New market study, "South Korea Consumer Electronics Report Q1 2013", has been published
2013-02-28 12:23:11 - New Consumer Goods research report from Business Monitor International is now available from Fast Market Research
BMI View: We project that South Korean consumer electronics spending will grow by about 3% in US dollar terms in 2013 to US$14.4bn, with a moderation in consumer demand expected. In future, maturity in many market segments means that growth will be driven to a large extent by product innovations such as smartphones and touch-screen handsets, as well as LED
and 3D TV sets. The roll-out of digital TV broadcasting ahead of analogue switch-off in 2013 will help support sales of premium TV sets. Smartphones, tablets and internet-enabled TV sets were among the main growth areas in 2012, with OLED TV set technology a new competitive battleground for vendors. However, the market remains a challenging for many vendors, due to the dominance of domestic giants such as Samsung and LG.
Full Report Details at
- www.fastmr.com/prod/541228_south_korea_consumer_electronics_repo ..
Headline Expenditure Projections
* Computer Hardware Sales: US$4.7bn in 2012 to US$4.7bn in 2013, +1% in US dollar terms. The forecast in US dollar terms has been upwardly revised, and growth areas will include demand for more mobile form factors such as tablets, as well as Microsoft's Windows 8 operating system.
* AV Sales: US$2.7bn in 2012 to US$2.8bn in 2013, +3% in US dollar terms. Forecast in US dollar terms downwardly revised, with TV set product innovation expected to provide the most dynamic development.
* Handset Sales: US$6.6bn in 2012 to US$6.9bn in 2013, +5% in US dollar terms. Forecast in US dollar terms unchanged, with smartphones the main revenue growth driver.
Risk/Reward Ratings: South Korea's score was 60.5 out of 100.0, which gave it an unchanged seventh place in our latest Asia CE Risk Reward Ratings (RRR) table. South Korea was boosted in our table by high Industry Risk and Country Risk scores of 70 and 83.7, respectively. However the country's overall ranking was deflated by a relatively low Country Rewards score of 40, which in part reflects the barriers to entry for non-South Korean market-entrants.
Key Trends & Developments
* A combination of new technologies such as OLED and internet-enabled TV, and more competitive pricing, should help to support AV demand. The falling price and profitability of LCD TV panels led Samsung and LG to announce in 2012 that they will cease domestic production of LCD TV sets, to focus on LED. A new focus for vendors is OLED TV sets, with leading local players like Samsung and LG vying to become market leader in this area of technology. These new technology Internet-enabled TV sets will remain a significant growth area.
* With an increasingly saturated market, handset revenue will be driven by product areas such as smartphones and high-definition camera phones. As of May 2012, smartphones made up 50.9% (26.77mn) of the mobile phones in the country. Korean telecoms regulatory body the KCC predicts that the number of smartphones in the country would reach 34.8mn (54.1%) by the end of 2012.
* South Korean vendors are looking to maintain their PC market dominance over the forecast period by competing in the growing tablet segment and through the introduction of new notebook products. Tablets, originally seen as primarily a consumer device, are forecast to experience increasing take-up in the business segment. In Q412 vendors launched notebook and tablet computers running on Microsoft's new Windows 8 operating system. Meanwhile, vendors are still looking to ultrabooks as a new growth area.
Report Table of Contents:
BMI Industry View
- Business Environment
- Table: Consumer Electronics Overview, 2010-2017
Industry Risk Reward Ratings
- Industry Risk/Reward Ratings
- Table: Asia Pacific IT Risk/Reward Ratings, Q113
Industry Trends And Developments
- Samsung Electronics
- South Korea Demographic Data
- Table: South Korea's Population By Age Group, 1990-2020 ('000)
- Table: South Korea's Population By Age Group, 1990-2020 (% of total)
- Table: South Korea's Key Population Ratios, 1990-2020
- Table: South Korea'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
About Fast Market Research
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