Consumer electronics sales likely to go up next year

Dubai : Demand for consumer electronics in the UAE is expected to increase strongly in 2010 despite a dip in 2009, said a top official at Sharp Middle East FZE.

"The market fell 15 per cent in value in 2009 compared to 2008 which was approximately around $3 billion (Dh11.01 billion), but in 2010 the market will bounce back to 2008 level," Manu Mahdi, General Manager for UAE business unit, Sharp Middle East FZE, said.

He said in fact the 15 per cent fall was felt across all the Middle East market. In 2010 the regional market value is expected to be around $14-16 billion same as in 2008.

"2009 was a bad year. This gave us an opportunity to sit back and understand what is going around and what are the changes needed to come into the growth track. Till 2009 we did not have time to sit and look in reality what is happening in the market because we were like other vendors chasing the market share. The market was growing at more than 30 per cent year on year till 2008," Manu said.

According to a Business Monitor International report, Dubai is a major trading centre for the UAE electronics market accounting for 80 per cent of UAE's total exports and 85 per cent of re-exports.

The UAE's consumer electronics market is expected to increase in value to $3.9 billion by 2013.

Manu said the retail market has seen a shift towards branded items this year as buyers prefer the prestige and security of buying a well-known brand.

Currently Sharp's market share is around six per cent and it expects 10 per cent market share in 2010.

"Apart from LED TV industry, health care is one industry which offers tremendous growth opportunity next year also due to the outbreak of influenza virus, H1N1. Despite the declining trend across the board this year, health care industry was doing brisk business," Manu said.

"Customer spending patterns have not changed much despite the bad news of Dubai World's debt restructuring when compared to the past six months. Customers and retailers have the confidence in Dubai's economy. If you look at the November numbers, it is higher than October and projections for December are better than November due to the Christmas, holidays and New Year, he said.

He said the concept of online shopping has not gained much momentum in the Middle East despite high internet penetration rate. In the West it is vice versa. Customers here still want to feel, see and hear the product. The online sales will increase in the next five years. Right now it is less than three per cent.