Consumer electronics in argentina
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Euromonitor International’s “Consumer Electronics in Argentina” is now available at ReportsnReports.com.

Euromonitor International’s “Consumer Electronics in Argentina” is now available at ReportsnReports.com.

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Consumer electronics in argentina Document Transcript

  • 1. Consumer Electronics in ArgentinaReport SummaryCutting edge electronics are in demand2010 was the year of CCFL LCDs, smartphones and netbooks despite high inflation rates. LED TVs,smartphones, netbooks and tablets are also expected to be in high demand in 2011. Overall, consumerelectronics products will see a healthy market development during the forecast period and will featurenew adoptions and technology migration. Consumers are likely to sustain the growth curve during theforecast period with a next high peak in 2014.Sporting events drive demandA highly positive spirit driven by the FIFA 2010 World Cup, rise in wages, and flexible payment termsdefined the Argentina consumer electronics market in 2010. The FIFA World Cup hosted in SouthAfrica during the year was the single most influential event of the year as sports enthusiasm motivatedconsumers to adopt the latest television technologies. This was due to the high expectationssurrounding the performance of the la Albiceleste (sky blue and whites), a popular name given to theArgentinean national team, which included Lionel Messi, FIFA’s world player of the year in 2009 and2010. Argentineans were encouraged to consume as wages were increased and highly flexiblepayment options were provided on purchases of electronics. In addition, Argentina hosted and wonthe 2010 Women’s Field Hockey World Cup. Both of these sporting events enabled all leading brandsto achieve record sales. Several other key sporting events will help the adoption of consumerelectronics.Local production is on the riseNon-automatic import licensing and high import duties among others challenged brands’ businessplans, driving them to invest in local production based in Tierra del Fuego. Local production is obtainedthrough acquisitions and strategic partnerships and is mainly focused on reduction in taxes for locallyproduced products. In February 2011, the restrained portfolio of consumer electronics products wasexpanded to include notebooks, netbooks, mobile phones, and others. The government aims to turnthe southern province of Tierra del Fuego into a competitive production hub, much like the tax-freeManaos in Brazil. However, import restrictions remain a major challenge and are a key driver of highinflation rates.Government encourages consumptionThe last major credit crunch was in 2001-2002 with a strong devaluation of the local currency, whichwas again slightly hit at the end of 2008 by the global financial crisis. Since then the government hasattempted to spur consumption by consistently pressuring banks to increase their offerings of flexiblepayment options that include discounts of 20% and up to 50 interest-free instalments. Thus, 2010achieved new growth records in the sale of consumer electronics and also promises great results for2011 and throughout the forecast period.
  • 2. Digital transmission launchesThe state-owned Channel 7 featured the first digital transmission of the 2010 FIFA World Cup in Africa,which it did in association with the Japanese-Brazilian ISDB-T digital television standard. Thegovernment is currently working on generating awareness of the new television format whiledeveloping the local infrastructure to expand the signal’s reach through locally produced equipment.Cable operators also already offer HD television, promoting specific value-added services. This newmove is likely to significantly drive sales of home and portable electronics as a whole.TABLE OF CONTENTSConsumer Electronics in Argentina - Industry OverviewEXECUTIVE SUMMARYCutting edge electronics are in demandSporting events drive demandLocal production is on the riseGovernment encourages consumptionDigital transmission launchesKEY TRENDS AND DEVELOPMENTSLCDs, smartphones and netbooks perform well despite high inflation ratesPassion for sports increases technology consumption“Technology tax hike” increases pricesTierra del Fuego: a technology hubGovernment attempts to boost consumptionDigital TV launch opens new opportunitiesSummary 1 Summary Leading Specialist Retailers 2010MARKET DATATable 1 Sales of Consumer Electronics by Category: Volume 2005-2010Table 2 Sales of Consumer