Saudi Arabia: the TCG market recorded a decline

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As communicated by GfK Temax, the Saudi Arabian technical consumer goods market recorded a double-digit decline of 10.5% in the fourth quarter of 2015 when compared to the same period in 2014. With the exception of small domestic appliances – which reached a growth of 10.7% compared to Q4 2014 – the other sectors registered a decline.

Major domestic appliances
The major domestic appliances sector in Saudi Arabia reported a decline of 11.7% during the fourth quarter of 2015, compared to Q4 2014. Dishwashers and tumble dryers continued to attract consumer spending and both recorded double-digit growth. On the other hand, refrigerators, washing machines and microwaves registered double-digit declines. Average prices increased within the MDA sector with washing machines recording the highest growth, mainly driven by large-load capacities in fully automatic machines.

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Small domestic appliances
In Q4 2015, the SDA sector in Saudi Arabia reported a growth of 10.7%, compared to Q4 2014. All segments registered increases, with the exception of irons and juicers. Deep fryers, hot beverage makers and rice cookers all reported double-digit growth. Personal care products – such as hair clippers, hair dryers, hair styling products, and shavers – grew significantly, as did garment steamers.

Telecommunications
Telecommunications (the largest sector in the Saudi Arabian TCG market) reported a decline of 5.4% in Q4 2015, compared to Q4 2014. Smartphones remain the dominant segment, driven by premium features – including 4G, screen sizes larger than 5.5 inches, and cameras with more than 15 megapixels.

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Consumer electronics
Once again, sales declined in the consumer electronics sector with a 7.7% drop compared to Q4 2014. Video game consoles, the second largest segment, reported only muted growth. However, headphones and loudspeakers continued to generate higher sales. A single-digit decline was reported in the Panel TVs segment, as revenue was supported by the growth of newer technologies, such as ultra-high definition TVs. Double-digit falls were recorded in other segments.

Office equipment and consumables
The office equipment and consumables sector faced a challenging fourth quarter in 2015, recording a decline in sales of 22.2% compared to the same period in 2014. The inkjet and laser printers segments both recorded falls. Supported by multifunctional devices, inkjet printers accounted for a larger share of sales than laser printers. Sales of inkjet cartridges and laser toners also registered declines.

Information Technology
In Q4 2015, the IT sector registered revenues with a 24.7% decline, compared to Q4 2014. All major categories – mobile computing products, desktop computing products, and mediatablets – witnessed a marginal decline. However, 2-in-1 devices reported strong triple-digit growth, driven by convertibles. While sales in recreational gaming hardware such as mediatablets declined, more advanced gaming segments within the mobile computing category sustained sales and demand in Q4 2015.

Photography
The photography sector saw a steep decline of 50% in Q4 2015, compared to Q4 2014. A rise in revenue for Wi-Fi-enabled digital single-lens reflex (DSLR) cameras was again registered. However, this was not sufficient to compensate for lower demand in other segments.

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