UAE consumer electronics to exceed 14% growth this year
ONLINE MARKET TO GROW FASTER BY MORE THAN 33% WHILE OFFLINE BY MORE THAN 11%
The consumer electronics market in the UAE, both offline and online, is expected to grow to Dh15.4 billion this year compared to Dh13.5 billion last year, a growth of more than 14 per cent, an industry expert told Gulf News.
Isam Arshad, analyst at Euromonitor International, said the offline retail market is expected to grow by more than 11 per cent this year to Dh13.4 billion, compared to Dh12 billion last year, while online retailing is expected to reach Dh2 billion compared to Dh1.5 billion a year ago, a growth of more than 33 per cent.
He said the year-on-year growth of consumer electronics sold through distribution channels is the fastest, at 31 per cent this year, compared to other offline channels, where growth remained on an average of 18 per cent year on year.
Even though the market was weak in the first two quarters due to value-added tax (VAT) and low consumer confidence, he said the market has started recovering from the third quarter. “Lots of people got salary increases in the UAE and there were a lot of successful promotional campaigns this year compared to last year,” he said.
Tourist purchases
A large number of tourists are also expected to pour into Dubai in the next six months till March, Arshad said.
“Tourists will buy electronics ■ as they can reclaim VAT now and many vendors are expecting to see a rise in footfall. People were scared when VAT was introduced, but they have started getting used to it only after seven to eight months; same is the case for any country,” he said.
“We may see a small uptake in smartphones by tourists, when the VAT refund for tourists happens. Mobile phones are a big-ticket purchase item that tourists carry when they leave Dubai,” said Deepak Babani, vice-chairman of Eros Group.
However, Arshad said smartphones have a lot of potential for growth despite not seeing plenty of innovation.
“Most companies are investing in artificial intelligence, while it was biometrics earlier. Even though dual SIM phones were available in the market about seven years ago, Apple has just come out with a dual SIM option (one nano SIM, the other embedded) but the eSIM option is not going to be available in the near future. Many people in the UAE travel abroad and they will find it useful.
“TV sales have been high due to the football World Cup. Companies are promoting TVs of 50 inches and above, while people are not buying screen sizes below 50 inches,” he said.
Ashish Panjabi, chief operating officer (COO) of Jacky’s Business Solutions, said the replacement cycle for laptops still holds sway, especially for laptops more than two years old.