In the sound and images category, there is still a lot of potential for the growth of the TV and DVD sales as the number of households is increasing and people are looking for new and innovative products. Same is true for mobile phones - in Brazil; the penetration rate of mobile phones was low at just 53 mobile phones per 100 inhabitants in 2006, leaving great scope for companies to play in the market.
The continuous development and digital technologies are revolutionizing the consumer electronics industry. Moreover, the continuously falling prices of consumer electronics with increasing disposable income are giving reasons to more consumers to spend on electronics products and this is indicating that the consumer electronics industry has bright future ahead in Brazil.
Washing machines, freezers, and personal computers are among the consumer electronics with low penetration rates, indicating ample room for growth in sales in the medium-term.
In terms of sales volume, refrigerators will have the highest sales followed by washing machines in the whine line goods during the forecasted period (2007-2011).
In the images and sound segment, the DVD sales will increase with the CAGR value of 8% and have the largest market in terms of volume by 2011. Retailer credit will play a critical role in driving the consumer electronics sales coming from the lower socio-economic segments. Although price will also continue to be a key driver, financing options such as installment plans will drive the penetration into these segments.
It is expected that per head disposable income in Brazil will increase at a CAGR of 1.38% during 2007-2011 and will push the consumer electronics market in the country.
