Owing to the auction of 4G mobile signaling in 2016 which had a positive impact on sales of mobile phones, to the European Football Championship and Rio Olympics which resulted in an increased sales of home video, home audio and cinema sales. In addition to the economic policy stimulus rolled out by the government, which resulted in boosted consumer spending on electronic products, paved way for an overall growth trend being observed in consumer electronics segment, both in terms of volume and value growth terms.
Demand among customers in 2016, was driven by innovative products launched by manufacturers but this had a negative impact on sales of the imaging devices. Nevertheless, the growth in consumer electronics products in 2016 was still threatened by the drought problem, the disposable income that could be used by consumers on consumer electronics was saved by them to buy the relevant products and other daily necessities
To drive value sales, many manufacturers tried to introduce new and innovative technology in consumer electronics, resulting in having consumers focus on premium products despite economic downturn in the country. The products became more successful among consumers belonging to middle to high income group and even though theydo not constitute a significantly big portion of the country, they vest higher purchasing power which could be especially be beneficial for premium products sales with high end technology supporting value sales in the consumer electronics market in 2016.
New technology and innovation offered a reasonable and affordable price to manufacturers of consumer electronics in a bid to increase sales and retain market share during economic slowdown or downturn in the country which came as an important measure. 4K technology in televisions which boosted customers’ attraction to home video in 2016 is one such an example. Most of the TV programmes are already being broadcasted in High Definition (HD) and customers are highly appreciative of sound technology such as Dolby Atmos Audio Technology in home audio and Wi-Fi connections. Smartphones are still favorite and convertible computers, smart watches; wireless speakers are gaining more and more ground in Thailand.
Emphasis has been on laying the build-up of the shopping experience for customers. More product consultants are now employed to provide customers with information on products and demonstrations of working of products. Since, consumers are demanding for more variety, retailers have added more product lines and expanded space to meet that facet of consumer demand. Selling spaces have been renovated in modern styles to cater to a new generation of customers and various upcountry locations are also being tapped now to boost spending.
Several important factors are predicted to drive sales of consumer electronics, in both volume and value terms, which are part of the economic stimulus policy of the government and expected to boost domestic spending in the years to come.
The report titled “Consumer Electronics in Thailand”, researches the market at the national levelfor consumer electronics according to their shape and size in the three categories of“in-home”, “portable” and “in-car” consumer electronics products markets. These include the products such as computers and peripherals, digital cameras by type, in-car entertainment, in-home consumer electronics, LCD TVs by screen type, mobile phones by type of contract, portable consumer electronics, smartphones by OS, tablets by OS, TVs by network connectivity etc. The report presents the latest retail sales data and attempts to identify the primary sectors driving growth in the consumer electronics markets and also identify the leading companies and brands in the competitive landscape. The various key factors influencing the market includenew product development, distribution and pricing issues.
From 2017 onwards, consumer electronics market in Thailand is expected to move back into an expansionary phase due to a growing middle class that is expected to spend more on consumer electronics. This upturn is expected to offset the weak volume growth due to a saturation in various important device categories. However, this can result in Thailand’s economy being exposed to a downturn in China that could slow down growth due to households deferring spending on devices..
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Ankur Gupta, Head Marketing & Communications
ankur [@] kenresearch.com