Analysts predict growth in Chinese consumer electronics market

by: Ezra Marbach

How do they explain 8% growth every year through 2008?

The People's Daily cites a number of contributing factors:

  • The new generation of young consumers has both disposable income and a thirst for new technology.
  • With an increasing number of homes enjoying computers and Internet access, there is expected to be greater demand for digital
    products, including new-generation videodisk players, digital cameras,
    digital camcorders and MP3 players.
  • As the economy continues to grow, so will consumer purchasing power. With higher incomes, easier access to credit, and a government incentive program for private home ownership, demand for household products will undoubtedly increase. And with that, analysts predict, a rise in demand for home theaters systems.
  • As Chinese car buyers become increasingly fond of more expensive
    models, their appetite for in-car audio products will increase. Foreign brands' prestige, image, product and technology innovations are expected to lead to greater spending on consumer electronics.
  • According to a blueprint of the State Administration of Radio, Film and Television, commercial DTV broadcasting will be launched in major cities in 2005. By 2010, digital TVs are expected to have replaced analog TVs in most homes.

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