Consumer Electronics Market in Greece-Dissertation Writing Help
Executive Summary
Consumer Electronics Keep Growing
The consumer
electronics market in Greece keeps growing, although the financial state of the
average citizen has not seen a significant improvement since the last review
period. However, contrary to the fears expressed, the main sub-sectors of the
market registered positive grow, while the market as a whole registered almost
the double grow in comparison to 2007. However, some individual product
categories are maturing and slowing, while others influenced by the
cannibalisation of product categories registered significant decreases in sales
volume and value.
Modern Identity and Falling Prices the Main Factors for the Stability of the Consumer Electronics Market
The strong
performance of consumer electronics in Greece has been the combination of two
factors. Firstly, the adoption of the modern, western identity - in this way of
living time is precious and technology is essential, no matter of the real need
for technological products, the cultural need has become dominant and
unquestioned. Furthermore, taking into account the tendency of Greeks to
identify with the West instead if the East, it has become apparent that this
idea has been established as part of their identity. Secondly, the market is
boosted by falling prices and the more affordable the products become, the
higher the demand is. The combination of these two factors makes the market a
growing one, despite the financial difficulties the average Greek faces.
Lcd Screens Continue To Lead the Way
LCD screens
continue to lead the market. Two sporting competitions in 2008, the Euro Cup
and the Beijing Olympics, generated a wave of interest in large screens
televisions. It is not the first time that this subsector was boosted by a
sporting competition, it seems that it remains an important factor, no matter
how temporary it is. At the same time, falling prices, offers made by retailers
during the review period and the expectation of the new digital TV era, helped
the market to grow.
Strong Players Increase Their Shares
The tendency of
the competitive environment during the review period was for the strong players
of each sub-sector to increase their share over the weaker players. This can be
seen as a consequence of the entrance of new international players and of the
strong retail networks they have already been built. Moreover, the mature
nature of many subsectors does not leave space for major and sudden changes in
the market.
Optimistic Future for the Consumer Electronics Market
In the near
future, it is expected that digital technology, the domination of mobile
devices and the tendency of falling prices will continue to support the market
of consumer electronics in Greece. At the same time, some sub-sectors should be
expected to register quick growth due to technological advantages and moreover,
new products will be introduced to the market. However, this automatically
means an equally negative growth for other subsectors and the elimination of
other products from the market. Generally speaking, the market is expected to
grow as a result of the aforementioned tendencies.
Key Trends and Developments
Mobility Boosts Sales of Specific Sectors
One of the most
influential and recent trends is the tendency for mobility, in other words the
tendency to use portable devices. The trend emerged a couple of years ago and
has steadily increased; it tends to dominate the modern way of living.
The trend
influences directly the consumer electronics market, as it is trend that comes
and refers to technology. Consequently, the results of such a trend become
apparent when it comes to the market of consumer electronics, for example,
laptops increase in sales where desktops drop. The mobile phones market has
continued to grow (although the market is mature), and portable DVD players
(mp4) have increased their share in comparison to the non-portable ones.
Outlook
The trend is one
of the most influential and dominant tendencies of the modern western world. It
is based on the needs of modern, western life and on demanding, professional
careers. As time and space are constantly compressed (travelling from one part
to the world to another is easier than ever) mobile services have become a
necessity. At the same time, in terms of work, the necessity to be always
up-to-date and available to be contacted, make such services of crucial
importance. It has become apparent that mobility has dominated both work and
leisure and it is unlikely to fade away in the near future. On the contrary, it
is more likely to completely dominate the market in favour of all the portable
products.
Current Impact
The tendency for
mobility has influenced consumer electronics over the review period as some of
the subsectors of the market have been favoured, while others have declined.
The main subsectors that have been affected are computers (both desktops and
laptops), mobile phones, mp3 players, DVD players (both portable and non-portable)
and in-car navigation systems.
The impact of
the trend was felt throughout the review period and across the different
sectors. As the trend concerns a tendency for portable devices, it became
apparent that new product development had to adapt to it, as the trend favoured
new mobile services.
The trend could
be characterised as positive for market development, since it boosted the
market at a time when the economy was shrinking and facing a difficult period.
Its significance lies with the fact that it boosts a part of the market while
at the same time it reduces a smaller part of it. The consumers are responding
very well to the idea of portability and it is up to the manufacturers to
explore this tendency further.
The reality is
that consumers are requesting for more mobile products and manufacturers have
expressed an interest on turning as many services mobile as possible. For
example, the trend favoured portable DVD players, laptops and mp3 players
rather than desktops, simple DVD players and home audio and cinema systems.
Future impact
The trend is
expected to play a key role in the period 2009-2013 as it is expected to
further dominate the market and so it can serve as a guide to consumers’
expectations. This can be explained by the modern-western way of life, which is
fast living and demands great organisation. Devices that can offer many
possibilities and services to consumers who is always “on the move” becomes of
high significance. As this way of life is the dominant one, it is likely that
the trend for mobility to be boosted even more in the years to come.
