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Steep falls across all sectors in Q1: GfK TEMAX
Published in The Saudi Gazette on 03 - 06 - 2016

In Q1 2016, compared to the same quarter in 2015, all sectors in the technical consumer goods (TCG) market in the Kingdom of Saudi Arabia (KSA) declined. Steep falls were noted in the photography (PH), consumer electronics (CE), office equipment and consumables (OE), and information technology (IT) sectors – all of which were down by more than 25 percent. The overall fall in the TCG market was 19.2 percent.
Consumer Electronics
With an overall fall of 31.8 percent, all categories registered large double- digit declines, with the exception of portable media players, memory cards, and USB memory devices — all of which saw double-digit growth. The smart audio segment (within the docking speakers category) and ultra- high definition (UHD) TVs segment (within the Panel TVs category) were the key value drivers.
Photography
In the TCG market, the PH sector witnessed the largest decline in Q1 2016, compared to the same quarter in 2015. Both categories – digital cameras and interchangeable lenses – registered large falls (down by 54.5 percent and 28.4 percent respectively).
Major Domestic Appliances
All categories within the MDA sector reported large double-digit declines in Q1 2016, compared to Q1 2015. The exception was the dishwashers segment — down by 4.2 percent. Despite this result, sales of large-capacity, fully automatic washing machines continued to grow. Also, new launches of higher capacity, freezer-top refrigerators drove the average price of the cooling products category.
Small Domestic Appliances
Despite the overall decline in the SDA sector — down by 11.6 percent, compared to Q1 2015 — the hot beverage makers category reported double-digit growth. Single-serve coffee machines, and percolators drove this category. Low-oil fryers recorded double-digit growth in the deep fryers category, while handheld and handstick vacuum cleaners also reported increases.
Information Technology
In Q2 2016, all categories in the IT sector registered declines, compared to the same quarter in 2015. In particular, media tablets and visual cams saw falls in excess of 40 percent. However, some segments, including ‘2-in-1' devices and gaming PCs witnessed double-digit growth.
Telecommunications
Sales of smartphones reported a fall of 16.9 percent in Q1 2016, compared to Q1 2015. Devices with high-resolution cameras (more than 15 megapixels) and 4G were the key performers in this segment. Phablets (smartphones with screen sizes of more than 5.5 inches) saw double-digit growth, while core wearables rose by 249.4 percent in Q1 2016, compared to Q1 2015.
Office Equipment and Consumables
In the OE sector there were falls across the board in Q1 2016. Within the printers category, both the inkjet and the laser segments witnessed double- digit declines. In the multifunctional devices (MFDs) category, inkjet MFDs were the principal driver of volume. In the printing consumables category, both the inkjet and the laser cartridges segments reported double-digit declines.
GfK TEMAX tracks the sales of technical consumer goods across 41 countries. The findings are based on GfK's retail panel, comprising data from around half a million retail outlets worldwide. GfK continually works to ensure its panel data is as accurate as possible, in terms of its representation of the end market.
GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000 market research experts combine their passion with GfK's long-standing data science experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers' experiences and choices.


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