Press release. Strong quarter for Saudi technical consumer goods market. Results of GfK TEMAX KSA for the second quarter

Transcription

1 GfK Retail and Technology Press release 21 Nov 2010 GfK-MEMRB Retail and Technology P.O. Box , Dubai United Arab Emirates Strong quarter for Saudi technical consumer goods market Results of GfK TEMAX KSA for the second quarter Riyadh, Nov 18, 2010 GfK Saudi Arabia Q reports showed an improved market with an increase of 30.6% in total revenue. The Saudi technical goods market has been growing in each quarter as a result of a continuous development from both organized retailers and the trade market. Average prices have improved significantly over the last four quarters which translates into increasing sales in value terms. GfK-MEMRB Retail and Technology P.O. Box , Dubai United Arab Emirates Contact: For Telecom: Meghna Bhat Product Manager Telecom meghna.bhat@gfk.com The Ramadan season followed by Eid, has resulted in improved volume sales for most categories. The telecom sector records the highest in Q compared to Q with a growth of 47.1% revenue increase followed by Small Domestic Appliances (SDA) (+41.1%), Major Domestic Appliances (MDA) (+29.5%), Consumer Electronics (+27.4%) and the Information Technology (IT) sector (+17.1%). The declining prices however, caused a slight drop in value for the Photo and OE Sectors, which fell -18.1% and -6.2% respectively. Compared with the previous quarter (Q2 2010), sales in Q have increased by 16% across the entire technical consumer goods market. Sales development of technical consumer goods in KSA Marina Turner Deputy General manager marina.turner@gfk.com 7 SAR bn 6.67 Kevin Ribeiro Consumer Electronics kevin.ribeiro@gfk.com Ilias Karaboikis Small & Major Domestic Appliances ilias.karampoikis@gfk.com Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Page 1 of 5

2 Telecom: market worth just over SAR 2 million The telecommunication sector has grown by 19% over Q2 2010, currently worth SAR 2.3 million. This growth is mainly driven by the booming Smartphone segment. The mobile phone segment saw a marginal increase from the previous quarter, although there was still a decline against Q of -24%. Smartphones are going strong and seem to have expanded in the mid and lower tier price points, moving away from the high-price range implying increasing affordability and competition. Key drivers within Smartphone segments were features such as QWERTY and touchscreen. Sales of other telecom products such as Cordless phones and Bluetooth headsets were less successful, reporting a decline in value. Consumer Electronics: sector enjoys health growth The sector goes from strength to strength quarter on quarter, as the Kingdom of Saudi Arabia demonstrates a healthy recovery. Between Q2 and Q3, growth of 11% was observed and when compared to the same period last year the third quarter showed a growth of 27%. All Categories showed positive signs with Video Game Consoles again enjoying the highest growth of 64% in terms of sales value between Q2 and Q3. Both the home and portable segments increased equally by 50% over the previous quarter in terms of sales value. LCD-TV and Plasma-TV were also up by 8% and 12% respectively. DVD players and Home Theatre systems also went up between Q2 and Q3 with respective growth of 17% and 3% in terms of sales value, thus continuing its pace from the start of the year. Once again the main feature shining for Home Theatres is the Blu-ray player with 35% growth in terms of sales value whereas USB connectivity and HDMI features still show high sales in the DVD player market. The only category to endure a drop was USB memory which fell by -17%, whereas no change was seen for Memory Cards. The much-awaited Pilgrimage season has holds high hopes for the last quarter of the year. Photo: Ramadan and Eid help boost sales The third quarter for the Saudi Photo market saw an improved performance over the previous quarter; sales grew 17% between Q2 and Q3 in value terms. Nevertheless, compared to Q3 2009, sales fell by -18%. Page 2 of 5

3 Demand continues for the higher MegaPixel cameras with 13% growth seen in the compact segment and a huge 74% increase in the SLR segment. The Ramadan season followed by the Eid festivals helped boost sales for the Photo category. In addition, a minor contribution of the new segment of Compact bridge cameras has created an interest in interchangeable lens. Saudi Arabia is looking forward to the Pilgrimage season, where sales are expected be skyhigh. Major Domestic Appliances: maintaining positive growth during Ramadan. The total turnover for the MDA Market in Saudi Arabia for Q amounted to SAR 691 million, an 18% increase from second quarter of the year and a 29% increase compared to the same quarter last year. The overall market value in 2010 has been consistently increasing with year to date (YTD) growth of 18% when comparing with YTD Refrigerators (SAR 325 million) and Washing Machines (SAR 188 million) contributed to the majority of value sales in Q3 2010, amounting to SAR 514 Million in total, with a 17% and 11% increase over the previous quarter and significant growth of 28% when compared to the same quarter last year. Of all the MDA Products, Cookers/Ovens contributed SAR 151 million value and recorded the highest growth (+30%) when comparing Q with the previous quarter and a 35% increase when comparing it to the same quarter last year. Microwave Ovens maintained a positive trend of 16% with SAR 26 Million in sales value when comparing Q with Q and a 20% growth of value as compared to the same period last year. The MDA market in the Kingdom is expected to maintain a similar value in the last quarter of the year as well. Small Domestic Appliances: growth continues thanks to seasonality The total SDA Market in Saudi Arabia for the third quarter of 2010 accounted for SAR 887 million, 26% growth from the previous quarter and a massive 41% increase compared to the same quarter last year. The SDA market in 2010 has been constantly increasing with a YTD growth of 24% when comparing it to YTD Air conditioners contributed to the bulk of the sales value, worth SAR 762 Million; growth of 28% over the previous quarter and up 45% as Page 3 of 5

