Consumer Electronics Market Braced for a Testing 2009

The worldwide market for technological consumer goods has resisted a turbulent 2008, increasing by 13.7% The current economic difficulties have not dissuaded consumers to buy electronic products that are increasingly innovative and accessible.

According to the GfK data in collaboration with the (Consumer Electronics Association), the worldwide market of the technological consumer goods (TCE) has continued to perform well in spite of the collapse of the real estate market to the US, the bankruptcy of the financial institutions in the US and Europe, as well as economic deceleration around the world.

Global sales of TCE goods increased by 14% in 2008. Consumers throughout the world continue to enthusiastically buy a vast range of products, such as the LCD TV’s, smart phones, laptops, GPS, games consoles and others. At the end of 2008, consumers spent US$84 billion dollars more on TCE products than in 2007 to stand at US$694 billion, an increase of 13.7% compared to the previous year.

Consumer behaviour varies according to region. Countries characterised by strong economic growth and/or profiting from the emergence of an important middle-class such as Brazil, Russia, India and China are experiencing enormous demand for technological goods. In 2008, Asia accounted for 30% of the world expenditure for products TCE, followed by North America (22%) and Western Europe (19%).

The mobile phone remains a key purchase. Consumers are attracted not only by the technological innovations, but also by the fall in prices, a phenomenon witnessed in many TCE markets. Mobile and smart phones account for 27% of the total expenditure, with 1.2 billion phones bought in 2008. LCD TV recorded a growth of 39% in value, and laptops maintained their popularity with sales growth of 27% in 2008. GPS and the games consoles also saw double digit sales growth in 2008.

Mobile Phone to remain ahead

Contrasting sales are forecast for 2009. “Whether on the Turkish coast or in the Chilean mountains, consumers have access to information, entertainment and bidirectional communication.” commented Claude Floch, director of division Consumer electronics and numerical convergence of GfK Marketing Services France. “Many areas of the world are confronted with strong population densities or less developed infrastructures. Mobile devices help consumers to surmount these obstacles. Vis-a-vis the frantic rate of the current world, the need for granting oneself a moment of leisure with audio-visual equipment resulting from new technologies has never been more essential. Consumers satisfied this desire while continuing to improve their video and audio environment” he adds. For the year 2009, sales are predicted to fall in North America and Western Europe, but remain very positive in South America. On a world level, anticipated growth is +4%, and the sales are expected to reach US$724 billion.