Digital products sales prop up marts

Extremely buoyant sales for digital-based products helped prop up growth in the local consumer electronics markets in the year to date, according to a senior industry source. Growth for the overall market this year in quantity terms is estimated at 5 per cent.

However, revenues may have remained flat, primarily because of the drop in prices in major product categories, the official added.

"While in 2001, the consumer electronics market maintained volumes, this year's performance has been quite buoyant," said Sam Turel, general manager of Oman National Electronics (ONE), part of the Al Futtaim Group and the local dealership for Panasonic.

"We estimate that digital product sales have grown double that of the broader electronics market. Their share of the market, too, has grown, and would be about 20 per cent of the volumes.

"We believe this shift to digital products will continue well into the medium term and ensure further growth for the industry."

Interestingly, demand from the local retail market has been quite strong and went a long way in compensating for relatively flat re-export volumes.

Owned by Japan's $51.7 billion Matsushita Electric Industrial Co., Panasonic has developed a dominant 20 per cent plus market share in the audio segment, according to Turel.

Now, the brand is looking to improve its share in the colour television category. It has just launched a range developed specifically for the regional markets. With these two models, priced at Dh999 and Dh1,099, Panasonic is aiming for a 10 per cent market share of the branded television market in the region.

The CTV market in the Middle East and Africa is estimated at three million sets annually. In the UAE, the annual demand is for about 500,000 units, including unbranded ones. The estimate, of course, excludes those passing through Jafz.

"The Middle East is a steadily growing market that plays a crucial role in our overall global business strategy. The new products have been created after incorporating the preferences and demands of customers in the region," said Masato Tomita, managing director for Panasonic Marketing M.E., based in Jebel Ali Free Zone.

The company has also introduced new models within the video CD hi-fi range. The four models are priced between Dh800 and Dh1,460.

The Middle East represents a market of over 500,000 units with a total value of Dh500 million. Panasonic holds a 20 per cent market share, and aims for 25 per cent. ONE expects to sell about 20,000 units of these mini hi-fi systems.