BMI View: W e downgraded the consumer electronics market forecast in the Q415 update due to local retailers reporting a greater extent of disruption than we had anticipated. The main shift is a more bearish handset market outlook after reports that there were severe shortages due to operators being unable to import handsets through Telecom Venezuela. The downgrade is however relatively minor in the context of our pre-existing view for Venezuela to be the underperforming consumer electronics market globally due to devaluation and the impact on device affordability for local consumers where local wage inflation trails far behind device price inflation. Meanwhile, t he push by the government to implement the 'fair price' law in H114, which restrict ed vendor margins to 30%, means vendors face continued political as well as economic risk factors. The law adds to a hostile business environment and exacerbates existing challenges for vendors including currency weakness and economic, political and security risks that are weighing on purchasing power and consumer confidence.
Headline Expenditure Projections
Computer Hardware Sales: USD917mn in 2014 to USD300mn in 2015. Sharp contraction forecast in value and volume terms in the PC market in 2015 due to the impact of currency reforms, which raised the cost of imported PCs and components, while additional reports of shortages of devices in retail outlets.
AV Sales: USD934mn in 2014 to USD332mn in 2015, -64.5% in US dollar terms. Demand for TV sets hit by devaluation and we expect the market will continue to contract beyond 2015 as digital camera volumes decline due to the proliferation of smartphone ownership.
Handset Sales: USD1.2bn in 2014 to USD708mn in 2015, -41.3% in US dollar terms. Handset shortages widely reported by Q215 due to lack of foreign exchange available to for operators to import devices through Telecom Venezuela, while devaluation also resulted in a sharp deterioration in...
The Venezuela 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 Venezuela.
BMI Research's Venezuela 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 Venezuela.
- Benchmark BMI's independent consumer electronics industry forecasts for Venezuela to test other views - a key input for successful budgeting and strategic business planning in the Venezuelan consumer electronics market.
- Target business opportunities and risks in Venezuela 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.