Venezuela Consumer Electronics Report Q1 2014

Date: December 4, 2013
Pages: 65
US$ 1,295.00
Publisher: Business Monitor International
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)

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Includes 3 FREE quarterly updates

BMI View: In a series of actions which are likely to put wary investors even more on edge, the Venezuelan government demonstrated it has no intention of changing course or addressing the serious economic challenges that the country faces. We believe near-recessionary conditions will persist over coming quarters and recent changes announced in Venezuela's management of its currency are not significant enough to reverse the overarching trend towards an official devaluation, which we expect to occur in H114. The devaluation will constrain consumer purchasing power and raise the cost of imported products for local consumers.The ascension to full membership in the Mercosur trading bloc by Venezuela in July 2012 is one of the few bright spots for local and foreign companies operating in the country. This potentially opens up new opportunities in markets such as Brazil, Argentina and Uruguay, which Venezuelan companies can export consumer electronics products to, in order to boost growth. This is evident in the business strategies of Samsung, with its joint venture with the government, as well as VIT and Vtelca. Further, BMI expects an expanding population, rising disposable income and easier access to consumer credit to have positive effects on Venezuela's consumer electronics sales over the long term.

Headline Expenditure Projections
  • Computer hardware sales: US$1.32bn in 2012 to US$1.12bn in 2013, -5.2% in US dollar terms. Forecast downgraded last quarter in the wake of the devaluation of the bolivar.
  • AV sales: US$1.10bn in 2012 to US$1.09bn in 2013, -1.1% in US dollar terms. Forecast in US dollar terms downgraded, but Venezuela's digital migration should drive demand for flatscreen TV sets.
  • Handset Sales: US$1.41bn in 2012 to US$1.38bn in 2013, -2% in US dollar terms. Forecast in US dollar terms downgraded, but strength of local manufacturing in handsets and operator subsidies will help to absorb some of the impact of devaluation.
BMI Industry View
Business Environment
Industry Forecast
  Table: Consumer Electronics Overview, 2010-2017
Macroeconomic Forecasts
Economic Analysis
  Table: Venezuela - Economic Activity
Industry Risk Reward Ratings
Americas Risk Reward Ratings
  Table: Americas Risk/Reward Ratings, Q1 2014
Market Overview
  Table: PC Sales, 2010-2017
AV Devices
  Table: AV Sales, 2010-2017
Mobile Handsets
  Table: Mobile Communications, 2010-2017
Competitive Landscape
International Companies
  Table: Samsung Group
Local Companies
  Table: Síragon
  Table: Vtelca
  Table: Venezolana De Industria Technologica (VIT)
Industry Trends And Developments
Regulatory Development
Company Profile
Venezuela de Industria Tecnologica
Demographic Forecast
  Table: Venezuela's Population By Age Group, 1990-2020 ('000)
  Table: Venezuela's Population By Age Group, 1990-2020 (% of total)
  Table: Venezuela's Key Population Ratios, 1990-2020
  Table: Venezuela's Rural And Urban Population, 1990-2020
Industry Forecast Methodology
Sector-Specific Methodology
Risk Reward Rating Methodology
Sector-Specific Methodology
  Table: Consumer Electronics Risk Reward Ratings Indicators
  Table: Weighting Of Indicators

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