BMI View: A w eak economic environment continues to weigh heavy on the Croatian consumer electronics market as 2014 marks the sixth consecutive year of GDP contraction. Declining consumption, high unemployment, currency depreciation and fiscal austerity continue to squeeze demand for devices, countering the positive impact of some technology trends such as adoption of smartphones, tablets and smart TVs. BMI believes big-ticket items such as TVs and PCs remain hardest hit by the economic challenges facing Croatia, leaving the handset market as the outperforming sub-segment. The economy will face slow recovery, which should start filtering from 2016 ; declining average selling prices in several key product categories and comparatively low penetra tion rates should drive spending growth in the latter years of our forecast.
Headline Expenditure Projections
Computer Hardware Sales: USD498mn in 2014 to USD489mn in 2015. The outlook remains weak owing to challenging economic conditions that are reducing consumer demand for big-ticket purchases. These factors are also encouraging the shift in sales towards cheaper tablets, creating an additional squeeze on the growth of sales value.
AV Sales: USD279mn in 2014 to USD293mn in 2015. Demand for smart TVs is boosting growth, but cannibalisation of digital cameras and standalone mp3 players by multi-functional smartphones is a drag on performance.
Handset Sales: USD289mn in 2014 to USD297mn in 2015. BMI forecasts a 2.7% increase in 2015. The handset market is expected to fare better in a challenging macro environment due to lower average selling prices.
Key Trends And Developments
The Croatian smartphone market has been outperforming the general consumer electronics market and we expect this trend to continue in the medium term. Data from leading mobile operator T-Mobile show smartphone penetration in its subscription base reached 32% at the end of 2013, with smartphones accounting for 60% of handsets...
The Croatia Consumer Electronics Report has been researched at source and features latest-available data covering both the manufacture and sale of consumer electronics products, critically analysing - and forecasting - the market dynamics affecting each sub-sector, including audio-visual, computers, mobile handsets, gaming and automotives electronics. Furthermore, the report analyses the domestic and global economic trends driving device demand and provides company rankings and competitive landscapes covering leading multinational and national consumer electronics companies and analysis of latest industry news and trends in Croatia.
BMI Research's Croatia Consumer Electronics Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the consumer electronics industry in Croatia.
- Benchmark BMI's independent consumer electronics industry forecasts for Croatia to test other views - a key input for successful budgeting and strategic business planning in the Croatian consumer electronics market.
- Target business opportunities and risks in Croatia through our reviews of latest industry trends and major deals, projects and investments.
- Exploit the latest competitive intelligence with company SWOT analyses.
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering consumer electronics, major investments and projects.
Consumer Electronics Market
Analysis of the size of the domestic market for electronics products, with in-depth assessment and data covering the dynamics driving each sub-sector; audio-visual, computers, mobile phone handsets and gaming devices, as well as demand for automotives electronics.
Analysis and data of the domestic electronics manufacturing sector. We assess the regulatory and business operational issues facing manufacturers - including openness to foreign investment, infrastructure, IP issues and the global demand context - and their impact on the production of electronics goods, which is again broken down via market sub-sectors.
Industry Forecast Scenario
Historic data series and forecasts to end-2018 for all key industry and economic indicators (see list below), supported by explicit assumptions, plus analysis of key risks to the main forecast, covering computers, communications and gaming devices. Indicators include:
Industry value (US$bn); population (mn); nominal GDP (US$bn); real GDP growth (%), GDP per capita, industrial production Index (% y-o-y ave.) unemployment % of labour force.
Business Environment Rankings
BMI's Consumer Electronics Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors and participants in the regional consumer electronics market. The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.