Although luxury portable consumer electronics saw retail volume and current value declines in 2019, these were minor compared with the massive falls in sales experienced in 2020. In 2019, more than half of sales of luxury portable consumer electronics were attributed to spending by international tourists.
However, other factors also contributed to the significant decline seen in luxury portable consumer electronics in 2020. Due to the emergence of COVID-19 in the country, the government imposed a strict lockdown, during which all non-essential store-based retailers had to close.
Luxury goods represent a very small share of overall sales of portable consumer electronics in South Africa, as they appeal to a limited group of people, namely connoisseurs and those with the discretionary income to purchase such items, given their hefty price tag. Luxury mobile phones remained the sole product category accounting for notable sales within luxury portable consumer electronics in South Africa in 2020, Despite only seeing annual sales of less than 100 units, the high average price tag still generates notable revenue in this category.
Both retail volume and current value sales of luxury portable consumer electronics are expected to rebound in 2021, with growth by both measures. Although COVID-19 restrictions remained in place at the beginning of the year, these are expected to be eased and even lifted during the course of the year as a vaccination programme is rolled out and the number of infections falls.
In the forecast period luxury mobile phones is likely to continue to be dominated by licensed branded products, such as Tonino Lamborghini’s luxury smartphone. However, with fewer than 100 units sold in the category overall, even this brand may choose to pull its offering from the market.
Meanwhile, there are no plans for brands or players to enter luxury wearables over the short-term, as the country continues to grapple with the impact of the pandemic. Due to the low demand for such products, reputable brands and models such as TAG Heuer Connected, Hermès or other fashion brands are unavailable.
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Understand the latest market trends and future growth opportunities for the Luxury Portable Consumer Electronics industry in South Africa 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 Luxury Portable Consumer Electronics industry in South Africa, 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 Luxury Portable Consumer Electronics research and analysis database.
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