The TCG market in Colombia increased by 8.2% in the first quarter of 2016, compared to the same period in 2015. Growth was driven by the positive performances of the three main sectors – telecommunications, major domestic appliances and consumer electronics – with growth rates of 22.6%, 18.1%, and 6.8% respectively. Despite the growth in sales value, a strong fall in unit sales was registered, caused by the devaluation of the Colombian peso against the US dollar. The price effects are likely to be felt throughout 2016. GfK Temax released the data for the different sectors.
COLOMBIA: TECHNICAL CONSUMER GOODS
SALES VALUE BY CATEGORY
Major domestic appliances
Colombia’s MDA sector rose by 18.1 percent in Q1 2016, compared to Q1 2015. Sales of refrigerators and washing machines grew, as locally manufactured goods replaced the more traditional brands. The most impressive growth was seen in the hobs, hoods and ovens categories.
Small domestic appliances
The SDA sector was Colombia’s best performer in the first quarter 2016 – rising by 24 percent, compared to the same period in 2015. Excellent performances were noted in the vacuum cleaners segment (specifically, the bagless versions), which rose by 42.5 percent, compared to Q1 2015. Consumers seemed happy to pay a higher price and not to compromise quality. Sales of food preparation equipment also improved – up by 42 percent, compared to Q1 2015.
Consumer electronics
The CE sector grew by 6.8 percent in Q1 2016, compared to Q1 2015. In particular, sales of Panel TVs increased by 10.4 percent. This growth was boosted by sales of TVs assembled in Colombia, thanks to their lower prices. Home audio systems declined (down by 14.2 percent), compared to Q1 2015.
Photography
In the first quarter 2016, photography was Colombia’s worst performing sector with a decline of 53.5 percent, compared to the same quarter a year earlier. Because smartphones contain excellent cameras, the market for compact cameras was badly affected as consumers felt that they did not need additional equipment. The single-lens reflex (SLR) segment reported the lowest fall in sales (down by 35.4 percent, compared to Q1 2015), due to the continuing trend of amateur photographers needing good equipment.
Information technology
In Q1 2016, the IT sector declined by 14.5 percent, compared to Q1 2015. Desk computers and notebooks declined with falls of 1.4 percent and 8.1 percent respectively, compared to Q1 2015. These results were driven by sales of cheaper devices, with low-performing processors and basic specifications.
Telecommunications
The TC sector is Colombia’s most consistent one in terms of growth. The sector rose by 22.6 percent in the first quarter 2016, compared to the first quarter of 2015. The growth of SIM-free smartphones was the principal reason for this result. In Q1 2016, 71 percent of smartphones sold were SIM-free, compared to 45 percent in Q1 2015. Mid-range smartphones also sold well, as consumers looked for devices with 4G technology and big screens, at affordable prices.
Office equipment and consumables
The OE sector fell by 0.7 percent (in sales value), compared to the first quarter of 2015. Despite this flat performance, the average price in the sector rose by 25.5 percent, and unit sales fell by 20.9 percent.