Electronics by Category: Value 2005-2010Table 3 Sales of Consumer Electronics by Category: % Volume Growth 2005-2010Table 4 Sales of Consumer Electronics by Category: % Value Growth 2005-2010Table 5 Consumer Electronics Company Shares 2006-2010Table 6 Consumer Electronics Brand Shares 2007-2010Table 7 Sales of Consumer Electronics by Distribution Format 2005-2010Table 8 Forecast Sales of Consumer Electronics by Category: Volume 2010-2015Table 9 Forecast Sales of Consumer Electronics by Category: Value 2010-2015Table 10 Forecast Sales of Consumer Electronics by Category: % Volume Growth 2010-2015Table 11 Forecast Sales of Consumer Electronics by Category: % Value Growth 2010-2015DEFINITIONSSourcesConsumer Electronics in Argentina - Company ProfilesDigital Fueguina SA in Consumer Electronics (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUND
  • 3. PRODUCTIONCOMPETITIVE POSITIONINGFrávega SA in Consumer Electronics (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDChart 1 Frávega SAIC e I: Frávega in San Isidro, Buenos Aires, ArgentinaINTERNET STRATEGYCOMPETITIVE POSITIONINGSummary 7 Frávega SA: Competitive Position 2010Garbarino SA in Consumer Electronics (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDChart 2 Garbarino SA: Garbarino in the city of Buenos AiresINTERNET STRATEGYCOMPETITIVE POSITIONINGSummary 10 Garbarino SA: Competitive Position 2010New San SA in Consumer Electronics (Argentina)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONSummary 13 New San SA: Operational Indicators 2010Summary 14 New San SA: Annual Production (‘000s units)COMPETITIVE POSITIONINGSummary 15 New San SA: Competitive Position 2010Camcorders in Argentina - Category AnalysisHEADLINESTRENDSCamcorders continue to be niche products with a limited demand compared to digital cameras.Argentine consumers are still slightly reticent about these significantly more expensive products thatdepend on the adoption of other consumer electronics products, such as screens and storage devices,to be fully and comfortably exploited.COMPETITIVE LANDSCAPEAs with digital cameras, Japanese player Sony continued to lead sales of digital camcorders inArgentina with a 33% share, followed by the historical leader for video broadcast, Audinac (JVC) andthe growing Samsung Electronics. Following behind, Kodak and Panasonic have some participation asdo other smaller market players.PROSPECTSDigital camcorders is expected to grow within the portable electronics category over the forecastperiod, demonstrating a CAGR of 12% in volume terms and 15% in constant value terms.
  • 4. CATEGORY DATATable 12 Sales of Camcorders by Category: Volume 2005-2010Table 13 Sales of Camcorders by Category: Value 2005-2010Table 14 Sales of Camcorders by Category: % Volume Growth 2005-2010Table 15 Sales of Camcorders by Category: % Value Growth 2005-2010Table 16 Camcorders Company Shares 2006-2010Table 17 Camcorders Brand Shares 2007-2010Table 18 Sales of Camcorders by Distribution Format 2005-2010Table 19 Forecast Sales of Camcorders by Category: Volume 2010-2015Table 20 Forecast Sales of Camcorders by Category: Value 2010-2015Table 21 Forecast Sales of Camcorders by Category: % Volume Growth 2010-2015Table 22 Forecast Sales of Camcorders by Category: % Value Growth 2010-2015Cameras in Argentina - Category AnalysisHEADLINESTRENDSDigital cameras also suffer from the extended tax hike ruling that came into place at the end of 2009.The law, reinforced in February 2011, establishes that all consumer electronics products will continueto be subject to the full VAT rate of 21%, and to an additional 17% Internal Tax unless manufactured inthe southern province of Tierra del Fuego.COMPETITIVE LANDSCAPEAfter being the first brand to offer 3D TVs in Argentina and expanding the product portfolio to 3D Blu-ray players, Sony aims to bring 3D VAIO notebooks into the country as well as digital cameras Cyber??-shot and Handycam, both also with 3D technology in 2011, depending on the market’s response to the3D launches in 2010. The brand is also considering adding digital cameras to its local production in thesouthern province of Tierra del Fuego in the short term.PROSPECTSDigital cameras is expected to achieve slight growth within the portable electronics category withCAGRs of 3% in volume and 5% in constant value terms over the forecast period, achieving sales ofARS2 million in 2015.CATEGORY DATATable 23 Sales of Cameras by Category: Volume 2005-2010Table 24 Sales of Cameras by Category: Value 2005-2010Table 25 Sales of Cameras by Category: % Volume Growth 2005-2010Table 26 Sales of Cameras by Category: % Value Growth 2005-2010Table 27 Cameras Company Shares 2006-2010Table 28 Cameras Brand Shares 2007-2010Table 29 Sales of Cameras by Distribution Format 2005-2010Table 30 Forecast Sales of Cameras by Category: Volume 2010-2015Table 31 Forecast Sales of Cameras by Category: Value 2010-2015Table 32 Forecast Sales of Cameras by Category: % Volume Growth 2010-2015Table 33 Forecast Sales of Cameras by Category: % Value Growth 2010-2015Computers and Peripherals in Argentina - Category AnalysisHEADLINES
