Strong demand for consumer electronics despite economic problems
Despite unfavourable economic conditions, Venezuela’s consumer electronics market showed strong growth in total volume and current value sales in 2010. This reflected the fact that Venezuelans like to keep up with technological trends and are often willing to pay a premium for more advanced gadgets, even when money is tight. This is particularly the case with mobile phones, which accounted for the largest share of total consumer electronics volume sales throughout the review period. Increasing urbanisation, the offering of attractive credit deals by retailers and the growing use of the internet (where Venezuelans can find cheaper deals and a wider assortment of products) also contributed to growth in total consumer electronics volume and current value sales in 2010.
Exchange rate restrictions limit consumer choices and push prices upwards
Throughout 2010, exchange rate restrictions made it increasingly difficult and costly to import certain types of goods into Venezuela, including consumer electronics. As a result, assortments of consumer electronics on offer in Venezuelan retail outlets were limited and weighted towards the most popular product types, while prices for many of the products that were available were very high. This drove many people to try and purchase consumer electronics from black market sources or via the internet.
Smartphones continue to gain popularity in Venezuela
Mobile phone usage in Venezuela increased rapidly throughout the review period, partly due to the limited availability of landlines in remote regions and lower income neighbourhoods. In 2010, mobile phones continued to account for the largest share of total volume sales in the consumer electronics market. While feature phones remained the most popular due to their lower cost, smartphones showed much faster growth in volume terms. Notably, Venezuela was one of the biggest markets in Latin America for BlackBerry smartphones. Aside from their convenience and multiple functions, the growing popularity of smartphones was also reflected the offering of affordable payment plans by retailers and network operators.
Portable media players function as status symbols for Venezuelans
Many types of consumer electronics are perceived as status symbols by Venezuelans. This is particularly the case with portable media players and mobile phones. In these categories, many consumers prefer to buy more expensive and up-to-date models as a means of showing people that they are relatively affluent and in touch with trends in technology. While the smartphones category was the main beneficiary of this trend in 2010, it also had a very positive impact on demand for multimedia players.
Products offering portability and multiple functions gain popularity
Consumer electronics that combine many functions – telephony, internet, photography, video recording, games, working apps etc – in one device proved increasingly popular with Venezuelans in 2010. Smartphones, portable multimedia players and tablets and other portable computers were among the main beneficiaries of the growing demand for products with multiple functions that provide greater convenience to consumers. In a related trend, more sophisticated products offering the latest image technologies (HD, 3D etc) also gained popularity in a number of categories. Demand for more sophisticated products that offer multiple functions, portability and/or state-of-the-art technological features will remain a key driver of growth in total consumer electronics volume and constant value sales over the forecast period. However, the strength of the demand for such products will be largely determined by economic conditions. Initially, it is likely that they will only be affordable to higher income consumers.
Report Summary
This market research report provides market trend and market growth analysis of the Consumer Electronics industry in Venezuela. With this market report, you’ll be able to explore in detail the changing shape and potential of the industry. You will now be able to plan and build strategy on real industry data and projections.
The Consumer Electronics in Venezuela market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Consumer Electronics in Venezuela?
- What is the fastest growing product category?
- What consumer electronics segments are growing the fastest?
- What are the major technology trends in new consumer electronics products?
- How has the economic downturn shaped consumer purchasing behavior when it comes to consumer electronics?
- How has the economic downturn shaped consumer purchasing behavior when it comes to consumer electronics?
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