Home Audio and Cinema in

Saudi Arabia

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PROSPECTS

Reduced spending power and departure of expatriates lead to increased purchases of second-hand units

The home cinema and speaker systems category saw declines across the board in 2019, with the category as a whole particularly dragged down by the decline of the largest component: LCD TVs. Altered spending priorities among consumers, and selective purchasing behaviour, continue to negatively impact sales of new home audio and cinema devices.

Wireless speakers meet a multitude of consumer requirements

Lacking innovation, digital media player docks and hi-fi systems continue to lose sales, as they represent increasingly outdated technology. Such products are increasingly being replaced by wireless speakers, which can be paired with devices such as smartphones.

Lower consumer spending power and longer replacement cycles may benefit some products

With reduced consumer spending power and the economic environment in Saudi Arabia, players active in the category are expected to implement various marketing strategies to encourage sales. They are likely to opt to market their products at more competitive prices given the high price-sensitivity of consumers, or offer purchase incentives such as free gifts, coupons or discount cards on subsequent purchases.

COMPETITIVE LANDSCAPE

Samsung gains share in both LCD and OLED TVs, LG responds in the latter

United Matbouli Group with the Samsung brand continued to lead the home audio and cinema category in 2019, and consolidated its position with a volume share gain. The Samsung brand gained share in both LCD and OLED TVs in 2019, largely due to the company’s good reputation and the widespread availability of its product range through major retailing platforms, including discounter stores.

Local players unlikely to emerge

There are no notable domestic manufacturers or brands in the home audio and cinema environment in Saudi Arabia. All home audio and cinema products sold in the country are thus imported.

Consumers value price, advice, and free installation

Electronics and appliance specialist retailers represent the primary distribution channel for home audio and cinema products, and indeed gained volume share in 2019. These outlets benefit from a wide range of products available under one roof at competitive prices, coupled with the support of expert advice and product recommendations from store staff.