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Research and Markets: Consumer Electronics in China 2009: Market Analysis Out Now

Friday January 9, 03:45 AM

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Research and Markets (http://www.researchandmarkets.com/research/d39312/consumer_electroni) has announced the addition of the "Consumer Electronics in China 2009: Market Analysis" report to their offering.
REPORT COVERAGE
This report reviews characteristics, trends and developments over the 2002 to 2008 period in the consumer electronics market (excluding computers and peripherals, and communications technology) and industry of the People's Republic of China, and gives forecasts of market performance to 2013. The emphasis is on the retail market and the major industry players.
Executive Summary:
The period covered by this report is one where China's consumer electronics market reached what will perhaps be its nadir in terms of annual growth, between the years 2004 and 2006, when annual volume growth rates were above double-digit rates. Growth since then has weakened, and there are several good reasons for this.
Firstly, certain sectors of the market have matured to a point where they have reached a natural peak. TV penetration into the average urban household is now over 100%, which means that new sales growth is based upon technology upgrade, which relies upon industry innovation in new technology. Very little of this innovation comes from Chinese companies. What does come from China is legislation to force product and service improvements. The shift, for instance, to digital TV will force many consumers to either invest in a set-top box (STB) to sit with their existing TV, or buy a new TV. For many consumers who have only recently bought a large-screen analogue TV, the cheapest and least painful option is the STB.
The way Chinese consumers use their electronics products is also having an effect on growth patterns. MP3 players, until recently one of the fastest growing volume sectors, is now seeing decline. The reason is that many Chinese consumers are now buying combined mobile phone-cameras with built-in MP3 players. The industry's own convergence is therefore responsible for creating consumer demand that is undermining growth in the consumer electronics industry's own sectors.
However, such "traditional" sectors do continue to see market growth. Home entertainment systems, what used to be called Hi-Fi units, are seeing continued growth in rural areas, where even tape cassette sales are hanging on, despite the dominance of audio CDs. But CDs are in decline now, thanks to MP3 Internet and mobile phone downloads, and the widespread availability of pirate copies of popular music. A similar story has become apparent with DVD players and DVDs. Both are suffering from increased Internet bandwidths and wider availability of more downloadable video media from the internet.
What is clear from our current review of the market is that it is a market undergoing fundamental structural change, just as the domestic consumer market in China is shifting in its emphasis. Gone are the days of an export manufacturing or assembling-based economy and coming is the development of an economy based on domestic consumption. Current government planning and funding is based upon allowing low-value industries to die, and to promote higher value ones to thrive, whilst building up the rural economy through investment in modernization of the agricultural sector. Meanwhile, investment in new social security soft infrastructure, it is hoped, will help consumers to feel confident enough to save less and spend more.
We are therefore entering a period of emphasis shift in the way Chinese consumers and consumption will develop, while the consumer electronics market is morphing into something with significantly different product structures from what went before. This certainly makes doing any forecast predictions a lot more difficult, as the variables and unknowns are almost completely replacing the familiar predictable. What will be almost certainly true is that the rate that rural China comes on-line as a significant part of the consumer population will be crucial to the rate of growth in the consumer electronics sector in years to come. This will mean that, in order to drive new business growth, companies will have to move out of their comfort zones in the main urban centers of China, and will increasingly have to reach out into China's rural hinterland to win rural consumer interest. This will mean retooling both products and marketing attitudes to suit a very different demographic from that which they have been used to.
Key Topics Covered:
INTRODUCTION
1 CHINA'S CONSUMER ELECTRONICS MARKET
2 MARKETING & DISTRIBUTION
3 SWOT ANALYSIS
4 COMPANY PROFILES
5 CONTACTS
6 RELEVANT EXHIBITIONS & TRADE FAIRS
APPENDIX: MARKET BACKGROUND
Companies Mentioned:
BBK Electronics Corp.
Beijing Newsmy Co.
Canon Inc.
Haier Group Corp.
Hisense Group Co., Ltd.
Hitachi Ltd.
Konka Group Co., Ltd.
LG Electronics Inc.
Panasonic Corp.
Royal Philips Electronics N.V.
Samsung Electronics Co., Ltd.
Sichuan Changhong Electric Co., Ltd.
Skyworth Digital Holdings Ltd.
Sony Corp.
SVA Group Co., Ltd.
TCL Corp.
Xiamen Overseas Chinese Electronic Co., Ltd. (Xoceco)
For more information visit http://www.researchandmarkets.com/research/d39312/consumer_electroni.

Contact:Research and MarketsLaura WoodSenior Managerpress@researchandmarkets.comFax 
      from USA: 646-607-1907Fax from rest of the world: +353-1-481-1716

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