The consumer electronics boom

Kenya: Last year during the FIFA World Cup, this writer was invited to watch a match in a suburb along Ngong Road. In the midst of food and drinks, I could not help admiring the massive wall-to-wall TV set that had just hit the market. It was a reflection of the host; a trendy, urbane hardworking lady in her mid-20s whose house reflected her status and lifestyle.

Her ambitions, aspirations and living standards, like many urbanites, have not gone unnoticed by manufacturers and suppliers of electronic household goods.

According to the Director Consumer Electronics Division at Samsung East and Central Africa, Allan Oyier, these companies are in an ‘arms race’ with each other to ensure the living standards of people in the property boom are complemented by trendy, top of the range, smooth and functional electronic gadgets and machines.

“As Samsung, part of our popularity and enviable market share is down to our ability to sell electronic appliances that suit the customer,” he says, with Samsung boasting of 50, 43 and 40 per cent market share in TV, refrigerators and washing machine sales respectively.

“Part of the trend we have noticed is the popularity of electronic appliances that fit the space. Consumers want things that will complement their living spaces and whether they live in bungalows or less spacious flats, the electronics they buy must fit their living space.”

Customers want items that say a lot about themselves and the manufacturers are following that lead. The discerning customer is changing the landscape in real estate space by space. From flats screens to curve TVs, walk-in to waist-height refrigerators, consumer goods companies are busy stocking our houses.

Promotions and after-sale service are the order of the day, as more Kenyans buy into trends. The bulging middle-class, with a disposable income and a penchant for good living, is driving this trend.

 Changing trend

“The same way people are looking into finer details like petite finishing when it comes to the houses they live in, is the way they are looking at electronics. For example, the Soundbar is becoming very popular because it has reduced the number of wires that run around a house,” says Oyier, of the latest wireless electronic gadget.

According to an African Business Magazine feature that ran on March 20, 2012, the growth of electronic consumer goods on the continent is a direct reflection of the social-economic revolution taking place.

To estimate, consumers numbered one billion by 2010 but the figure is expected to rise to 1.5 billion by 2030. Consumer spending stood at $600 billion (Sh56.4 trillion) in 2012 but will hit $1 trillion (Sh94 trillion) by 2020, five years from now.

The untapped African market has been noticed by manufacturers of electronic goods, with stable governments forcing many companies to look at Africa with interest. Nearly every electronics giant has an office in Kenya besides being available in every supermarket, with some investing in service centres around the country.

“The urban dweller is a very discerning individual who loves modern electronics which complement their lifestyle,” says Abdirashid Hussain, managing director at Kenya Online Trade and E-Commerce.

“Many people in town also like efficiency and that is why online shopping is becoming more popular in Kenya. Most of the manufacturers have acknowledged that and that is why we supplement these big name stores,”  he adds.

His sentiments are echoed by David Mwawasi, project manager at online platform PigiaMe: “Sales have been going up on trendy home appliances, more so those that have been used,” said Mwawasi.

“On online platforms, new appliances fluctuate, but used trendy and edgy items are popular.” The demand for these electronics is also reliant on Government policy. PigiaMe experienced a surge in digital television sales when the digital migration was in full swing. A few months back, refrigerators were the most searched home appliances, and the trends keep changing.

 Decor

According to Abdirashid, the property boom goes in tandem with home décor and showiness.

“There has been increased demand for more features in electronics from customers than there previously was. There has been advancement everywhere; even the houses that are built now are fresh to fit a demanding market. Same applies to household electronics,” he adds.

“We are so keen in the property market and we are always improving our infrastructure to remain in tandem with the requirements,” says Oyier. “Apart from getting deals for furnished apartments, we are constantly engaging with architects and building consultants on the products we have to ensure compatibility with the plans they have.”

The race has also seen the invasion of counterfeit electronics, with most coming from the East. Cheaper and affordable to some, most do not last long and to established manufacturers, there is no cause of panic.

“Samsung is not too concerned with the infiltration of goods from the East because our customers know the value of electronics they are looking for,” says Oyier.