Consumer Electronics Market in Malaysia-Thesis and Dissertation Writing Help
Executive Summary
Consumer Electronics Posts A Higher Growth in Sales and Demand in 2008
Consumer
electronics for the various sectors and categories recorded a higher growth in
overall sales and demand for 2008.This is attributed to consumers being more
aware of new technologies in the market as well as major players who are
pushing for better sales with constant changes in price structures for new
models of consumer electronics in the various sectors and categories.
Cheaper Lcd TVs Due To More Local Content and Better Manufacturing Facilities in Plants
Due to constant
demand and better manufacturing facilities in from the plants, the Malaysian
market has enjoyed a better selection of LCD TVs; major electronic
manufacturers such as Sony and Sharp have invested huge amounts in their
plants, which has resulted in more local contents for the LCD TVs. With better
R&D and intense competition for a better market share, LCD TVs from major
electronic companies are now shifting their manufacturing capabilities to
Malaysia due to the higher demand and cheaper local contents. From this
perspective, more consumers are now able to buy the next generation of TVs
(LCDs), which offer better displays in terms of technology and space saving.
Sales of Mobile Phones on the Rise in the Malaysian Market Due To Increasing Demand
With a wide
variety of models and network plans to choose from, consumers are spoilt for
choice, which has resulted in an average of more than one mobile phone per
consumer in the Klang Valley. In line with the huge demand, major mobile phone
companies such as Nokia, Samsung and Sony Ericsson are intensifying their
competition in the market by with the constant launch of new mobile phones with
better features, designs, practicality and attractive pricing.
Blu-ray Disc Players and Recorders To Set the Next Level of Entertainment
With the
introduction of Blu-ray disc technology, which is claimed to be more
technologically advanced with greater memory and playability, Blu-ray disc
players and recorders are set to become the next level of entertainment. In
line with this, Blu-ray players and recorders are constantly being launched from
major consumer electronic companies such as Sony, Samsung, LG and Hitachi as
they are making use of new technologies created in their R&D facilities to
remain competitive in the market. While DVD discs and players are still
available in the consumer electronic market, more consumers are becoming aware
of this new offering and the capabilities that Blu-ray can offer.
Consumer Electronics Is Expected To Grow Positively in the 2008-2013 Period
The forecasted
period from 2008-2013 will see a positive growth in terms of overall sales and
demands from consumers. This will be contributed to by constant new
improvements, upgrades and technologies, introduced by major players after
carrying out extensive R&D activities. The trend is expected to continue so
long as there is demand and awareness by the consumers.
Key Trends and Developments
Sales of Pdas Are Declining As More Mobile Phones With Pda Features Are Launched
There are
numerous companies in the market which are launching mobile phones with PDA features
due to the popularity and demand from consumers who wants a device with
built-in PDA features for their daily usage and work. Due to this emerging
trend, there is a demand for these hybrid devices, which in turn affects the
overall sales of PDAs as they generally do not have phone functions.
Outlook
This trend is
likely to remain over the long term as the combination of features from these
devices will ensure maximum usability of functions for users to manage their
daily lives. The expected future of this trend will continue as more developers
and major manufacturers are setting the trend for more consumers to be aware of
this new trend in the market. With more players in the market, consumers are
spoilt for choice due to the emerging models and available brands. Prices will
continue to remain reasonably low so long there is a healthy competition among
major players in the market. However, this will impact the sales of PDAs and
will result in players concentrating on their R&D in mobile phones that are
equipped with PDA functions rather than solely relying on the sales of PDAs in
the market.
Current Impact
The current
trend for this is creating an impact for PDAs, which fall under the portable
computer sector. There was an increased demand for these devices due to their
portability, usability and functions. In a way, the mobile phone sector has
seen an increase in growth due to the increase in demand. Sales of PDAs are in
decline as more mobile phones with PDA features are launched by major phone and
consumer electronic companies. With this, more companies are focusing on hybrid
phones/PDAs as the demand for these devices are increasing. More customers and
consumers are aware of the new technology. Manufacturers have begun creating a
new trend in the market with this new product development targeted at consumers
in the mobile phone sector.
