potential in the market from both first time buyers and upgrades/replacements. Meanwhile, Hong Kong retailers are optimistic that product releases such as lower-priced ultrabooks and Windows 8 hybrid/convertible devices will keep sales of mobile computers at a high level in 2013.
* A combination of new technologies such as 3D, Ultra-HD, OLED and internet-enabled TV, and more competitive pricing, should help to support AV demand. To maintain or increase sales volumes, vendors will focus on product innovation, with drivers including improved display quality and wider screens, as well as design and features such as wireless technology.
Report Table of Contents:
BMI Industry View
- Consumer Electronics
- Business Environment
- Table: Consumer Electronics Overview
- Economic Analysis
- Property: Recalibration Of Expectations Under Way
- Private Consumption
- Government Consumption
- Fixed Capital Formation
- Net Exports
Industry Risk Reward Ratings
- Asia Risk Reward Ratings
- Table: Asia-Pacific Risk/Reward Ratings
- Table: Computer Sales, 2010-2017
- Table: AV Sales, 2010-2017
- Mobile Handsets
- Table: Handset Market, 2010-2017
Industry Trends And Developments
- Table: Electronics Industry Overview, 2010-2017
- AV Devices
- Table: AV & Electrical Appliances, Production and Export, 2010-2017f
- Mobile Devices
- Table: Communications, Production And Export
- Table: Hong Kong's Population By Age Group, 1990-2020 ('000)
- Table: Hong Kong's Population By Age Group, 1990-2020 (% of total)
- Table: Hong Kong's Key Population Ratios, 1990-2020
- Table: Hong Kong's Rural And Urban Population, 1990-2020
- Electronics Industry
About Business Monitor International
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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