Dubai: Sale of electronics in the UAE grew 12 per cent during the first half of this year, retailers participating at the Gitex Shopper, said.
Electronics sales have grown from Dh12.4 billion in 2011 to Dh13.9 billion, according to the latest statistics. Smart phones, tablets and smart TVs are driving this growth.
Ashish Panjabi, CEO, of Jacky’s Electronics, said: “While the electronics sales across the UAE grew by 12 per cent in the first half of 2012, the market is expected to grow further. Increasing demand for new technology products and changing lifestyles tilting towards greater dependence on modern technology are the real stimulants that will keep the cogwheel of the electronics market moving.”
He said that the launch of the mobile phones iPhone and Galaxy has largely contributed in the increase of phones devices sales by 50 per cent this year.
Panjabi said while tablets sales increased by 22 per cent, computer sales dropped by 20 per cent this year.
Yasser Sharaf, CEO of Sharaf DG, said that the company’s sales grew between 30 to 35 per cent in the first half of this year compared to 2011.
New location
He said, “We are expecting 100 per cent growth in our sales during Gitex Shopper this year, especially after being moved to this central location in the Dubai World Trade Centre.”
Sharaf also said that Dubai’s strategic location and the presence of regional distribution offices of leading electronics manufacturers, assembling of electronic products are some of the factors contributing directly to the growth of the country’s consumer electronics market.
About 40 per cent of imported consumer electronics find its way into the domestic market. This significant domestic demand increases the volume of imports, thus making re-export prices competitive.
According to a data released by Business Monitor International (BMI), in 2010, TV sets, digital camera and VCR Players accounted for about 81 per cent of the UAE’s consumer electronics spending, followed by computers and audio video (AV) devices which explains the rise of the domestic market in the country in comparison to its re-export trade.
Sharaf highlighted that over the last decade, the demand for consumer electronics has increased beyond expectations thanks to the local demand created by residents and tourists alike as well as the UAE’s strategic location as a major re-export hub in the region, which together support the growth of the consumer electronics market.
“The rise in the availability of assembling facilities of electronic products for domestic utilisation has also fanned the demand locally.”
Challenges
The major challenge faced by the consumer electronics industry is the fast changing nature of the technology industry as new and upgraded products from various manufacturers flood the market. The retailers’ woes are further exacerbated due to low profit margins in the wake of tough competition, changing structures of retail outlets and competition faced by local manufacturers and assemblers from foreign imports.
Another reason is the unrest in the region which has seen a slowdown in re-exports to certain markets in the Middle East.
