Luxury Portable Consumer Electronics in the United Arab Emirates

PROSPECTS

Sales continue to fall due to narrow product ranges

Luxury portable consumer electronics current retail value sales continued to decline in 2018, with luxury mobile phones now virtually non-existent. This can mainly be attributed to the unavailability of products from dominant player Vertu since becoming bankrupt in the first half of 2017.

Strong competition from non-luxury portable electronics

Non-luxury portable consumer electronics like single-designer-developed products (mainly from Apple) continue to limit demand for luxury products. These non-luxury portable devices are plated with gold or other precious metals and are encrusted with diamonds or other precious stones.

Shift towards personalisation

Capacity to offer a higher level of personalisation, as well as unique experiences instead of technological advancements, will remain limited in luxury electronic gadgets. It is increasingly difficult to promote the exclusivity of these products as a unique selling point, thus limiting growth.

COMPETITIVE LANDSCAPE

Non-luxury brands partnering with luxury brands

Smartphone penetration remains high in the United Arab Emirates, with sales being dominated by non-luxury brands. International players dominate sales, with consumers spending on well-established global brands like Apple and Samsung when it comes to portable consumer goods.

Innovation key to future success

Over the coming years, new product innovation will be key to success and attracting new customers to this area. Examples of recent innovative launches include TAG Heuer Connected, Apple Hermès iWatch and Tag Heuer connected modular 45.

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