Online Retail Sales in Belgium’s Electrical & Electronics Retail Market: Ken Research
by Ashish Kumar Market ResearcherKen Research announced its
latest publication on, “Electrical
and Electronics Retailing in Belgium-Market Summary & Forecasts;
Comprehensive overview of the market, consumer, and competitive context, with
retail sales value and forecasts to 2020”, offer insights on the changing trends and key issues within the Electrical
& Electronics Retail Market in Belgium.The publication
includes an insightful analysis of changing consumer behavior, changing
economic and demographic factors, technology innovations, leading domestic and international players, distribution channels and
regulatory framework within which the Electrical & Electronics Retail
Market in Belgium operates. The analysis of the
aforementioned trends for major Electrical & Electronics categories:communication
equipment, computer hardware and software, consumer electronics, household
appliances, photographic equipment; for their sales through leading
distribution channels such as Convenience Stores;Electrical & Electronics
specialists;Hypermarkets, supermarkets and hard-discounters; Value, variety
stores and general merchandise retailers; General retailers;Other Specialist
retailers, Value retailers; Online; has been done from 2010 to 2020.
Economic Environment of
Belgium
Belgium is a
federal state with three culturally distinct regions: Flanders,
Wallonia, and Brussels; with substantial economic power allotted to each of the
regions. It is one of the highly industrialized
countries in Europe. Except Luxembourg and Ireland, its economy is
one of the most open economies of the world having strong integration with its
three main neighbour countries: Germany, France, and the Netherlands. Brussels
serving as headquarter of NATO & EU; makes Belgium a prominent member of
EU, and also of OECD and WTO; thereby compensating the small size of the
country by its substantial global position. After having contracted, currently,
Belgium’s economy is recovering reaching 1.3% GDP growth rate both in 2014 and
2015 on account of increased exports and investments in Belgium.
Looking at
the macroeconomic scenario of the country, Belgium is home to 11.2 million
people. With USD 458.651 billion, Belgium’s economy globally ranks twenty-third
as per nominal GDP and with USD 43,629, the global rank is seventeenth as per
GDP per capita. The sector wise contribution to GDP includes approximately 73%
from its strong & huge service sector employing most of its skilled
workforce, followed by industry (25%) and agriculture (2%). Being poor in
natural resources, imports are basically dominated by raw materials and
processed for exports. Exports are dominated by electrical equipment, vehicles,
diamonds, and chemicals and contribute to 80% of the GDP. The country provides
for an open economy with low barriers to overall foreign trade and investment.
Three-fourth of Belgium’s foreign trade is with other EU countries. Foreign
investment in the country amounts to USD 4956.7 million. With low average
unemployment and improving inflationary conditions, the business environment
has become attractive for market players. However, red tapism as a disincentive
to foreign investment, high public debt, uneven economic recovery along with
structural weaknesses such as rigid labor market and high taxation, holds back
the economy from growing at its full potential.
Brief Overview of the Electricals
& Electronics Retail Market in Belgium
Gradually,
the consumer lifestyle has become time-tight urging the need for convenient and
fast electronic appliances. These electrical appliances have become part and
parcel of consumers’ life and are present in various forms. They also play a vital role in the smooth functioning of industries
and hence contribute to the economy. As a result, with improving
macroeconomic environment all over the world and progressive advancement of
technology through investment in R&D, the product base for electronic items
have expanded to meet the surging demands; and this has led to a boom in the
global electronic products market.
Unfortunately,
economic contraction in Belgium has hit the Electrical & Electronics retail
market badly. As a result, the market has witnessed significant slowdown. Belgians
are highly fond of latest gadgets and smart devices. Still economic stagnation
has led to reduced sales growth, especially in the case of premium &
expensive electronics item. However, as the economic recovery has started,
consumer confidence is boosting up. With growing GDP, rising disposable income
& falling unemployment, the market outlook is
optimistic.
Looking in
detail within the Electrical & Electronics retail market in Belgium, the market
holds a nominal share of the overall retail market. In 2015, it held a market
share of 7.7%. Among various electronic items, consumer electronics and
appliances have been the most demanded product.A mix of domestic and
international retailers serves the Electrical & Electronics market demand.Also,
the market is characterized by a high level of price-competition among market
players to achieve maximum market penetration.Electrical and electronics
specialists, accounting for 59.5% of the sales, dominate the distribution
channels.However, with consumers turning to online channel, sales from offline
stores have declined. Currently, online sales account for 23.7% of the total
electrical and electronics sales and is progressively growing. As a result, the
sales volume and value growth of Electrical and Electronics specialists have
been negative.With the market players adopting business strategies such as EMI
options and special occasional discount offers, electronic items are becoming
affordable to every section of the society. This has further increased the
demand and sale of electronic items. Hence, overall a bright and optimistic
Electrical & Electronic retail environment is expected to prevail in coming
years.
Major Players in Belgium’s Electrical
& Electronics Retail Market
Demand in
Belgium’s Electrical & Electronics market is served by a mix of domestic
retailers and international retailers. A very few number of players operate in
the market. Some of the major market players are:Collishop, Media Markt, Cool
blue, Conrad and Redcoon.be.
Among
various chain operators, Media Markt-Saturn is the market leader in value
terms. There is a continuous price war among all the retailers which depresses
their sales value growth. Apart from low pricing, EMI options and special
occasional discount offers are also adopted as a strategy to capture largest
market share.
Belgium’s Electrical & Electronics
Retail Market Prospects
Belgium’s
economic contraction led to declining sales of electronic items and hence a
slowdown in the Electrical & Electronics Retail Market. This slowdown is
expected to continue although with less momentum as the market is expected to
witness increasing demand for electrical &electronic products on account of
economic recovery leading to rising disposable income. The growth in demand is
expected to post a CAGR of 1.56%, amounting to a value of EUR5.8 billion by
2020.Electrical & Electronics specialists will continue to dominate the
distribution landscape. However, the channel will face strong competition from
online channel as more and more consumers are turning to online spending with
increasing m-commerce.Online spending is expected to post a CAGR of 7.48% over
the forecast period, reaching a value of EUR1.8 billion by 2020. As a result of
growing online sales, the sales volume and value growth of Electrical and Electronics
specialists is expected to remain negative over the forecast period.
Overall
the market is expected to expand, although at a slower rate. Some key factors
driving growth in the market include: time-tight schedule of consumers, advance
technology, increasing m-commerce and online spending, steadily growing
economy,improving labour market& inflationary conditions, favourable
demography etc. Maturity of the market and continuous price war among retailers
may pose challenge to this growth.
Key Topics Covered in the Report
·
Detailed profile of the Electrical
& Electronics Retail Market in Belgium
·
Consumer demographics, trends and
behaviours
·
Historic and forecast retail sales
value & growth in Belgium’s Electrical & Electronics Market
·
Key business requirement for operating
in Belgium’s Electrical & Electronics retail market
·
Analysis of impact of Internet &
Technology on Belgium’s Electrical & Electronics Market
·
Competitive landscape of the Belgium’s
Electrical & Electronics market
·
Analysis of key distribution channels
of Belgium’s Electrical & Electronics retail market
·
Regulatory framework applicable to
Belgium’s Electrical & Electronicsretail market
To know more on
coverage, click on the link below:
Related Reports:
Contact:
Ken Research
Ankur Gupta, Head Marketing &
Communications
+91-124-4230204
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