Consumer Electronics Industry in China may almost double itself to around US $129 billion by the year 2010 or will account for 25% share in the global consumer electronics industry, as per McKinsey & Co.
Brands manufacturing TVs & white goods may fade away due to consolidation of retailers in consumer electronics market. The market expected to grow to $129 billion by 2010 from $74 billion in 2005 & $59 billion in 2003. The growth rate, therefore, compounds to 12% annual increase.
Home appliance industry is also going through severe consolidation. Retail chains must focus predominantly on first-tier markets of Beijing & Shanghai. Partnership of Gome Electrical Appliances Holdings Limited & China Paradise Electronics Retail Limited, presently, leads the TV industry in these cities accounting for over 50% of total sales. This may result in reduction of TV brands from around 40 to 10-15 by 2010. Computers & mobile phone manufacturers are expected to survive due to less dependency over retail chains.
"The consumer electronics industry has witnessed a phenomenal growth over the past few years. This growth can be attributed to the increasing effect of state of the art electronic devices on the market. The consumer electronics industry is ushering in the dawn of Convergence," according to "Worldwide Consumer Electronics Market (2006)" published by RNCOS.
Director of McKinsey, Ingo Beyer Von Morgenstern rated all this as a battle for Chinese market. He said that if foreign players lose their hold in China, it wouldn’t be easy for them to emerge as global leader. However, if local players increase their hold, it will be the primary & vital step for them to rise globally.
Related Market Research Reports:
Global Portable Electronics Market
Chinese Consumer Electronics Market till 2011
Consumer Electronics Market in Brazil (2007-2011)
