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Consumer electronics products are still flying off the shelves
People are feeling the pinch, but more time at home means more gadgets are required for entertainment.
- By Vishesh Bhatia, Special to Gulf News
- Published: 00:41 December 2, 2008
Let's not fool ourselves: everything is not hunky-dory on our side of the geographical fence.
People are reluctant to splurge on extras at the movies, business class air travellers are slumming it in economy, and fine dining is now something you only do on anniversaries. This despite the fact that the American people have voted and the new White House occupant is ready to move in from Chicago.
Then why the mad rush at consumer electronics store counters across Dubai, one might ask. And that too right in the middle of this global economic turmoil that has thrown a few choices out of gear.
For one, the information technology season in Dubai last month spurred consumers to secure their gadgets, computers or home theatre systems at some excellent prices for the holiday season that's around the corner.
The bigger picture of course is that this global downturn is affording everyone a new perspective on life. You may not be buying that new car or that new home, or ordering any more new hardware for your office, but what you are doing is staying at home, getting together with your family, being entertained and getting connected.
When consumers choose to spend on gifts for the holiday season, they have such a soft spot for electronics they will give up items like sporting goods and holidays to pay for gadgets.
Most importantly, consumer electronics are no longer about just buying luxury items or products that are fun to own. They really are used in a variety of ways to enhance communications, increase productivity, for education or just for sheer entertainment. Also, from a gift-giving standpoint, there is a tremendous "wow" factor with electronics.
Although this year's projected fourth quarter growth is down from last year, I expect discretionary spending on consumer electronics to be high, with consumers planning to spend less on other items this holiday season but more on gadgets.
I must sound a note of caution, however.
Consumers will be seeking value-driven purchases during these difficult times. It is not uncommon to see very strong attachment rates to gadgets and equipment during tough economic times. When finances are tight and consumers make a sizeable purchase for their homes, they can ill-afford a product failure. So brand loyalty is stronger than ever.
Consumers leave stores empty-handed or spend less money than intended because they either could not find merchandise that matched their preferences or sales staff that were convincing enough to make them part with their money.
Consumers are ready, willing and able to spend top dirham to protect that investment. Especially during these tough economic times.
- Vishesh Bhatia is Group Director - Electronics, Engineering & Technologies Al Futtaim Group.
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