- Electronic distributors will bag the majority of the sales
- The middle class office-goers will boost the demand for electronic items
Ken Research recently published a report on ‘Electrical and Electronics Retailing in China – Market Summary & Forecasts; Comprehensive overview of the market, consumer, and competitive context, with retail sales value and forecasts to 2020‘, which discusses electronics market by major product type, by leading players, distribution channels and consumer trends and the sheds light on how the existing players can use this information to gain the competitive edge in the market. Additionally, major trends and drivers have also been covered, describing the market penetration and future potential of each product segment.
The report aims to explain how the mentality of the consumer changes with time and how these changes will impact this industry. This impact will generate survival of the fittest condition in the market since only those organizations will survive that succeed to demystify these covert profit generation opportunities into their favor and maintain the leading stance.
China has recently been bearing the burden of a slowdown as this country still follows a hybrid of flexible and fixed exchange rate regimes also known as the dirty float exchange rate regime. In such a system, the People’s Bank of China (PBC, China’s central bank) interferes with the market forces of demand and supply of foreign currencies to avoid any unfavorable movements in its Balance of Payments by successfully manipulating the amount of currency being circulated in the economy. The country has been notorious for adopting beggar-thy-neighbor policies, grabbing every opportunity to devalue its currency to gain the edge in exports in order to support the major restructuring of its economy as it had been planning to induce a shift from being a service oriented economy to a manufacturing based economy in order to insulate it from shocks to the global economy.
The same export advantage argument holds true for the Chinese electrical industry since it is an economy having abundant supply of younger workers comprising the workforce to exploit the economies of scale. It is a diplomatic country with ties across the world that makes use of providing cheap labor to bring the economy’s growth to unprecedented levels. It contributes to nipping the incompetent players in the bud in foreign countries.
The Electrical and electronics segment will mushroom at a CAGR of 10.22% out of which the maximum sales will take place online and this trend will account for approximately 21.8% in the next four years. 6.1% was substantiated by this industry out of the total retail sales of China.