1. The Consumer Electronics retail market will represent a ~$100 Bn opportunity by 2027…
The electronics market in MENA is currently ~$60 Bn and is forecasted to grow at a CAGR of 9% to be a ~100 market by 2027. UAE & KSA account for close to half of the market currently and their share is expected to further increase, going forward as these regions are extremely digitally savvy and boast of high disposable incomes. Additionally, the transition towards a digitally enabled lifestyle, observable across the MENA region will drive future demand for electronics products.
2. …driven by remote working/learning, rising disposable income, flexible payment options…
The proliferation of remote working and learning drove an increase in penetration of laptops and phones across the broader region and the consumer shift towards a healthy lifestyle and in-home entertainment consumption, has driven demand for product categories like gaming, wearables, home audio and cinema. Furthermore, rising disposable income across the region coupled with pandemic infused lifestyle changes has also driven up the discretionary spend on electronics products with retail-fintech partnerships playing a crucial role as well in facilitating demand, by increasing the affordability of electronics devices for broader segments of society.
3. …with the online channel powering most of the growth
Consumers are increasingly gravitating towards online channels, owing to the product variety, competitive pricing, and ability to access user reviews. E-Commerce players are experiencing strong customer stickiness, as consumers are recording higher satisfaction shopping with online retailers compared to offline retailers. Growth in online sales will be driven by increased shopping frequency, growing online shopper base, and evolving consumer demands on service parameters. The electronics sector will witness ~23% CAGR in the online channel over the next 5 years.
