Electronics and Appliance Specialist Retailers in Colombia

PROSPECTS

Replacement as a strategy to encourage consumption

Since electronics and appliance specialist retailers sell durable products of low rotation, the strategy for encouraging greater consumption by means of replacement has been gaining force. Strategies such as Entrégala y Ahorra (Bring it and Save) which gave a boost to the campaign to replace refrigerators older than 10 years, in an incentive to reduce energy consumption, seem appropriate and responsible to encourage higher consumption.

Reforms that promote business and give confidence to consumers

By the end of the review period, the new government will finish structuring tax reforms, which are expected to benefit electronics and appliance specialist retailers; the announcements by the Ministry of Finance have resulted in players predicting that they will promote the commercialisation of durable goods so that consumers have greater access to them, either by means of a conversion or a new acquisition. However, this is connected to increasing consumer confidence, which in the medium term will show no signs of being reversed.

Technological innovations to ease consumers’ lives

Although this is not a new concept in developed countries, the entry of appliances that include the technology of Internet of Things (IoT) is beginning to strongly emerge in Colombia. Refrigerators with touch screens that allow multiple tasks through internet connection, along with other devices, are renovating the shelves of electronics and appliance specialist retailers, presenting consumers with new product categories so they may benefit from connected homes.

COMPETITIVE LANDSCAPE

Complex years that hope to regain consumer confidence

The deterioration of consumer confidence in the Colombian economy is a reality that electronics and appliance specialist retailers must face. Regardless of their size, the sensitivity of this variable has resulted in the sale of products through this channel to shrink or expand.

Tax blows and confusion place pressure on purchasing decisions

Products sold by electronics and appliance specialist retailers must have certainty. The confusion created after the tax reform on the reduction of taxes to certain appliances for low-income households has led consumers to stop making purchases and some retailers to increase their prices, with both hoping to take advantage of future discounts.

Expansion targets the country´s regions

The four main Colombian cities appear to have reached a point of saturation for electronics and appliance specialist retailers. Therefore, without ruling out new openings, the outlook aims to captivate consumers, who require technological devices and appliances, with offers of products in intermediate cities.

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