Retail volume sales of the dominant LCD TVs recorded slower growth for most of 2020 compared to 2019 due to consumers economising during lockdown in Q2 but demand remained notable earlier in the year as consumers continued to invest in home entertainment as they were forced to remain at home for several months. The rising trend of streaming content through online platforms such as Netflix (which offers highly affordable and competitive subscription fees) and Shahid experienced a surge in demand, particularly between March and April 2020 during the initial stages of lockdown, as consumers looked to television as their main source of entertainment.
Previously, Samsung Corp was the leading player within home Egypt with its $270 million TV factory in Beni Suef, which exports almost 80% of its production to The Middle East and Africa. Overall, Samsung relies on its reputation, local factory and its aftersales service, however, it seems that these factors have not been enough to maintain the players lead as in 2021, Samsung will rank in second place.
Electronics and appliance specialist retailers were already losing its dominance as a distribution channel for home video in Egypt towards the end of the review period, as hypermarkets had continued to offer increasing competition through the offer of affordable brands in their large outlets, enabling local consumers to browse the consumer electronics sections of these retailers during their grocery shopping. Nevertheless, both channels lost ground during lockdown to the dynamic e-commerce, which more than doubled its retail volume share in Q2 2020 compared to 2019 as consumers headed online to take advantage of competitive deals and home delivery.
Currently, LG dominates OLED TVs, but it is expected that new players will tap into this segment, leading to stronger competition and more affordable pricing over the forecast period. For example, El Araby Group will continue to gain retail volume share within OLED TVs with its brands TCL, Tornado and Sharp which are manufactured locally.
Ongoing declines in the average unit price could support increasing demand for LCD TVs from 2022, a trend supported by rising competition from local production by the likes of El Araby Group, which attracts a wider audience through more affordable prices. International brands are keen to manufacture locally to match this increasingly challenging environment and to benefit from the low wages in Egypt with plans to make Egypt an export hub to Africa and the Middle East.
After smartphones, home video, driven by LCD TVs, will remain the most popular product for Egyptian consumer electronics over the forecast period. Television will remain an important form of entertainment for many Egyptians, especially as price sensitivity and caution over the virus remaining in circulation over the early part of the forecast period at least, will reduce the opportunity to go out and socialise with friends, or to visit the cinema.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Home Video industry in Egypt with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Home Video industry in Egypt, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Home Video research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page