Indonesia and Malaysia Driving Electrical Goods Sales in Southeast Asia
Published on: 22nd Nov 2011
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The Technical Consumer Goods industry achieved value growths between 7 and 30 percent in four of five major Southeast Asian markets in the third quarter of 2011 over the same period last year. According to the market research company GfK, all the region's developing countries of Malaysia, Thailand, Vietnam and Indonesia reported robust performances.
Similar to results from last quarter, Indonesia and Malaysia continued to be the top two growth engines in the region except they have swapped places this quarter with Malaysia now being the reigning market with the highest growth of 30 percent, while Indonesia trailed behind by 3 percent. Malaysia and Thailand are the only two markets where all technical consumer goods sectors reported gains. Growth in Thailand and Vietnam inched up slightly compared to the previous quarter's results, at 14 and 7 percent respectively.
"The considerable gains attained by Telecommunications, on top of the vastly improved performance of the Small Domestic Appliances drove Malaysia to the top position," noted Mr. Stanley Kee, Regional Commercial Director for GfK Asia. "The general healthy showing of the entire industry is attributable to the festivities take took place during the third quarter such as Hari Raya and Merdeka, which spurred consumer buying. It is interesting to note also that the SDA segment in Malaysia was in the red during the last two quarters but managed to rebound substantially in the latest quarter to hit a growth level of 21 percent."
Findings from quarter three TEMAX reports revealed that Telecommunications and SDA are the only two sectors where upward growth trending is reflected in all markets. Across the board, SDA in Thailand achieved a record high 60 percent growth in quarter three. "The flooding situation in the central part of Thailand has helped improved sales of various essential appliances such as rice cookers and hair dryers to help residents tide over the challenging conditions," highlighted Mr. Kee.
In Telecommunications, consumer demands for smartphones continue to fly high, especially in the developing markets of Indonesia and Malaysia where it grew as much as 48 and 52 percent respectively.
"The smartphone segment is anticipated to continue expanding and developing, with more model options, better operating systems, and quicker processors," said Mr. Kee. "At the same time, their increasing affordability is encouraging more consumers to jump onto the smartphone bandwagon. We can anticipate the Telecommunications sector to continue being the driving force of the Technical Consumer Markets for many more years to come," he concluded.