Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: The Colombian consumer electronics devices market is served primarily through imported
devices, and as such the exchange rate has a significant impact on domestic spending trends through shifts
in the affordability of devices. This was evident in 2015 when sharp depreciation resulted in a steep decline
in device spending across all three segments, and with a weaker peso-USD outlook we moderated our
forecast for 2016-2020 in the Q416 update, now envisaging a CAGR of 4.6%.
Latest Updates & Industry Developments
? Computer Hardware Sales: USD1.0bn in 2016 to USD1.1bn in 2020, at a compound annual growth
rate (CAGR) of 3.0% in US dollar terms. Downgraded outlook as evidence of PC substitution for
smartphone spending mounts, eroding the growth potential offered by relatively low PC penetration.
? AV Sales: USD1.3bn in 2016 to USD1.5bn in 2020, a CAGR of 4.1% in US dollar terms. As the
economy strengthens we expect flat-panel upgrades to return the AV market to growth, though the digital
camera market outlook is weak due to smartphone cannibalisation.
? Handset Sales: USD1.9bn in 2016 to USD2.3bn in 2020, a CAGR of 5.7% in US dollar terms. There is
still capacity for sustained smartphone migration momentum due to relatively low penetration, which will
drive market value growth over the medium term.