1. Consumer Electronics Market in South Africa
Report Details:
Published:September 2012
No. of Pages:
Price: Single User License – US$1900
Discover the latest market trends and uncover sources of future market growth for the Consumer
Electronics industry in South Africa with research from Euromonitor's team of in-country analysts.
The Consumer Electronics in South Africa market research report includes:
•Analysis of key supply-side and demand trends
•Detailed segmentation of international and local products
•Historic volumes and values, company and brand market shares
•Five year forecasts of market trends and market growth
•Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
•What is the market size of Consumer Electronics in South Africa?
•What is the fastest growing product category?
•What consumer electronics segments are growing the fastest?
•What are the major technology trends in new consumer electronics products?
•How has the economic downturn shaped consumer purchasing behavior when it comes to
consumer electronics?
•How has the economic downturn shaped consumer purchasing behavior when it comes to
consumer electronics?
Why buy this report?
•Gain competitive intelligence about market leaders
•Track key industry trends, opportunities and threats
•Inform your marketing, brand, strategy and market development, sales and supply functions
EXECUTIVE SUMMARY
Market Performance
The majority of consumer electronics categories, with the exception of camcorders, portable media
payers and mobile phones, performed worse in 2009 than in the previous year. This was due to
the decrease in consumer disposable income as a consequence of the economic recession.
Consumer electronics, in a country where the majority of South Africans do not own a personal
computer or television, are regarded as luxury items. It is therefore not surprising that there were a
decrease in sales of luxury items during the cash strapped times that hit South Africans during
2009.

2. Economic recession
South Africa hosted the FIFA World Cup in June 2010 and this meant that the country had to
undergo several changes to be able to meet FIFA requirements. FIFA required that South Africa’s
telecommunication infrastructure be upgraded to make broadband accessible to all its venues and
that a switch over from analogue to digital television was implemented. In addition, FIFA
compliance has created the opportunity for healthy competition and in July 2009, SEACOM broke
Telkom’s monopoly on international bandwidth and consumers started to see lower broadband
pricing and higher usage limits.
FIFA 2010 World Cup
In South Africa, multinational brands outperformed domestic brands. This can be attributed to
multinational companies’ aim to stimulate sales growth amid the recession. However, even prior to
the recession many multinational companies have been able to offer better value for money. The
South African electronics market cannot compete with the low-priced imports from Eastern
countries and consequently, manufacturing of electronics has been declining. Many South African
companies import electronic components for assembly in the country, resulting in a higher cost per
unit.
Competitive environment
The store based retailing and in particular electronics and appliance specialist retailers remain the
most important retail channels. This can be attributed to the product knowledge and product
variety offered by specialist retailers. Although not nearly as important, internet retailing is
becoming increasingly significant. However, internet retailing is hampered by the fact that the
majority of South Africans do not have a PC or internet access.
Emerging categories to lead the way
In general, the consumer electronics market in South Africa is anticipated to see positive growth
over the forecast period. Growth will primarily be driven by emerging categories like netbooks,
other portable computers, digital televisions and BD Players. South African consumers, as a result
of the World Cup, are expected to see similar uncapped broadband offerings as were seen in April
2010, when MWEB released its uncapped broadband offering introducing a new era of unlimited
internet connectivity.
Get your copy of this report @
http://www.reportsnreports.com/reports/195956-consumer-electronics-market-in-south-africa.html
Major points covered in Table of Contents of this report include
Table of Contents
Consumer Electronics in South Africa - Industry Overview
EXECUTIVE SUMMARY
Market Performance
Economic recession
FIFA 2010 World Cup
Competitive environment
Emerging categories to lead the way

3. KEY TRENDS AND DEVELOPMENTS
ICT Investments
Digital switch-over
The smartphone battle
After sales support
Specialist retailers under pressure
Summary 1 Leading Specialist Retailers 2009
MARKET DATA
DEFINITIONS
Summary 2 Research Sources
Consumer Electronics in South Africa - Company Profiles
JD Group Ltd - Consumer Electronics - South Africa
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
Chart 1 JD Group Ltd: Electric Express and Game in Johannesburg
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 5 JD Group Ltd: Competitive Position 2009
Massmart Holding Ltd - Consumer Electronics - South Africa
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
Chart 2 Massmart Holdings Ltd: Makro in Johannesburg
PRIVATE LABEL
Summary 8 Massmart Holdings Ltd: Competitive Position 2009
Nu-World Holdings Ltd - Consumer Electronics - South Africa
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 Nu-World Holdings Ltd: Competitive Position 2009
Sinoprima Investments & Manufacturing SA Pty Ltd - Consumer Electronics - South Africa
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Sinoprima Investments & Manufacturing Ltd: Competitive Position 2009
Camcorders in South Africa - Category Analysis

