Electronics and Appliance Specialist Retailers in Colombia

2020 IMPACT

Electronics and appliance specialist retailers benefit from non-VAT days

The Colombian Government established days without VAT in 2020 in order to stimulate sales across a wide range of retailing channels. Although there is no official information available on the breakdown of products sold on these days, to avoid congestion, it was requested that appliances and mobile phones could only be sold via e-commerce on the second non-VAT day, suggesting that such products were very popular through store-based retailing during the first day.

Crisis enhances role of digital technology in consumers’ daily lives

Although consumers tightened their belts in the uncertain economic environment caused by the COVID-19 pandemic, they were still willing to spend on electronic devices, opting for devices and brands that were perceived to offer convenience and value for money. Indeed, home seclusion, remote working and distance learning served to strengthen the role of digital technology in consumers’ daily lives.

K-tronix maintains lead

K-tronix from Colombiana de Comercio remained the leading brand in electronics and appliance specialist retailers in value terms in 2020, and was the only player to hold a double-digit share. It has become the most important retailer in this channel thanks to its strong expansion plan, which has included opening outlets in shopping centres, though this made it particularly vulnerable to changes in market conditions during the COVID-19 crisis, with shopping centres hit particularly hard by restrictions on operations and consumer concerns about exposure to the COVID-19 virus in public settings.

RECOVERY AND OPPORTUNITIES

Online developments expected to endure

The COVID-19 crisis has had a marked impact on both the supply and demand sides of electronics and appliance specialist retailing. Store closures and restrictions on operations, including reduced store capacities have led retailers to shift their emphasis towards online activity.

K-tronix in strong position to maintain leadership

While K-tronix saw its value share decline in 2020 as it suffered from the impact of lockdown and consumer concerns about viral infection, particularly on its stores in shopping centres, the brand’s extensive store network places it in a strong position to maintain its leadership during the forecast period. K-tronix’s store network enables it to deliver to most areas of Colombia, allowing it to compete with smaller electronics and appliance specialist retailers in small and mid-sized cities all over the country.

Super Tec set for expansion

The forecast period is expected to see the Olímpica group’s Super Tec store brand begin to make headway in the Colombian electronics and appliance specialist retailers channel. The brand was launched in the market late in 2019, but saw its development abruptly halted by the COVID-19 pandemic.