  • 5. TRENDSArgentine people like to adopt the latest technologies available in communications and IT. In Argentinathere are 26 computers per 100 inhabitants, putting the country in the lead in terms of number of PCsper capita in Latin America.COMPETITIVE LANDSCAPEHewlett Packard, Lenovo and Banghó led sales of desktops during 2010. The first two are highlyrecognised brands that presented a healthy retailer penetration with a good offer of products.Nevertheless, Lenovo presents slightly higher prices aiming at a higher income demographic.PROSPECTSThe technology tax hike was expanded in February 2011 and now includes laptops and netbooks, inaddition to the already restricted LCD monitors. This is expected to slightly impact on prices. Thesecategories have already experienced considerable increases in the last couple of years thus, the taxhike is likely to have a limited impact on demand.CATEGORY DATATable 34 Sales of Computers and Peripherals by Category: Volume 2005-2010Table 35 Sales of Computers and Peripherals by Category: Value 2005-2010Table 36 Sales of Computers and Peripherals by Category: % Volume Growth 2005-2010Table 37 Sales of Computers and Peripherals by Category: % Value Growth 2005-2010Table 38 Computers and Peripherals Company Shares 2006-2010Table 39 Computers and Peripherals Brand Shares 2007-2010Table 40 Sales of Computers and Peripherals by Distribution Format 2005-2010Table 41 Forecast Sales of Computers and Peripherals by Category: Volume 2010-2015Table 42 Forecast Sales of Computers and Peripherals by Category: Value 2010-2015Table 43 Forecast Sales of Computers and Peripherals by Category: % Volume Growth 2010-2015Table 44 Forecast Sales of Computers and Peripherals by Category: % Value Growth 2010-2015Home Audio and Cinema in Argentina - Category AnalysisHEADLINESTRENDSConvenient combo offers of home cinemas or speaker systems were the best opportunity to achieve asignificant increase in demand during the year of the FIFA World Cup hosted in South Africa. Mostcompanies looked to tie these options to larger flat TVs.COMPETITIVE LANDSCAPEThe global leader Samsung manufactures in Tierra del Fuego associated with local companies theresuch as Garbarino, Frávega, BGH and Brightstar. They manufacture for Samsung mobile phones, inaddition to LCD monitors and TVs under LED and CCFL technology, LED and analogue TVs. Theinternational brand also announced the manufacture of digital cameras. However, the company hasnot yet defined the specific manufacturing facility for it.PROSPECTS3D related product launches are likely to receive a moderate response in the short term, givenconsumers lack of confidence and their significant higher prices.CATEGORY DATATable 45 Sales of Home Audio and Cinema by Category: Volume 2005-2010Table 46 Sales of Home Audio and Cinema by Category: Value 2005-2010
  • 6. Table 47 Sales of Home Audio and Cinema by Category: % Volume Growth 2005-2010Table 48 Sales of Home Audio and Cinema by Category: % Value Growth 2005-2010Table 49 Home Audio and Cinema Company Shares 2006-2010Table 50 Home Audio and Cinema Brand Shares 2007-2010Table 51 Sales of Home Audio and Cinema by Distribution Format 2005-2010Table 52 Forecast Sales of Home Audio and Cinema by Category: Volume 2010-2015Table 53 Forecast Sales of Home Audio and Cinema by Category: Value 2010-2015Table 54 Forecast Sales of Home Audio and Cinema by Category: % Volume Growth 2010-2015Table 55 Forecast Sales of Home Audio and Cinema by Category: % Value Growth 2010-2015In-Car Entertainment in Argentina - Category AnalysisHEADLINESTRENDSAutomotive circulation achieved 25% penetration in 2010 with an average increase of 2% annually, ofwhich 57% were passenger cars and 24% two-wheelers, which sustained the category’s growth.COMPETITIVE LANDSCAPEThe in-car consumer electronics sector suffered several changes in recent years bringing new entrantsto the category turning it into a more competitive arena. However, the strengthened presence of Sonyin the country allowed