Chinese consumer electronic market forecast
2008-08-13

                                      Chinese consumer electronic market forecast

RNCOS, a leading market research firm, revealed in its latest report “Chinese Consumer Electronics Market till 2011” that China has emerged as the most important consumer electronics market in the world because of its potential, growth rate, and market size.

The market research report thoroughly evaluates the consumer electronics markets of E7 countries - India, Brazil, Turkey, Indonesia, Mexico, Russia, and China. And among the E7 developing countries, China is ranked as the most attractive consumer electronic market. In fact, China's consumer electronics market increased at a CAGR of 11.71% from 2002 to 2006, and based on the report, it is find that China's consumer electronics market is expected to grow at a CAGR of 12% from 2007 to2011.

The Chinese market is becoming increasingly crowded. Authors of the report find that companies are shifting their research and production towards more advanced products, such as Liquid Crystal Display (LCD) TVs, digital TVs, DVD recorders and digital cameras with ten-megapixel or higher resolution to be come more competitive. They say that the continuously falling prices of consumer electronics together with increasing disposable income is giving reasons to consumers to spend more on electronics products. Also, because of the owning of the largest people of the world, population is considered as the driving element of any industry, the report focuses on the factor specifically. It researches on how population of this booming economy make function in growth of consumer electronics market. It talks about the preferences of Chinese in consumer electronics, and further finds the age groups that are fuelling demand for the consumer electronic products in China. The report also finds the market segments that are being targeted by the manufactures to make greater profits in the country. For the purpose of this report, the market has been divided into various segments - Home Appliances, Sound & Images, Mobile Phones, and Personal Computers. It also traces the electronic product that will emerge as leader in future. And based on the report, the growth in the credit card market of China is leading to the popularity of consumer electronics products in the country. According to the report, the market was defined into several parts. In terms of sales volume, TV will post the highest sales followed by washing machines in the home appliances segment during the forecast period. (2007-2011).

Then, in the sound and images segment, Portable Media Player (PMP) and Digital Video Camera sales will increase with the highest CAGR values of 39.43% and 15.21% respectively during 2007-2011. 

And, in the medium-term, Mobile Phones and Personal Computers are among the consumer electronics with low penetration rates, indicating ampleroom for growth in sales.

Retailer credit will play a important role in extending consumer electronics to the lower socio-economic segment, thereby increasing sales from this segment. Although price will continue to be a key driver, financing options such as installment plans will drive penetration into these segments.