4 compared to the same quarter last year. During the Ramadan season, Food preparation recorded high sales value of SAR 44 Million; 32% growth from Q and a 24% rise as compared to Q Vacuum cleaners, the third highest contributors towards the SDA total, grew by 7% and 11% over Q and Q respectively and grossed SAR 40 million during the third quarter of the year. Shavers accounting for SAR 17.6 million grew by 9.4% in Q3 2010, while in comparison with Q the product group rose by 23.7%. Irons accounted for SAR 14.3 million during the third quarter, increasing sales by 4.8% over Q2 2010, while in comparison to Q3 2009, growth stood at 19.6%. Haircare products, including Hairdryers & Hairstylers both increased their sales value over the second quarter of the year by 10%, rising 14% and 53% over the same period last year. Haircare products combined grossed SAR 8.4 million in Q2 2010, compared to SAR 7.6 million in the previous quarter. The SDA market in the Kingdom is liable show a slight decrease in the last quarter of the year, due to seasonality of some products in Q IT: market shows growth during the third quarter The Saudi IT Market is worth SAR 1.17 million in Q having grown by 17% compared to the same period last year. The IT consumer business has stabilized over the last six quarters. Comparing the previous quarter, Desktop PCs declined by 2.8% in terms of revenue whilst Notebook PC s recorded growth of 12% in revenue terms; this is due to the decreasing average price of Notebooks, which is becoming more affordable to the Saudi IT consumer. Office Equipment & Consumables: Saudi MFD market in decline The first two quarters of the year were slow for Saudi s MFD business and this trend seems to be continuing. As a result the Office market has stayed relatively flat between Q3 and Q2 2010, value standing at SAR 115 million. MFD has dropped by -12% in value terms year-on-year, while comparing Q to Q Printers declined by -5% in terms of revenue against Q Page 4 of 5

5 Summary in table format Q Q Q Q SAR SAR SAR Q3 2010/ Q SAR +/- % Q1-Q Q1-Q3 2010/ Q1-Q SAR +/- % Consumer Electronics 1,090 1,079 1,157 1, % 3, % Photo % % Major Domestic Appliances % 1, % Small Domestic Appliances % 2, % Information Technology 1,191 1,074 1,067 1, % 3, % Telecommunication 1,559 1,669 1,964 2, % 5, % Office Equipment & Consumables % % GfK TEMAX KSA 5,201 5,115 5,750 6, % 17, % Source: GfK TEMAX KSA, GfK Retail and Technology Page 5 of 5

6 The survey GfK TEMAX is an index developed by GfK Retail and Technology to track the technical consumer goods markets. The findings are based on surveys carried out on a regular basis by the retail panel of GfK Retail and Technology. The retail panel comprises data from over 340,000 retail outlets worldwide. Since February 2009, GfK Retail and Technology has also been compiling the GfK TEMAX index at international level, in more than 30 countries. It is the first index that includes all of the markets for technical consumer goods in different countries. All reports and press releases are available at If information from this press release or is sited, GfK TEMAX should be explicitly indicated as the source. For further information, please contact: Nadim Shaikh, tel: , nadim.shaikh@gfk.com, Franck Thureau, tel: , franck.thureau@gfk.com. GfK-MEMRB Retail and Technology P.O. Box , Dubai United Arab Emirates Contact: For Telecom: Meghna Bhat Product Manager Telecom meghna.bhat@gfk.com Marina Turner Deputy General manager marina.turner@gfk.com The GfK Group offers the fundamental knowledge that industry, retailers, services companies and the media need to make market decisions. It delivers a comprehensive range of information and consultancy services in the three business sectors Custom Research, Retail and Technology and Media. The No. 4 market research organization worldwide operates in more than 100 countries and employs over 10,000 staff. In 2009, the GfK Group s sales amounted to EUR 1.16 billion. For further information, visit our web-site: Follow us on Twitter: Responsible under press legislation: GfK-MEMRB Retail and Technology P.O. Box , Dubai, U.A.E. Kevin Ribeiro Consumer Electronics kevin.ribeiro@gfk.com Ilias Karaboikis Small & Major Domestic Appliances ilias.karampoikis@gfk.com Page 6 of 5