the brand to scale to the leading position achieving 21% of total volume sales ofin-car entertainment products during 2010, as one of the two main local brands to cover most of theproducts across the category.PROSPECTSGrowth will be stimulated by the expansion of vehicle penetration, and by the adoption of newtechnologies and upgraded in-car electronics. Standard in-dash audio and media players will continueto face growing competition from consumer electronics products with improving audio, video, andcommunications facilities, eventually making it less attractive for players to operate in this category.CATEGORY DATATable 56 Sales of In-car Entertainment by Category: Volume 2005-2010Table 57 Sales of In-car Entertainment by Category: Value 2005-2010Table 58 Sales of In-car Entertainment by Category: % Volume Growth 2005-2010Table 59 Sales of In-car Entertainment by Category: % Value Growth 2005-2010Table 60 In-car Entertainment Company Shares 2006-2010Table 61 In-car Entertainment Brand Shares 2007-2010Table 62 Sales of In-car Entertainment by Distribution Format 2005-2010Table 63 Forecast Sales of In-car Entertainment by Category: Volume 2010-2015Table 64 Forecast Sales of In-car Entertainment by Category: Value 2010-2015Table 65 Forecast Sales of In-car Entertainment by Category: % Volume Growth 2010-2015Table 66 Forecast Sales of In-car Entertainment by Category: % Value Growth 2010-2015Mobile Phones in Argentina - Category AnalysisHEADLINESTRENDS2010 established the migration trend from standard feature phones to smartphones. The main driverswere the mobile companies that offered more sophisticated phones at lower prices, while improvingtheir ARPU (average revenue per user). These players continued to launch different data plans for
  • 7. accessing emails and social networks furthering the increased demand and shrinking the replacementrates.COMPETITIVE LANDSCAPEMobile phones were highly successful in the southern province of Tierra del Fuego and promise highergrowth. Mobile phones posted a sales volume of 11.9 million units of which nearly 5 million wereproduced in Tierra del Fuego.PROSPECTSNew innovations and product launches will boost demand for replacements leading to a 7% CAGR involume terms and 15% CAGR in constant value terms over the forecast. The continued development ofnew communications and technology standards will continue to be the main drivers for a constantlyincreasing adoption.CATEGORY DATATable 67 Sales of Mobile Phones: Volume 2005-2010Table 68 Sales of Mobile Phones: Value 2005-2010Table 69 Sales of Mobile Phones: % Volume Growth 2005-2010Table 70 Sales of Mobile Phones: % Value Growth 2005-2010Table 71 Mobile Phones Company Shares 2006-2010Table 72 Mobile Phones Brand Shares 2007-2010Table 73 Sales of Mobile Phones by Distribution Format 2005-2010Table 74 Forecast Sales of Mobile Phones: Volume 2010-2015Table 75 Forecast Sales of Mobile Phones: Value 2010-2015Table 76 Forecast Sales of Mobile Phones: % Volume Growth 2010-2015Table 77 Forecast Sales of Mobile Phones: % Value Growth 2010-2015Portable Media Players in Argentina - Category AnalysisHEADLINESTRENDSPortable media players are suffering from a strategic change of focus, mainly driven by the increasingpenetration of mobile phones, smart phones and portable multimedia players with increased memory,and music-enabled capabilities.COMPETITIVE LANDSCAPENew San, a local manufacturer present with several facilities in the southern province of Tierra delFuego, managed to maintain the lead in portable media players in Argentina with a 30% share during2010. The company manages its three main brands including Philco, Noblex, and Sanyo that followmostly a volume pricing strategy.PROSPECTSPortable media players have added a new strength through the launch of E-readers and smaller andmore dynamic portable MP3 players. The portable media players sector promises a constantlyincreasing development at a CAGR of 2% in volume terms, achieving demand of 635,000 units by 2015.CATEGORY DATATable 78 Sales of Portable Media Players by Category: Volume 2005-2010Table 79 Sales of Portable Media Players by Category: Value 2005-2010Table 80 Sales of Portable Media Players by Category: % Volume Growth 2005-2010Table 81 Sales of Portable Media Players by Category: % Value Growth 2005-2010
