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Venezuela Consumer Electronics Report Q2 2015

Venezuela Consumer Electronics Report Q2 2015

BMI View: The exchange rate reforms enacted in February 2015 are effectively a devaluation, and will have a negative impact on consumer electronics market growth in 2015. Additional economic challenges in 2015 include inflation forecast at almost 75% and GDP to contract by 3.6% in real terms. Meanwhile, the push by the government to implement the 'fair price' law in H114, which restricted vendor margins to 30%, means vendors face continued political as well as economic risk factors. The law adds to a hostile business environment and exacerbates existing challenges for vendors including currency weakness, and economic, political and security risks that are weighing on purchasing power and consumer confidence. As the economy is stabilised in the latter years of our forecast period, we believe there is considerable potential in the Venezuelan market, with vendors potentially able to tap opportunities arising from low device penetration in key categories such as smartphones, tablets and flat-screen TVs, as well as pent-up demand from a period of economic instability.

Headline Expenditure Projections

Computer Hardware Sales: USD917mn in 2014 to USD517mn in 2015. Demand expected to contract in real terms as high inflation and the devaluation of the bolívar reduce household spending power, while also raising the price of components required for local assembly.


BMI Industry View
SWOT
Consumer Electronics Market
Political
Economic
Operational Risk
Industry Forecast
Table: Consumer Electronics Overview (Venezuela 2013-2019)
Macroeconomic Forecasts
Economic Analysis
Industry Risk Reward Index
Table: Industry Risk/Reward Index - Americas, Q2 2015
Market Overview
Computers
Table: PC Sales (Venezuela 2013-2019)
AV Devices
Table: AV Sales (Venezuela 2013-2019)
Mobile Handsets
Table: Mobile Communications (Venezuela 2013-2019)
Competitive Landscape
International Companies
Table: Samsung Electronics
Local Companies
Table: Síragon
Table: Vtelca
Table: Venezolana De Industria Technologica (VIT)
Industry Trends And Developments
Regulatory Development
Table: Regulatory Authority
Company Profile
Venezuela De Industria Tecnologica
Demographic Forecast
Demographic Outlook 2015
Table: Population Headline Indicators (Venezuela 1990-2025)
Table: Key Population Ratios (Venezuela 1990-2025)
Table: Urban/Rural Population & Life Expectancy (Venezuela 1990-2025)
Table: Population By Age Group (Venezuela 1990-2025)
Table: Population By Age Group % (Venezuela 1990-2025)
Methodology
Industry Forecast Methodology
Sector-Specific Methodology
Sources
Risk/Reward Index Methodology
Sector-Specific Methodology
Table: Consumer Electronics Risk/Reward Index Indicators
Table: Weighting Of Indicators

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