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Price comparison over brand loyalty-New scenario for Consumer electronics market in UAE

Posted on 03 October 2017 by KenResearch Consumer Products and Retail,

Consumer electronics are the electronic devices, which are purchased for personal use and not for commercial use. These devices include digital cameras, computers and peripherals, television sets, in-car entertainment, in-home consumer electronics, smart phones, tablets and portable consumer electronics. Strong promotions are the key driving force that has led to a growth in sales volume that have lowered the average unit price of many electronics. 

Convertible laptops and smart wearable devices are the emerging segment in the consumer electronics. There has been an increasing demand for compact and multifunctional products, which provide internet connectivity such as smart phones and tablets. The sales of laptops are also increasing. The per capita income has been rising and the prices of consumer electronics have been declining which has led to increase in sales. The portable consumer electronics hold more than half of the market share where mobile phones have the major share in the portable segment. Computers, peripherals, and in-home entertainment follow the portables segment. There are new products being introduced in the market, which boosts sales in United Arab Emirates.

According to the market research report "Consumer Electronics in the United Arab Emirates", in 2016, the consumer seemed to be less confident in the market that resulted in retailers to provide discounts and other offers to increase sales. Consumers shifted their focus to price of the product than to brand loyalty or quality. This resulted in the reduction in profits of the manufacturers and retailers.The-leading company in the consumer electronics market in United Arab Emirates is Samsung Gulf Electronics. The company gains most of its revenue through sale of smart phones, tablets and LCD TVs. It has a wide product portfolio and pricing options. The market position of the companies frequently changes in the market and is characterised by development and introduction of new products and technology. Apple closely follows Samsung in 2016, due to the launch of iPhone 7.

Electronics and appliance specialist retailers are the most popular distribution channel as it provides a wide range of prices and products to the costumers as well as give them expert advice on the electronics. The fastest growing distribution channel is hypermarkets, which are currently in the second position but are expected to replace the specialist stores in the future. These stores offer an even wider variety of products and heavy discounts to the consumers like Carrefour hypermarkets and Lulu hypermarket. United Arab Emirates has a very strong shopping centre culture and consequently internet-retailing channel is not very widely used.  Internet is primarily a medium through which most of the consumers check and compare the prices and range of the products before actually going to purchase the products; therefore, it is important to have a user-friendly and informative internet-retailing website in order to attract the consumers into buying the products.  

The major revenue is earned by United Arab Emirates through shopping tourism especially in Dubai etc. This significantly contributes to the consumer electronics industry. The region is also experiencing economic growth, which further adds to the value of the industry. The prices will not be fluctuating too much and the industry will face a steady growth in future.  Smart phones, tablets and wearable electronics will continue to contribute a high share to the market and are expected to grow as the fastest segment.  The market will see many new product launches and will continue to expand in the coming years.

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