This trend is
likely to influence the market by 2013 in a way that it will be different from
2008. As a result, it can be expected that the market in 2013 will be dominated
by portable devices. Thus, the trend will affect the consumer electronics
market to a great extent as the period under examination revealed the main
sectors that will be affected are the ones that allow the possibility of
portability. Such sectors include portable music players (mp3), portable
computers, portable navigation systems and portable imaging (TV mobile is a
reality).
Manufactures can
develop products that explore the trend more. Even sub-sectors as the LCD
televisions, which are the leaders of today’s market, are likely to be
influenced by this trend. The trend in based on new product development while
packaging can follow as it can promote the “need” for mobility further.
The future
strategies adopted in relation to this trend will mainly involve advertisement
campaigns. These campaigns should emphasise on the “need” for mobility,
suggesting that the products that are linked to it support a successful and
modern lifestyle. This trend is likely to shrink part of the market but at the
same time it promotes the further development of a larger part. Moreover, it
leaves space for the development of the field in ways that do not exist today.
Digitalisation Guarantees the Establishment of the Market
Digitalisation
is a trend that is has been developing for a longer period of time than
mobility and it is not as radical as it used to be. However, it remains a trend
that influences the market and it still determines which sectors are likely to
be further developed.
As the trend is
strongly connected to technology, the consumer electronics market is heavily
influenced by it. More specifically, the trend mostly influences the sectors
that still use analogue technology, such as analogue TVs, and at the same time
pushes the rest of the sectors towards more sophisticated digital technology.
Outlook
The trend has
been developing for a quite some time, however, it remains one of the
mainstream tendencies of modernity and so it is likely not to fade away in the
near future. On the contrary, the “digital era” remains the symbol of high
technology and so every product connected to it signifies a wanted consumer
good for the modern citizen.
Current Impact
The trend has
dominated the consumer electronics market as one tendency of the market is to
develop digital products. At the same time, the tendency has shrunk the market
for non-digital products. More specifically, analogue TVs have experienced a
drop in sales, while the digital products such as LCD and HD TVs continue to
grow.The impact of the trend has influenced every sector of the market because
it has boosted the need for more sophisticated, digital equipment. At the same
time, it has put into decline the market for non-digital products.
The trend can be
seen as a positive development for the market even though it has shrunk some
parts of it because it has pushed the development of new products forward and
enhanced sales. In that sense, it is one of the main reasons that the market is
still growing, although the financial situation of the average Greek would
suggest otherwise.
Advanced
technology has turned out to be the battle-ground among major manufacturers in
the consumer electronics industry. Competition among them is focused on
producing electronic products with the highest resolutions, the slimmest sizes
and the most appealing profiles to catch the consumers’ eye. Consumers
attention is attracted by hi-tech products and so the more sophisticated
techology used the better for the market. Possessing a hi-tech product has
become part of a more complete identity and so consumers try to keep updated
with the latest product developments. Manufacturers are trying to continually
develop more digitisal products even if this means the decline of some other
subsectors that cannot compete with the new ones. For example, DVD players and
mp3 players tend to dominate the market and at the same time cassette players
and CD players are in decline. Another example is car navigation systems and
in-car DVD players, which are steadily increasing in sales, as they are more
technological advanced compared to other car accessories.
Future Impact
The trend is
expected to remain dominant in the near future, meaning that high techonology
will continue to influence the market.
In other words, this means that some subsectors such as VCRs or CRTs will
steadily decline in sales, while others such as HD LCD televisions or any
prospective new products are more likely to increase in sales.
The market is
heavily dependent on this trend as technology is the driving force of the
market. In reality, technology is what the consumer electronics market sells so
its significance can be easily understood. Consequently, all the sectors are
equally influenced by this trend.
Advertisement
campaigns can play a key role in maintaining the trend. They can emphasise the
quick pace by which technology evolves and are able to connect the
sophistication of hi-tech products with modern life - the more technologically
advanced a product, the more sophisticated the owner will become with its
possession.
Digitalisation
is based on new product development and so this is the sector in which such a
trend manifests. Manufacturers can maintain the trend by developing new digital
products and by replacing their existing ones quickly so that the market keeps
its quick pace. Obviously, the trend favours consumption and so manufacturers
and retailers are the first to benefit from this trend. On the other hand, the
trend undermines a part of the market as some of the products are already
considered dated. However, in general it works in a positive way for the market
as a whole because it generates a strong tendency for consumption and it boosts
new product developments.
Environmental Consciousness Will Set the Rules in the Near Future
Unlike the two
previous trends that concern strictly the technological world, the emerging of
eco-friendly thinking is a more general tendency. The trend is a recent social
development, coming from the western world but starting to be influential in
Greece too. It became more widely accepted after the 2007 wildfires in Greece
and events such as “Live Earth”. Although the trend is not directly connected
to the consumer electronics market, it has become so influential that it is
being introduced in most market sectors including consumer electronics.
Outlook
The trend is
likely to evolve even further and to become one of the most influential modern
tendencies. It is already considered to be a global trend and the number of
sectors and markets influenced by it is steadily increasing. This estimation
can be supported by two main arguments. Not only has it already become a global
trend, it has not relied on advertisements or fashion. It is supported by hard
evidence, meaning that the problem is real and needs to be taken into account.