4. HEADLINES
TRENDS
Digital camcorders are becoming increasingly popular among consumers due to the ease with
which video clips can be downloaded to a PC and posted on social media sites. However, HD
camcorders are still too expensive for the average South African and volume growth is expected to
be driven by price erosion in the forecast period.
COMPETITIVE LANDSCAPE
Leading players in 2009 were Canon, Sony and Samsung Electronics. Canon has managed to
establish itself in South Africa as the brand that is synonymous with cameras and camcorders in
the mind of the consumer. The brand has been a major player in the South African market for a
long time and has created a niche market for itself among the mid to high-end market segment.
PROSPECTS
Camcorders is expected to show sustainable positive growth during the forecast period with a
volume CAGR of 7%. Digital camcorders and HD camcorders will continue to enjoy positive
growth) however HD camcorders will remain unaffordable to the average South African consumer.
CATEGORY DATA
Cameras in South Africa - Category Analysis
HEADLINES
TRENDS
The migration to digital cameras has taken South Africa by storm in conjunction with the
increasing popularity of social media sites such as Facebook. South African consumers’ interest in
digital cameras has been stimulated by the increasing popularity of social media that encourage
users to share photos.
COMPETITIVE LANDSCAPE
Canon South Africa leads cameras with a 21% share of volume sales, followed by Sony South
Africa with a 13% share and Nu-World Holdings with 11%. Canon is considered the best in terms
of performance and lens quality and is the first choice for consumers that are serious about
photography and that want to take professional photos. However, Sony is considered as the
second best when it comes to lens quality and performance and is gaining popularity among the
younger market segments due to its stylish design. JVC, a Nu-World Holdings brand, is
considered the best quality camera among consumers that want a camera at an affordable price
without compromising on quality.
PROSPECTS
The camera sector and digital cameras in particular is expected to show sustainable positive
growth over the forecast period. Digital cameras will gain popularity due to the increase in users of
social media sites such as Facebook.
CATEGORY DATA
Computers and Peripherals in South Africa - Category Analysis
HEADLINES
TRENDS
In July 2009 SEACOM arrived and consumers started to see lower broadband pricing and higher
usage limits. During Q1 2009, South Africa’s economy showed negative growth for two

5. consecutive quarters. South Africa's gross domestic product (GDP) growth rate for Q1 2009 stood
at -6% compared with a -2% contraction during Q4 2008.
COMPETITIVE LANDSCAPE
Acer Africa (Pty) Ltd leads computers with a 23% value share, closely followed by Dell SA Pty Ltd,
also with a share of 23% and Mecer SA Pty Ltd with a 13% share. Microsoft SA Pty Ltd led
peripherals with a 12% share, reflecting the fragmented nature of this category.
PROSPECTS
SEACOM’s arrival will be followed by competitors such as EASSy (operational in July 2010) and
WACS (to arrive in 2011). Another important development happened in April 2010 when MWEB
released its uncapped broadband offering. This introduced a new era in South Africa - unlimited
internet connectivity. However, this offering is only for ADSL and ADSL line rental in South Africa
which is relatively expensive. The internet is still something that only the marginally wealthy can
afford.
CATEGORY DATA
Home Audio and Cinema in South Africa - Category Analysis
HEADLINES
TRENDS
As mentioned, the economic recession impacted negatively on the home audio and cinema sector
in South Africa. The sector showed a decline in sales volume and value for 2009 compared to
2008. Consumers had less money to spend on less ‘essential’ CE products like home audio and
cinema products. In general, home audio and cinema products are considered to be less essential
for reasons such as consumers already having televisions with built in audio systems or they are
able to listen to radio on their PCs via streaming audio.
COMPETITIVE LANDSCAPE
Home audio and cinema products is characteristic by a relatively healthy, competitive
environment. During the period under review more established brands such as LG, Samsung and
Panasonic performed better than less established brands such as Sansui, Sony, JVC, Sinotec,
Telefunken, Wharfedale, Pioneer and Hyundai. LG, Samsung and Panasonic brands are more
trusted by South African consumers, however they are too costly for the average person. While
less established brands are more affordable.
PROSPECTS
The sector is expected to see slight but stable volume growth over the forecast period. The growth
will be driven by the consistent rise of innovative products at the forefront of technological
advancement. As new, more advanced products appear on the market consumers will replace
their old products.
CATEGORY DATA
In-Car Entertainment in South Africa - Category Analysis
HEADLINES
TRENDS
The motor industry was particularly hard hit by the economic recession with many dealers closing
their doors. Consequently, fewer vehicles were sold and hence the sales volume of the following
in-car entertainment categories dropped: media players, CD players, DVD players and speakers.

