2013-10-09 14:24:49 - New Consumer Goods market report from Business Monitor International: "Malaysia Consumer Electronics Report Q4 2013"
We project that Malaysian consumer electronics spending will grow by about 10% in US dollar terms in 2013 to US$8.3bn, with strong sales of smartphones, tablets and flat-panel TV sets. In 2012, sales of many categories of digital lifestyle products including digital TV sets, smartphones and tablets reported double-digit growth, making Malaysia one of the region's high-growth consumer electronics markets. We expect private consumption to grow at a relatively robust pace of 5.5% in 2013, mainly due to the positive effects of cash handouts and increased welfare spending by the government. However, uncertainties over the export market and the outlook for employment could also weigh down consumer confidence and spending on discretionary lifestyle products such as TV sets. Malaysia has
emerged as one of the fastestgrowing regional smartphone markets and vendors will look to product innovation to drive revenue. Growth areas include tablets, Wi-Fi-enabled digital cameras, and smart TV sets.
Full Report Details at
- www.fastmr.com/prod/689058_malaysia_consumer_electronics_report_ ..
Headline Expenditure Projections
* Computer Hardware Sales: US$2.7bn in 2012 to US$3.0bn in 2013; +10% in US dollar terms. Forecast in US dollar terms upwardly revised as tablet sales were up by more than 50% H113, compared with the same period of the previous year.
* AV Sales: US$3.3bn in 2011 to US$3.5bn in 2013; +8% in US dollar terms. Forecast in US dollar terms downwardly revised, but with HD, smart TV sets and digital cameras providing strong growth areas.
* Handset Sales: US$1.6bn in 2012 to US$1.8bn in 2013; +11% in US dollar terms. Forecast in US dollar terms unchanged, with the launch of 4G mobile services providing a new growth opportunity in 2013.
Malaysia's score is 59.4 out of 100.0, which places it seventh in our latest Asia CE RRR table. BMI expects rising Malaysia to remain a growth market, with rising penetration of consumer electronics devices such as smartphones and flat-screen TV sets.
Key Trends & Developments
* As sales of traditional PC form factors continued to decline in Q113, tablet sales were up by more than 50% compared with the same period of the previous year, and look set to continue to grow. Sales appeared to be increasing, with the highest level of shipments reported in May. Falling prices have helped to drive the rapid growth trajectory, with the average tablet price declining about 20% in one year. One factor driving tablet usage is Malaysia's improved wireless broadband infrastructure, with an increase in the number of hotspots available fuelling demand for tablets as portable connectivity devices. Malaysian PC sales will be supported by the government's push for greater broadband penetration; the government has set an optimistic target of 75% by 2015.
* A combination of new technologies such as 3D, LED and internet-enabled TV, along with more competitive pricing, should help support AV demand. Smart TV sets proved a strong growth area in Malaysia in 2012, with vendor estimates that this category accounted for around 35% of total TV set sales, making Malaysia a regional leader. Overall TV net sales growth has been declining in volume terms over the past few years because of increasing competition from other multimedia devices such as computers and mobile phones. The growing popularity of LED backlit TVs and pay-per-view will drive revenue growth, due to the greater proportion of sales accounted for by high-end and large-screen models.
* 3G mobile services are now enjoying significant uptake, with operators running promotions on smartphones to encourage increased data usage. Operators are also expanding 4G/LTE service coverage beyond the Klang Valley and 4G-enabled smartphones have emerged as another growth opportunity. Half the handset market is made up of the youth segment, defined as those younger than 24. This segment is therefore a key target for handset vendors and operators. The youth demographic regards handsets principally as lifestyle devices and are mainly prepaid subscribers.
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