Consequently, the trend can be expected to play a key social role in the years
to come.
Current Impact
The trend has
only recently been introduced to the market and it mainly concerns the future
planning of the companies. However, most of the companies have already introduced
their environmental strategies, for example on their websites, in an attempt to
show that they are interested in this subject. As this is a general trend that
does not concern only the consumer electronics market, the companies have also
followed a more general line towards the issue. In doing so, the trend has
influenced the market as a whole and not a specific subsector.
The trend can
potentialy by a positive influence for the market, as gaining the trust of the
consumers in such an issue can further increase sales. However, currently it
does not seem to have influenced the market to a great extent.
Future Impact
The trend is
expected to play a key role in the next years and most manufacturers are
expected to follow an eco-friendly policy, with advertisements campaigns
expected to underline such policies. The trend holds great potential as it has
not yet been fully realised and explored by both manufacturers and retailers.
Therefore, there is space for the trend to grow and is therefore expected to
shape the market until 2013.
Moreover, ways
for the trend to be used in the market have been expressed and planned but not
yet applied. For example, a potential
way for the trend to be implemented would be to introduce recycling of the old
devices (the scheme has been introduced but it is not yet popular). Secondly,
manufacturers could develop and launch “greener” products.
The trend is
more likely to influence the market as a whole, instead of a specific
sub-sector or sector. This is because the trend is new and has not yet been
applied to any sector and secondly, it is a social and general trend instead of
a trend that concerns the technological market specifically. Therefore, it does
not work in favour of one sector and against another.
The trend will
manifest itself in new product developments but also in packaging, the market
as a whole and finally advertisement. It is unclear which party will benefit
the most from this trend. However, it can be suggested that the market
development as a whole will have an opportunity to grow and expand in a new
direction. The trend can be potentially positive for the market because a trust
relationship between the companies and the consumers can be developed, which
will encourage the consumers to buy. Marketing can be used to build such a
relationship; advertisements that show the environmental policy of one company
can be expected to positively influence its sales and its relationship with
consumers.
Falling Prices and Credit Facilities Support the Market
A trend that
concerns strictly the consumer electronics market is the falling prices within
that market. This tendency has been observed for at least a couple of years and
it reflects the high competition of the market. Moreover, credit choices are
made available to the consumers and have been proved very popular among Greek
consumers. In other words, falling prices and credit facilities support the
market in a period of a shrinking economy in Greece.
Outlook
Average unit
prices are experiencing declines across all segments of the consumer
electronics market including televisions, DVD players, audio systems and
computers, media players, digital cameras, camcorders and mobile phones.
At the same
time, most consumer electronics retailers are continuing to offer various forms
of credit to their consumers. These are typically described as interest-free
instalment plans, loans and in some cases even agreements to purchase the
product now and start paying for it at a later date. This provision of credit
facilities is in keeping with the banking institutions’ eagerness to expand
their business. As a result, most banks support consumer electronics retailers
in offering credit, whether by providing loans and credit cards to consumers or
by lending money directly to retailers to enable them to provide credit
facilities to customers.
Current Impact
Product pricing
has always been an important factor in all markets. In the case of consumer
electronics, pricing and purchasing terms play a decisive role for potential
customers, since many of the products are of a high cost and considered to be
“luxuries” rather than “necessities”. Price reductions and credit facilities
were therefore highly influential in boosting sales across all market segments
of consumer electronics during the review period. This effect was even more
evident in the “expensive” segments, such as digital televisions, computers,
home cinema systems, and portable multimedia and other players.
Manufacturers took
the opportunity to launch new, hi-tech electronic products that were appealing
to consumers, especially younger ones, while consumers also took advantage of
the price reductions that gave them access to technological innovations
(palmtops, 3G mobile phones, iPods, navigation systems and LCD TVs) without the
need to spend large sums of money.
Future impact
Falling unit
prices and the provision of credit facilities are of key importance to the
development of the Greek consumer electronics market, as they help to maintain
customer demand at relatively high levels, while also benefiting the average
consumers who can now purchase hi-tech products that were previously beyond
their financial capacity.
Generally
speaking, the provision of credit facilities has had a positive effect on
market development and benefits not only consumers but also manufacturers and
retailers, who can increase their sales. Sales under instalment schemes help to
sustain demand for expensive electronics products (which would otherwise be
beyond most consumers’ budgets) and even encourage the development of new,
sophisticated and highly innovative products. This is particularly helpful for
premium brand manufacturers such as Sony, Philips and Nokia, whose products are
more expensive than those of their competitors. This trend has lately been seen
in purchases of cheaper items as well and consumers have become accustomed to
buying products costing as little as €100 on instalments. It is therefore
predicted that the trend will gradually extend to cover the whole market during
the forecast period.
On the other
hand, many argue that it was the adoption of such practices that forced several
consumer electronics retailers into bankruptcy in recent years, since they were
unable to meet the financial cost involved, and the market may also experience
more such phenomena in the near future.