Future impact
The demand for
PDAs will continue to decline with the introduction of new phones with PDA
features in the market. Consumers will be more focused on phones with these
features to help them with their daily routine. Hence, the competition for new
devices and models between manufacturers will increase in the near future in
terms of gaining a better share in the market. With this, there will be a shift
in the trend as consumers will become more aware of this new trend in the
market in the future.
Gps (global Positioning Satellite) in Car Modules on the Rise Due To Practicality and Functionality
The introduction
of GPS, which used to be only used for military purposes, has been widely
accepted and is now available via handheld units in cars. Their practicality
and functionality has ensured that there is a demand by consumers, which has
resulted in the launch more models. Most car accessory shops in Malaysia now
retail GPS systems for car modules due to their popularity.
Outlook
GPS systems are
considered to be useful tools for locating places and acquiring directions and
currently the demand for GPS systems in car modules is on the rise due to their
practicality and functionality. With this unique feature and capabilities, the
trend is expected to continue in the future as more people are aware of the
usefulness; demand is expected to increase in the future.
Current Impact
With more
awareness of these electronic gadgets from companies and increased congestion
and new roads in the city centre, more people are aware of the practicality and
functionality of these gadgets. An increase in this sector, which falls under
the navigation systems, was seen in the market. More companies are becoming
involved in this sector and retailers/distributors were seen marketing more of
these products to create more awareness and growth for the sector.
Future impact
There will be
positive growth in this sector due to better competitions and marketing from
similar companies offering GPS gadgets. Growth in this sector will push for
more innovations, new products and better quality among similar products
offered by companies. Besides this, there will also be cheaper alternatives to
these gadgets as more market players will ensure the market remains competitive
in the future. Overall, the trend is currently on the rise among consumers,
with a steady growth forecast for this sector.
Specialised Stores Are the Fastest Growing Distribution/retail Channel in Malaysia
As the consumer
electronic sector has the potential to grow in the future in the Malaysian
market, various distribution/retail channels are cashing in to take advantage.
In view of this, specialised stores are currently the fastest growing
distribution/retail channel in Malaysia compared to other channels in Malaysia.
Most specialised stores offer consumer electronics retailers appeal to
consumers because they offer promotions, have ongoing discounts for their products,
or have good retail displays.
Outlook
Specialised
stores are currently setting the trend in Malaysia as they are mostly
specialising in selling consumer electronics to consumers. These stores usually
stock the latest models available in the market and are much cheaper compared
to other retail channels. This is expected to be the trend in the future as
consumers will eventually be aware of what specialised stores are offering to
them in terms of products and prices. With this in mind, the outlook will be
positive for this distribution/retail channel as consumers’ custom will improve
the prospects for specialised stores in the near future.
Current Impact
With this retail
channel being emerging as the fastest growing distribution channel in Malaysia,
other distribution and retail channels are already losing out to the channel as
it becomes more popular among consumers. Other retail channels are currently
coping with better ideas and improving their sales and retail strategy in order
to remain competitive in the market. Consumers are aware that specialised
stores are currently the retail channels that they can rely on to purchase and
obtain information about latest consumer electronics, and which have attractive
prices due to the promotions and ongoing road shows which they have organised.
In view of this, other retail channels need to improve their sales and service,
provide better prices and more variety of models and major brands so that they
remain competitive in the market for this sector.
Future impact
Specialised
stores will continue to dominate the market and more retailers will be shifting
their trend to become a specialised store/retail channel. Distributors and
major players will become more aware in terms of distributing new products to
retail channels due to the current demand by customers for this retail channel.
They will need to analyse the fastest and most demanding retail channel from
time to time to ensure that their products are being reached and targeted to
consumers in a more effective way. On the other hand, other retail channels
will continue to have a decline in sales and demand due to specialised stores,
which are forecast to dominate and become the fastest growing retail channel
for this sector.