6. In-car navigation was the only category that performed better in 2009 compared to 2008.
COMPETITIVE LANDSCAPE
In in-car media players, Amalgamated Appliance Holdings and Nu-World Holdings were the
leaders, while in in-car navigation, Garmin International Inc, Route 66 Geographic Information
Systems and TomTom International BV led sales. The leaders in in-car media players are popular
among consumers that drive older vehicles and that want to buy media players that are more
affordable.
PROSPECTS
In-car entertainment is expected to grow at a CAGR of 8% in volume terms to reach 411,000 units
in 2014. However, in-car navigation will outperform all other categories. This is because South
Africa has many first time in-car navigation buyers.
CATEGORY DATA
Mobile Phones in South Africa - Category Analysis
HEADLINES
TRENDS
Prior to 2009 smartphones were only affordable to high-income consumers. However, during 2009
smartphones gained momentum among the lower income segments. This is mainly due to the
drop in smartphone pricing. The smartphone is regarded as the latest in mobile technology and is
becoming the must have commodity for trendy younger consumer (16-30-years-old). The bigger
screen size makes it easier for users to browse the web and interact on social media sites while
commuting and going about their daily lives.
COMPETITIVE LANDSCAPE
The overall leading players were Nokia and Samsung in 2009. Nokia is an established brand
within the mobile market and represents trustworthiness and quality for money. Samsung although
also considered as a trustworthy brand has managed to establish itself as the ultimate in style and
design. It is therefore not surprising that Samsung has also shown the biggest increase in share.
PROSPECTS
Mobile phones is expected to see sustainable growth throughout the forecast period since 3G
mobile data will become increasingly affordable.
CATEGORY DATA
Portable Media Players in South Africa - Category Analysis
HEADLINES
TRENDS
Portable media players are increasingly supporting bigger memory at affordable prices. Portable
multimedia players showed the highest growth which can be attributed to Apple’s popularity
among the youth. When comparing the volume sales (2009) for mobile phones, netbooks and
portable media players, mobile phones currently outperform the other two categories. However,
mobile phones are increasingly offering consumers the same functionality as the other two.
However, consumers constantly on the go still prefer netbooks to mobile phones when it comes to
producing documents and extensively browsing the internet due to bigger screen size.
COMPETITIVE LANDSCAPE
Apple Computer Inc led with a 30% share of volume sales in 2009, followed by Sony South Africa

7. with 14% and SanDisk with 11%. Apple and Sony are popular, familiar brands among consumers
and are therefore the popular choice among consumers. However, SanDisk products became
more affordable and the company has managed to create a niche market among the mid to lower
end consumer segment.
PROSPECTS
Portable media players such as iPods are expected to show steady growth in terms of value
during the forecast period. Apple’s iPod is the brand expected to maintain its position within the
top three most popular brands. The Apple iPod is known for its slim design and trendy look and
appeals greatly to the younger population.
CATEGORY DATA
Televisions and Projectors in South Africa - Category Analysis
HEADLINES
TRENDS
The Soccer World Cup has meant that South Africa had to spend a lot of money on ICT
infrastructure in order to meet the FIFA requirement that broadcasting is digital. This has
accelerated a R1 billion switch-over from analogue signal to digital terrestrial television. Initially it
was said that by the time of the World Cup (June 2010) close to 80% of South Africans watching
the World Cup will have access to digital television. However, since initial reports, it has been
stated that only 50% of South Africans will have access to digital televisions by June 2010.
Nevertheless, this will give many South Africans who do not have computers access to the
internet. Once migration to digital terrestrial television is complete, South Africa’s airwaves will be
able to support up to eight times as many standard-definition television channels as currently. This
will mean South Africa will have more channels delivering local content.
COMPETITIVE LANDSCAPE
The companies which lead sales are Amalgamated Appliance Holdings, Samsung and One
Diamond Electronics, Inc. Amalgamated Appliance Holdings’ success can be attributed to the fact
that it successfully targets the middle and lower-income consumers by offering lower prices, albeit
for less established brands such as Sinotec and Sansui. Sinotec, one of the very few domestic
brands (manufactured by Sinoprima Investment & Manufacturing) also performed well in the home
audio and cinema systems category. On the other hand, higher-end consumers are more likely to
buy Samsung and LG products.
PROSPECTS
The switch-over from analogue to digital televisions will lead to a significant increase in the sales
of digital televisions. The eco-friendly trend is expected to become more prominent among South
African consumers in the future. This could lead to an increase in LCD televisions compared to
plasma televisions since LCD televisions are perceived as more eco-friendly.
CATEGORY DATA
Video Players in South Africa - Category Analysis
HEADLINES
TRENDS
Consumer interest in Blu-ray high-definition DVD technology has gained momentum. However,
DVD players still perform better and it will take time before South African consumers become

8. familiar with BD players. This is mainly because many consumers are uneducated about Blu-ray
high-definition due to a lack on advertising. In addition, Blu-ray HD DVD players are also more
expensive than ordinary DVD players.
COMPETITIVE LANDSCAPE
The leading players in the BD player category were Samsung, Philips and LG. In the DVD player
category Sony, LG and Samsung were the leaders. While in video recorders, the leading players
were Sansui, Sanyo and Panasonic. Samsung and LG are the strongest players in the overall
video player category. This is due to their effective marketing campaigns portraying their brands
as the latest in terms of technology and style. Samsung and LG effectively target the young and
trendy market segment through television sponsorship of programs that are popular among the
younger market segment.
PROSPECTS
The sector is expected to show steady growth from 2009 to 2012, however, after that negative
growth is expected up to 2014. The category value in 2014 will be relatively smaller than the value
at the beginning of the forecast period in 2009.
CATEGORY DATA
Contact: sales@reportsandreports.com for more information.