Luxury Portable Consumer Electronics in Russia

PROSPECTS

Smartphones cannibalise luxury mobile phones

Recent years were marked by booming sales of smartphones, including advanced options positioned in the premium segment (such as iPhone versions with gold and diamonds). Russian consumers were attracted by upgraded assortments of such gadgets that offered extra functionality.

Luxury wearables becomes the only category with potential

Luxury wearables started from a low base only a few years ago, when the first brands were introduced. However, these products gained immediate popularity among Russian consumers, especially young people following active and sporty lifestyles.

Innovations a driving force

Consumer electronics, including the luxury segment, is much dependent on the speed of innovation and new technologies Inc into portable devices to make them multifunctional and convenient to use. Companies able to offer consumers unique experiences, including through quality of sound, photos and menu convenience, were not only highly competitive themselves, but also drove the category overall.

COMPETITIVE LANDSCAPE

Vertu’s exit opens category to smartphone leaders

After Vertu Corp Ltd left the category in 2017, there were no other significant players in luxury mobile phones. This led to total cannibalisation of the category by leading smartphone brands such as iPhone and Samsung.

New players have the potential to stir up the category with breakthrough innovations

While luxury portable consumer electronics faces strong pressure from mass-market consumer electronics brands overall, there still exist good prospects for new players. The consumer base is expected to expand to include the new generation of young people seeking added-value products and a personalised approach to servicing and tailoring luxury products.

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