  • 8. Table 82 Portable Media Players Company Shares 2006-2010Table 83 Portable Media Players Brand Shares 2007-2010Table 84 Sales of Portable Media Players by Distribution Format 2005-2010Table 85 Forecast Sales of Portable Media Players by Category: Volume 2010-2015Table 86 Forecast Sales of Portable Media Players by Category: Value 2010-2015Table 87 Forecast Sales of Portable Media Players by Category: % Volume Growth 2010-2015Table 88 Forecast Sales of Portable Media Players by Category: % Value Growth 2010-2015Televisions and Projectors in Argentina - Category AnalysisHEADLINESTRENDSTelevisions have the highest penetration rates in the country among all consumer electronics withvolume sales of 2.8 million units in 2010. This is a trend that has been historically maintained in thecountry, and is expected to continue throughout the forecast period as the most popular in-homeelectronic device in Argentinean culture.COMPETITIVE LANDSCAPEThe move from Plasma and CCFL TVs to LED TVs allowed leading brands such as Samsung, Sony,Panasonic and LG to reinforce their market positions. Meanwhile Philips lost share in this category.Panasonic maintains the lead mainly sustained via analogue TVs, while Samsung made the largest jumpthrough its push strategy by expanding its presence and product portfolio with both analogue anddigital TVs at all major retailers, with locally produced and imported products.PROSPECTSDigital televisions, such as DVD and BD players, home cinema and speaker systems, are expected toregister important expansion both in volume and constant value terms throughout the forecast period.Accessibility to digital technology is already strengthening competition between manufacturers, suchas Samsung and Sony, launching 3D-enabled electronic products. In fact, Sony expects that from thetotal TV sales in 2011, more than 20% will appeal to the 3D segment.CATEGORY DATATable 89 Sales of Televisions and Projectors by Category: Volume 2005-2010Table 90 Sales of Televisions and Projectors by Category: Value 2005-2010Table 91 Sales of Televisions and Projectors by Category: % Volume Growth 2005-2010Table 92 Sales of Televisions and Projectors by Category: % Value Growth 2005-2010Table 93 Sales of LCD TVs by Type 2009-2010Table 94 Sales of Plasma TVs by Type 2009-2010Table 95 Televisions and Projectors Company Shares 2006-2010Table 96 Televisions and Projectors Brand Shares 2007-2010Table 97 Sales of Televisions and Projectors by Distribution Format 2005-2010Table 98 Forecast Sales of Televisions and Projectors by Category: Volume 2010-2015Table 99 Forecast Sales of Televisions and Projectors by Category: Value 2010-2015Table 100 Forecast Sales of Televisions and Projectors by Category: % Volume Growth 2010-2015Table 101 Forecast Sales of Televisions and Projectors by Category: % Value Growth 2010-2015Video Players in Argentina - Category AnalysisHEADLINES
  • 9. TRENDSConsumer demand for video players witnessed a strong development mainly driven by increasingreplacement of traditional VCRs and aged DVD players since 2005, presenting accumulative growth of154% in volume terms and 229% in value terms despite the decline in 2009.COMPETITIVE LANDSCAPEPhilips managed to maintain the lead followed by Sony that has a solid traditional history in thecategoryPROSPECTSThe cost-effective DVD players are expected to continue driving demand for video recorder devicesthroughout the forecast period. However, market saturation already threatens DVD players which areexpected to record negative growth rates in the medium and long term.CATEGORY DATATable 102 Sales of Video Players by Category: Volume 2005-2010Table 103 Sales of Video Players by Category: Value 2005-2010Table 104 Sales of Video Players by Category: % Volume Growth 2005-2010Table 105 Sales of Video Players by Category: % Value Growth 2005-2010Table 106 Video Players Company Shares 2006-2010Table 107 Video Players Brand Shares 2007-2010Table 108 Sales of Video Players by Distribution Format 2005-2010Table 109 Forecast Sales of Video Players by Category: Volume 2010-2015Table 110 Forecast Sales of Video Players by Category: Value 2010-2015Table 111 Forecast Sales of Video Players by Category: % Volume Growth 2010-2015Table 112 Forecast Sales of Video Players by Category: % Value Growth 2010-2015About Us:ReportsnReports is an online library of over 100,000+ market research reports and in-depth marketresearch studies & analysis of over 5000 micro markets. We provide 24/7 online and offline support toour customers. Get in touch with us for your needs of market research reports.Follow us on Twitter: http://twitter.com/marketsreportsContact:Mr.Priyank7557 Rambler road,Suite727,Dallas,TX75231Tel: + 1 888 391 5441E-mail: sales@reportsandreports.comhttp://www.reportsnreports.comVisit our Market Research Blog