Chinese electronic brands set to take over households
TCL and Midea are well on their way to contribute about 15 per cent of Eros Group total distribution.
From mobiles and TVs, to refrigerators and other home appliances; Chinese brands are giving their competitors a run for their money.
With the consumer durables market in the UAE witnessing an exponential growth over the years, the Dubai Chamber of Commerce and Industry (DCCI) expects the Dubai electronics market size to grow at 4.7 per cent over the next four years and may exceed $3 billion (Dh11 billion) by 2020.
The continued increase in demand can largely be attributed to a rising population and strong household consumption.
Within the consumer durable segment specifically, there has been a growing demand for Chinese products and all the major distributors in the UAE have a Chinese brand under their umbrella. This can be primarily attributed to the shift in consumer preferences and market confidence in China which not only has an inherent advantage due to its lower cost of manufacturing but also because they are focusing on product innovation.
Eros Group, the sole distributor of world-renowned brands, works closely with leading Chinese brands like TCL and Midea to bring in products that meet consumer requirements not only in terms of features but also price. Midea has an extensive range of products that include top of the line refrigerators, air conditioners, kitchen appliances, including cookers, stoves, dishwashers and ovens, as well as washing machines, dryers and vacuum cleaners while TCL is one of the leading TV brand alongside Samsung and LG worldwide.
More recently, CSOT, a subsidiary of Chinese smart product maker TCL Corp announced that the company has started building the country's first production line for flexible display, which would make China a leading supplier of the product often used to make bracelet-shaped mobile phones and folding tablets. The company has started building the 35-billion-yuan ($5 billion) production line in Central China's Wuhan city.
Niranjan Gidwani, CEO, Eros Group, authorised distributors for TCL and Midea, commented: "Over the past decade, we have seen the Chinese consumer durable segment transform phenomenally offering tremendous new opportunities in the UAE. Eros Group, being distributors of two of the top Chinese brands; TCL & Midea, has witnessed a gradual shift in the consumers' perception towards Chinese products, especially amongst the younger target audience. Consumers today, who are more discerning while being cost conscious, are opting for Chinese products not only because of its affordable pricing but also because of their innovative technology and great quality."
"TCL and Midea are well on their way to contribute about 15 per cent of our total distribution and in a span of a five years we have witnessed an increase in the sales of TCL by 300 per cent. Midea has been a recent addition to the Group's portfolio and is receiving good consumer traction. This is a testimony of the shift in consumer preferences towards Chinese quality brands. In the coming future, the company is laying strong emphasis in strengthening the brand mix by seeking only the best Chinese partners in mobile and convergence products to meet the millennial generation's demands and requirements."
On the back of improved sales and flourishing growth of Chinese product consumption in UAE, TCL & Midea are expected to increase market share by 60 per cent collectively by 2020. These brands are on the brink of changing the perception of Chinese products from being low-cost and low-tech to becoming cost-effective, innovation centers within the electronics market hub of China. And by virtue of being sole distributors of TCL and Midea in the UAE, Eros Group is poised to become facilitators of this new wave of change in consumer consumption.