Smartphones rule retail sales at Gitex Shopper

The first day of Gitex Shopper Spring opened on a positive note as smartphones commanded the spotlight at the bi-annual IT consumer and electronics event, with retailers expecting the segment to account for nearly 50 per cent of total sales at the four-day event that.

Inaugurated by Sheikh Mansour bin Mohammed bin Rashid Al Maktoum, retailers reported good sales even as Dh1 gadget deals, LED TVs to be won every hour and a bundle offers bonanza awaited shoppers.

However, amidst the gadgets and the gimmicks, the brands buzzing through the day were the recent phone launches, including the Samsung Galaxy S5, priced at Gitex from Dh2,599, with some bundle offers to boot, across retailers.

Giving stiff competition were the relatively newer players in the market, including the HTC One M8 and the Lenovo Vibe Z smartphones.

The newly launched Nokia X, which marks the brand;s foray into Android phones, was commanding its own demand with an unbeatable introductory price of Dh439, with bundle offers to boot.

Neelesh Bhatnagar, CEO of Emax, said: “The mood at Gitex Shopper is very positive this season, with Emax hoping to double its sales from last April’s edition.

“However, it is important to note that buyer profile has changed considerably over the last few years, with IT no longer commanding the bulk of sales in the face of smartphones.”

He elaborated: “Today, everyone is investing in a smartphone, with sales targets in the category expected to grow by 50 per cent over last year.

“I wouldn’t be surprised if smartphone sales account for 50 per cent of total sales at Gitex Shopper this year.”

Ashish Panjabi, COO of Jacky’s Electronics, highlighted the key players in the market today, saying: “With major launches happening from Samsung with the Galaxy S5; HTC with the One (m8); Nokia with the Android-based X-series devices; and Lenovo with the new Vibe Z, we expect customers to be spoilt for choice.”

He continued: “From a supply side, we’ve had to work extremely hard with our suppliers to ensure we have enough stocks as we expect to sell more smartphones in the four-day event than in the next two months. HTC, Nokia and Samsung have given us strong assurances that sufficient quantities for their new models will be available.”
 
“Considering the phones mentioned are recent launches, customers won’t expect significant price drops at Gitex, but rather will be able to take advantage of value-based bundle offers,”  he added.

At Jacky’s itself, the Galaxy S5 3G at 2,599 will include three vouchers of miniature glow in the golf worth Dh75 each.

In terms of sales growth, Panjabi agreed that Samsung will continue to be the leader this year, with Lenovo, Nokia and HTC also experiencing growth in the category.

Vishesh Bhatia, CEO of Jumbo Electronics, said Lenovo was emerging as a key player in the smartphones market, saying: “Traditionally, Samsung and Apple have retained market leadership in the category, but Lenovo has increased its presence over the last year by four times, with launches of the Vibe X and the Vibe Z demanding serious buyers in front of traditional established names.”

Meanwhile, laptops and notebooks are the category that remains a strong contender at Gitex Shopper, with Plug-Ins head of operations and e-commerce, Abushaban Omar, explaining why growth in sales of tablets was slowing down in comparison.

He explained: “The line between laptops and tablets sales had diminished considerably with the average sales in the former category dipping 20 to 30 per cent in the last year.

“However, we have noticed that the growth in the tablets segment has plateaued considerably, while laptops are making a comeback, especially at Gitex Shopper, with value added bundle offers and competitive pricing attracting buyers.”
 

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