Case Study - Consumer Electronics Retailer

The problem:

A client approached Avvale Consulting to understand the consumer electronics market in Latin America, including countries such as Argentina, Chile, Brazil and Mexico. Existing producers and retailers of electronic items in the region were identified, and their valuation was highlighted. The client inferred that they wanted to set up a consumer electric company in one of the countries in the region and wanted to have an insight into the competitors in the market. Furthermore, they wanted to know the potential customers and distributors of their products in these areas. 

The Solution:

To help the client better understand the South American markets, we provided them with an insight into the market size of each country they could tap into. For instance, The Argentinian consumer electronics segment reached US$2.062 Billion in 2021 and is projected to grow to US$3.772 Million by 2025. In the Consumer Electronics segment, the number of users is expected to amount to 15.2m by 2025. However, the Mexican consumer electronic market generated US$23 Billion in 2020, which was a substantial increase from the US$12.9 Billion revenue in 2018. Such insights help the client determine the potential of each of the economies and decide where to invest in.

Furthermore, international and national suppliers and retailers in these countries are highlighted for the client. It helps them get an overview of the level of competition in each market, and their valuation gives an idea of the financial returns a firm can earn on average in the market. 

Furthermore, the list of retailers and suppliers in each country’s market gives an idea of the type of products offered by each of them, as shown below:

This information helped the client understand which economy would be more promising for its goods and services. The statistics linked to the market trends and forecasts, several existing suppliers, and their valuation helps the client make informed decisions about which market to invest in. 

We at Avvale suggested the client keep a close eye on the current market trends in the region, as consumption pattern has changed since the pandemic has hit, and decide to enter the market accordingly. 

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