Venezuela Consumer Electronics Report Q1 2015 - New Study Released

The prospect of currency unification in 2015, which is our in-house Country Risk team's core scenario, is expected to add to the negative trends already impacting consumer electronics spending in Venezuela and result in a sharp contraction in US dollar spending. Meanwhile, t he push by the government to implement the 'fair price' law in H114, which restrict ed 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.

Full Report Details at
- http://www.fastmr.com/prod/924319_venezuela_consumer_electronics_report_q1_2015.aspx?afid=301

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.
* AV Sales: USD854mn in 2014 to USD721mn in 2015, -15.6% in US dollar terms. Demand for flat-panel TV sets hit by currency weakness, and we expect the market will continue to contract beyond 2015.
* Handset Sales: USD1.1bn in 2014 to USD1.0bn in 2015, -5.8% in US dollar terms. The relative strength of local handset manufacturing and operator subsidies will help to absorb some of the impact of devaluation, resulting in stronger performance compared with the other consumer electronics segments.

Key Trends & Developments

BMI expects unification of exchange rates for the bolivar in 2015 to prove a major disruptive...

The Venezuela Consumer Electronics Report has been researched at source and features latest-available data covering both the manufacture and sale of consumer electronics products, critically analysing - and forecasting - the market dynamics affecting each sub-sector, including audio-visual, computers, mobile handsets, gaming and automotives electronics. Furthermore, the report analyses the domestic and global economic trends driving device demand and provides company rankings and competitive landscapes covering leading multinational and national consumer electronics companies and analysis of latest industry news and trends in Venezuela.

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