Cheaper Mp3 Players Due To Cheaper Electronic Circuits and Memory
Most mp3 players
are now available with a higher storage capacity at a cheaper price due to the
increase in production to meet the demands in the market. As such, consumers
are now able to purchase mp3 players at a more attractive price in the
market.
Outlook
With a vast
variety of mp3 players available in the market, offered by various
manufacturers, consumers are spoilt for choice when it comes to purchasing
them. The trend is likely to evolve and continue due to higher demands; mp3
players are becoming cheaper due to cheaper sources of electronic circuits and
memory. As a result, the growth will increase for this sector as it becomes
more affordable for consumers in the market. Moreover, as demand for players
increases and newer technologies become available in the market, the trend is
likely to stay and increase over the forecast period.
Current Impact
The trend is
currently increasing in line with high demand due to better pricing and
affordability in the market. As mp3 players get cheaper, more consumers are now
purchasing these players, which has resulted in better demand. The trend has
manifested itself by companies introducing new product development with better
functions and bigger memory capacity for the mp3 players in their product line
up. The current trend has been continuing due to there being more choices of
players with better functions and better prices. With the rise and demand for
more storage and better functions in mp3 players, major players have now
resorted to enhancing their products, which has resulted in manufacturers
increasing the production of electronic circuits and improved memory capacity
for mp3 players.
Future impact
Manufacturers
will take advantage of this by offering and launching newer products with
better capabilities and pricing due to stiffer competition from other similar
manufacturers. This is a positive movement for the sector market as growth will
continue to increase with the activities and strategic ideas from manufacturers
and consumer electronic companies.
Mini Portable Laptops Gaining Popularity With Taiwanese Giant, Asus, Setting the Trend
Mini portable laptops
are setting the trend in the notebook sector with the introduction of netbooks,
dubbed ‘mini portable laptops’. These netbooks are light, small, and easy to
carry and come with a host of laptop capabilities encased in a small case,
which is smaller than most notebooks in the market. Although they might not
have some of the functions found in notebooks, they are capable of performing
daily word processing and allow consumers to access the Internet. These
functions and capabilities have ensured that they remain one of the most
popular consumer electronics in the computer sector for the market. More
players are now beginning to launch their own version of netbooks to gain a
better share of the market.
Outlook
The trend will
definitely stay and remain positive over the long term as more consumers and
users are opting for lighter and smaller laptops whether for their work or
leisure purposes. They are aware of the functions and performance of netbooks,
which are quite similar to laptops; and with an affordable price, more
consumers are opting towards this trend. The trend will manifest itself in
better product development as this is the next generation of ultra portable
laptops to be offered in the market. This trend will remain in the forecast
period as more consumers are moving towards lighter and more portable laptops.
Current Impact
With the current
trend of consumers to opt for light devices, major computer companies are
introducing laptops that are lighter and smaller. Taiwan’s computer
manufacturer, ASUS, is setting the trend with its successful launch of mini
portable laptops for consumers. This has set a trend for laptop users to shift
to and use smaller and lighter laptops due to their ultra-portability. This
trend is on the rise and has spurred the overall growth of the personal
computers sector. Manufacturers realise the importance of the trend and tend to
be more proactive in introducing a larger range of laptop models; this results
in a positive movement for market development among computer manufacturers.
This trend will continue to benefit consumers and electronic component
manufactures as demand will increase over the forecast period. With this
activity, consumers will have a larger choice of models, which will result in
manufacturers enjoying better demand for their components.
Future impact
With this
activity, competitions will definitely rise among computer manufacturers and
will pave way for better research and product innovations. This will continue
to be the trend among consumers who demand portability for work and leisure;
the market will see more players introducing improved netbooks in terms of
features, size and affordability. With this healthy competition, consumers will
continue to spur the sales with a strong overall demand for this category.
