BMI View: H igh incomes and a tech literate population combine to ensure demand for the latest devices remains strong in Hong Kong , helping to compensate for the diminished first time buyer opportunities in all three segments as a result of high penetration rates . S pending growth on consumer electronics devices slowed in 2012 and 2013 due to a combination of a weaker economic environment, price erosion and high penetration of devices in key markets , but t he outlook for 2014 is stronger . W e expect growth to accelerate as high consumer confidence and short replacement cycles in key product categories such as smartphones and tablets will ensure spending growth remains positive over the medium term. There is, however, downside risk to this outlook from a hard-landing in China, or from the negative wealth effect of any cooling in property prices that would hit consumer confidence.
Headline Expenditure Projections
Computer Hardware Sales: USD1.63bn in 2013 to USD1.71bn in 2014, up 5.1%. Tablets will again be the largest segment, but in terms of contribution to market value growth it is traditional form factors we expect to outperform.
AV Sales: USD1.33bn in 2013 to USD1.4bn in 2014, up 4.8%. After a contraction in 2013 due to digital camera and mp3 unit cannibalisation by smartphones, as well as price erosion in the TV market, we expect a return to growth in 2014 as the camera and mp3 markets stabilise and the FIFA World Cup boosts TV volumes.
Handset Sales: USD2.44bn in 2013 to USD2.63bn in 2014, up 7.8% as upgrades from 2G/featurephones and replacement of high-end smartphones ensure the smartphone market grows rapidly in 2014, but growth will decelerate markedly over the rest of our forecast.
Key Trends & Developments
The Hong Kong 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 Hong Kong.
Business Monitor International (BMI)'s Hong Kong 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 Hong Kong.
- Benchmark BMI's independent consumer electronics industry forecasts for Hong Kong to test other views - a key input for successful budgeting and strategic business planning in the Hong Kong consumer electronics market.
- Target business opportunities and risks in Hong Kong 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.