Second-hand TV sales are huge and growing faster than first-hand in UAE



If you are planning to buy a TV this is the best time to go because it is a buyer's market.

While Gitex Shopper is taking place, other online retailers like Noon.com are also offering the Big Yellow Sale, LuLus Digitech and Amazon's Tech Bazaar.

Isam Arshad, Research Analyst at Euromonitor International, said the UAE TV market is not growing this year.

Even after prices for OLED TVs have dropped, he said that it is still expensive.

"With many expats leaving and returning, they sell their TVs online. So the used TV market is huge and growing faster than the second-hand TV market, and people can buy it for almost half the price of certain models, "he said.

Deepak Babani, Eros Group Deputy Chairman of the Board, said there are several reasons for the decline in TV demand.

"Most people use cell phones to watch TV content. People who buy multiple televisions for their home are shrinking. Replacement needs are limited as long as you have a 4K TV. The price difference is higher and the image quality negligible, "he said.

South Korean TV maker LG was off the market this year and Babani said the effects were not felt at all.

"Demand is very restrained and people are ready to take any available brand. The price declines are serious as Chinese exports of television screens to the US have declined, leading to overproduction of screens, "he said.

Pankaj Kumar, head of omnichannel retail at Jumbo Electronics, said televisions are in a better position than last year. Last year, he said, the decline in value was double digits, but single digits this year.

Wearables are the fastest growing category

Next up is the question of which segment will grow among consumer electronics this year.

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According to Arshad, smartwatches are the only category that is growing fastest this year, followed by smartphones.

Smartwatches, including smartbands, are growing for health and wellness reasons, powered by Apple. It is expected that the value will increase by 10% this year.

According to research firm International Data Corporation, the five leading companies – Xiaomi, Apple, Huawei, Fitbit and Samsung – continued to drive new product launches and advertising campaigns in the second quarter, capturing 65.7% of the market, representing nearly 12 companies Point gain from last year.

The overall market rose by 28.8% to 34.2 million in the second quarter compared to 26.6 million in the previous year.

However, Arshad said mature products like laptops, digital cameras and LCD televisions will benefit from manufacturers' push for premium features and technological improvements. The category with the largest loss of value are the imaging devices with 13%, followed by laptops with 5% and LCD TV with 2%.

"Televisions and laptops will not disappear so quickly because the relatively high prices of the products help companies keep their profit margins and revenues, even though they sell fewer devices than portable consumer electronics," he said.

Online commerce is picking up speed

For the year 2019, a total consumer electronics market of AED 14 billion compared to AED 13.4 billion in the previous year is expected. It is expected that online retail will be worth AED 150 million.

"Yes, e-commerce is the fastest-growing consumer electronics retail channel for the period 2018-19 GR, at 12%. Internet retailing will account for 23% of total retail consumer electronics by 2024, "he said.

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In addition, online growth is double-digit and the UAE market is more dependent on online sales than in-store sales.

"If the Internet does not work for a day, online retailers will lose millions. That's the state of the market. People even buy food online. Going to a mall or shop to buy consumer electronics is a painful and stressful routine.

"Online shopping makes it easy and consumers have great confidence in online shopping due to their excellent service. Online retailers can take the product back without further questions, even if you have already used it. Just go online and click on "Back". They will come to your home or office and take the product, "he said.

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