Ken Research recently published a report on ‘Electrical and Electronics Retailing in China – Market Summary & Forecasts; Comprehensive overview of the market, consumer, and competitive context, with retail sales value and forecasts to 2020‘, which discusses electronics market by major product type, by leading players, distribution channels and consumer trends and the sheds light on how the existing players can use this information to gain the competitive edge in the market. Additionally, major trends and drivers have also been covered, describing the market penetration and future potential of each product segment.
The Electrical and electronics segment is expected to snowball at a CAGR of 10.22% out of which the majority of the sales will be comprised of online purchasing and this trend will be responsible for approximately 21.8% by the end of this decade. 6.1% was substantiated by this industry out of the total retail sales of China.
Forecasts for the Chinese Electronics and Electricals Industry
The report expounds electronics segment by major product category, by leading retailers, distribution channels i.e. hypermarkets or supermarkets, consumer trends and sheds light on how the existing players can use this information to gain the competitive edge in the market over others. Furthermore, dominant trends and drivers have also been elaborated, defining the market penetration and future potential of each product type.
China has been facing the tough situation of a slowdown as this country still manages a mix of flexible and fixed exchange rate regimes also known as the dirty float exchange rate regime. It is characterized by China’s central bank (People’s Bank of China, PBC) intervention with the market forces of demand and supply of foreign currencies to avoid any adverse movements in its Balance of Payments Accounts by successfully changing the amount of currency being circulated in the economy. The country has been notorious for adopting beggar-thy-neighbor policies, grabbing every opportunity to devalue its currency to gain the edge in exports in order to support the major restructuring of its economy as it had been planning to induce a shift from being a service oriented economy to a manufacturing based economy in order to insulate it from shocks to the global economy.
The same export advantage argument holds true for the Chinese electrical industry since it is an economy having abundant supply of younger workers comprising the workforce to exploit the economies of scale. It is a diplomatic country with ties across the world that makes use of providing cheap labor to bring the economy’s growth to unprecedented levels. It contributes to nipping the incompetent players in the bud in foreign countries.
The consumers’ buying patterns evolve in this rapidly advancing technological age; there has been a shift to people researching about the product before actually buying it. It makes them more concerned about whether the product will be able to deliver what it promises and hence makes the market even more competitive. The report plans to explain how the mindset of the buyer varies with time and how these variations will affect this industry. This effect will generate survival of the fittest conditions in the marketplace since only those competitors will survive that will correctly demystify these covert potentially profit opportunities into their side and maintain the leading stance.
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Ankur Gupta, Head Marketing & Communications