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New Market Research Report: Venezuela Consumer Electronics Report Q1 2014

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2013-12-29 20:52:08 - New Consumer Goods research report from Business Monitor International is now available from Fast Market Research

In a series of actions which are likely to put wary investors even more on edge, the Venezuelan government demonstrated it has no intention of changing course or addressing the serious economic challenges that the country faces. We believe near-recessionary conditions will persist over coming quarters and recent changes announced in Venezuela's management of its currency are not significant enough to reverse the overarching trend towards an official devaluation, which we expect to occur in H114. The devaluation will constrain consumer purchasing power and raise the cost of imported products for local consumers.The ascension to full membership in the Mercosur trading bloc by Venezuela in July 2012 is one of the few bright spots for local and foreign companies operating

in the country. This potentially opens up new opportunities in markets such as Brazil, Argentina and Uruguay, which Venezuelan companies can export consumer electronics products to, in order to boost growth. This is evident in the business strategies of Samsung, with its joint venture with the government, as well as VIT and Vtelca. Further, BMI expects an expanding population, rising disposable income and easier access to consumer credit to have positive effects on Venezuela's consumer electronics sales over the long term.

Full Report Details at
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Headline Expenditure Projections

* Computer hardware sales: US$1.32bn in 2012 to US$1.12bn in 2013, -5.2% in US dollar terms. Forecast downgraded last quarter in the wake of the devaluation of the bolivar.
* AV sales: US$1.10bn in 2012 to US$1.09bn in 2013, -1.1% in US dollar terms. Forecast in US dollar terms downgraded, but Venezuela's digital migration should drive demand for flatscreen TV sets.
* Handset Sales: US$1.41bn in 2012 to US$1.38bn in 2013, -2% in US dollar terms. Forecast in US dollar terms downgraded, but strength of local manufacturing in handsets and operator subsidies will help to absorb some of the impact of devaluation.

Key Trends & Developments

Samsung has signed an agreement with the Venezuelan government to establish a factory in the country to produce appliances, TV sets and mobile phones. The agreement is an extension to the joint venture and strategic alliance signed between the two during December 2012 and will include the capacity to export the manufactured goods. BMI sees a number of advantages for the electronics company in Venezuela, but cautions the risky business environment will be difficult to navigate over the into 2014. The joint venture is 51% owned by the Venezuelan state and 49% by the Samsung company, and was designed to produce goods for the domestic market and export to the South America. The Venezuelan Minister for Industries, Ricardo Menendez, indentified appliances such as washers, dryers and refrigerators will be manufactured alongside TV sets, monitors, mobile phones and tablets.

Venezuela's domestic consumer electronics production base has been developing rapidly in recent years, boosted by political support for social goals such as wider PC and mobile ownership, as well as import restrictions and, most recently, currency devaluation. This development has given producers the confidence to move into new product areas and, in June 2013, President Nicolas Maduro presented one of three tablets produced by VIT, with prices ranging from VEF2,950 (US$470) to VEF4,233. The Vergatario tablet follows on from the production of the Vergatario phone, which was aimed at making handsets affordable to the mass market in Venezuela. However, with the price of the tablets listed on the VIT website, BMI believes the tablets are unlikely to make an immediate impact on the market.

Report Table of Contents:

BMI Industry View
- Political
- Economic
- Business Environment
Industry Forecast
- Table: Consumer Electronics Overview, 2010-2017
Macroeconomic Forecasts
- Economic Analysis
- Table: Venezuela - Economic Activity
Industry Risk Reward Ratings
- Americas Risk Reward Ratings
- Table: Americas Risk/Reward Ratings, Q1 2014
Market Overview
- Computers
- Table: PC Sales, 2010-2017
- AV Devices
- Table: AV Sales, 2010-2017
- Mobile Handsets
- Table: Mobile Communications, 2010-2017
Competitive Landscape
- International Companies
- Table: Samsung Group
- Local Companies
- Table: Siragon
- Table: Vtelca
- Table: Venezolana De Industria Technologica (VIT)
Industry Trends And Developments
Regulatory Development
Company Profile
- Venezuela de Industria Tecnologica
Demographic Forecast
- Table: Venezuela's Population By Age Group, 1990-2020 ('000)
- Table: Venezuela's Population By Age Group, 1990-2020 (% of total)
- Table: Venezuela's Key Population Ratios, 1990-2020
- Table: Venezuela's Rural And Urban Population, 1990-2020
- Industry Forecast Methodology
- Sector-Specific Methodology
- Sources
- Risk Reward Rating Methodology
- Sector-Specific Methodology
- Table: Consumer Electronics Risk Reward Ratings Indicators
- Table: Weighting Of Indicators

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

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

Bill Thompson
Phone: 18008448156

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