2013-08-25 09:15:30 - New Consumer Goods market report from Business Monitor International: "Russia Consumer Electronics Report Q3 2013"
We expect the Russian consumer electronics market value will increase by 12.9% in US dollar terms to US$25.4bn in 2013. Russian retailers including MTS, M.video and Euroset reported another year of strong growth in sales of some consumer electronics devices in 2012, and we believe the conditions are in place for this growth to continue through 2013. The Russian consumer electronics market is expected to increase at a double-digit compound annual growth rate over BMI's five-year forecast period to 2017, driven by the growing popularity of digital lifestyle products like smartphones, digital TV sets, tablets, digital cameras and portable audio devices. The planned roll-out of digital TV broadcasting to 95% of Russian citizens by 2015 and investment in 3G and
4G mobile communications infrastructure will boost spending. Meanwhile, the market should receive a further boost following WTO entry, confirmed in August 2012, with import taxes of 5-15% expected to be lowered within three years.
Full Report Details at
- www.fastmr.com/prod/670590_russia_consumer_electronics_report_q3 ..
Headline Expenditure Projections
Computer Hardware Sales: US$10.6bn in 2012 to US$11.3bn in 2013, +6.7% in US dollar terms. Forecast in US dollar terms downgraded slightly due to weaker than expected desktop and notebook sales in Q113, although growth of tablet sales is keeping the market buoyant.
AV Sales: US$8.2bn in 2012 to US$8.8bn in 2013, +7% in US dollar terms. Forecast in US dollar terms unchanged, with flat-screen TV set sales the main growth area.
Handset Sales: US$6.6bn in 2012 to US$8.6bn in 2013, +30.8% in US dollar terms. Sales of smartphones have been particularly strong and reversed a trend of declining handset prices, boosting overall market value.
Russia's score is 51.9out of 100.0, unchanged from the previous quarter. Russia stayed in third place in our latest Consumer Electronics Risk/Reward Ratings, below Poland and Czech Republic.
Key Trends And Developments
The PC market is undergoing a transition, with reports of steep declines in desktop and notebook shipments in Q113 - however this is being compensated by the increase in tablet shipments. Tablets will continue to be a growth area as prices decline with the wider availability of high quality Android devices, primarily from Chinese and Indian OEMs. This greater affordability is helping to sustain market value, as well as raising household PC penetration in Russia.
Meanwhile, the flat-screen TV set market still is far from saturated, particularly in remote areas. In the major cities of European Russia, rising incomes, new house builds and interest in luxury items will ensure growing demand for digital. The government has set a target for every Russian citizen to have access to at least 24 digital TV channels by 2015, with the amount of funding for digitalisation reportedly RUB76.3bn. Russia is expected to roll-out digital services gradually, starting from Russia's Far East and South Siberian regions, followed eventually by all populated localities.
In the handset market smartphone have continued to grow as a share of overall sales, with unit growth rapidly outpacing that of 2G handsets. Looking ahead, Demand for smartphone and higher end feature phones will help prevent stagnation in the handset market despite the slowing subscriber growth rate. In 2012, smartphones accounted for over 30% of all handsets sold at mobile provider MTS's retail chain and as a result average handset prices increased by around 12%, even though average smartphone prices were stagnant. As smartphone ownership has broadened, there is an opportunity for OEMs to capture market share among lower income consumers, with FLY the outperformer y-o-y to Q113, capturing 6% of smartphone sales, up 5.4pps y-o-y.
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
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 www.fastmr.com
or call us at 1.800.844.8156.