Electronics and Appliance Specialist Retailers in Colombia

PROSPECTS

Product displays attract consumers into stores and demonstrate new technology

Electronics and appliance specialist retailers continued to see current value growth in 2019, although this was lower than the rates seen at the beginning of the review period. Such outlets are increasingly acting as “confidence centres”, where consumers can touch and feel the products before purchase.

E-commerce increases due to services and reviews

Sales of electronics and appliances via e-commerce are seeing strong growth in Colombia, enhanced by added-value services such as free delivery, online tracking, immediate guarantee honouring, and attractive rebates and promotions. Consumers value being able to compare products and prices online.

Encouraging consumption through more frequent replacement and credit

Since electronics and appliance specialist retailers sell durable products which have a long life, the strategy for encouraging greater consumption by means of more frequent replacement has been gaining force. For instance, the strategy Entrégala y Ahorra (Bring it and Save) gave a boost to the campaign to replace refrigerators older than 10 years as a way to reduce energy consumption, encouraging more frequent replacement.

COMPETITIVE LANDSCAPE

K-tronix extends its lead thanks to a new outlet and customer experiences

K-tronix from Colombiana de Comercio remained the leading brand in electronics and appliance specialist retailers in value terms in 2019, 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 includes opening outlets in shopping centres.

Local independent retailers lag behind

Despite maintaining their advantage of achieving a closer relationship with customers, national independent electronics and appliance specialist retailers are facing challenges to their survival. Traditional brands such as Rayco had difficulties adapting to the new marketing models seen from major modern retailers, which support their operations with aggressive promotions, including store cards which offer attractive discounts.

Expansion in the regions to maintain growth

The four main Colombian cities appear to have reached saturation point for electronics and appliance specialist retailers. Therefore, without ruling out new openings, in the forecast period players will aim to attract consumers who require technological devices and appliances in intermediate cities.

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