Chinese electronics brands are rapidly gaining ground in SA’s consumer tech and durables market, expanding from smartphones and televisions into home appliances.
Their success, according to NielsenIQ’s (NIQ) recent consumer tech industry trends report, is driving strong price competition and reshaping the market.
NIQ forecasts global T&D sales to reach $1.29-trillion (R23-trillion) in 2025, with the Middle East and Africa region expected to contribute $68bn, up about 2%. Local growth is expected to be driven by volume-based demand and cautious, value-conscious spending as consumers delay major upgrades and replacements.
“Two dynamics are driving price pressures in the South African T&D market in 2025. On the one hand, disruptive Chinese brands are rapidly moving into the country with attractive products spanning entry level, mid-range and premium price points,” NIQ SA MD Zak Haeri said.
“On the other, consumer behaviour is shifting as South Africans continue to adopt a purpose-driven approach to spending that prioritises value. ‘Value’ includes durability, quality, and convenience, as well as personalisation, rich features and affordability.”
According to the report, Chinese brands have captured market share in smartphones and TVs by offering more features and better specifications at lower prices globally. Their growing popularity is spilling over into home appliances, creating a brand halo effect. This trend is expected to accelerate as Chinese manufacturers redirect stock from the US, where tariff-related sales declines have left excess inventory.
Consumer demand in SA is increasingly driven by perceived value, which includes not only affordability, but also product durability, quality, convenience, and features. “Consumers need to be convinced of value for money before they upgrade or replace products,” Haeri said.
Many households are holding on to devices including smartphones, TVs and appliances for longer periods, waiting for stronger reasons to upgrade.
In the smartphone category, the prepaid segment is showing growth boosted by operator incentives and lower-cost offerings. In contrast NIQ found that postpaid contracts are under pressure, particularly in the premium segment, as consumers delay upgrades and adopt more conservative spending habits. This is contributing to inconsistent performance in postpaid sales outside flagship device launches.
In the smartwatch market, demand is declining overall, especially in the R8,000-R12,000 mid-tier segment. However, entry-level models are gaining traction as price-sensitive consumers seek affordable alternatives. While promotional campaigns continue to deliver short-term boosts, they have not translated into long-term category stability, NIQ said.
The panel television segment is also contracting, with soft performance in large screen sizes and QLED models. Despite the slowdown, NIQ said demand remains steady in specific size ranges, particularly 50 to 60 inches. Meanwhile, increased competition from new entrants, mainly Chinese brands, is adding further pressure.
Gaming monitors are one of the few bright spots, with strong growth driven by increased use as multifunctional devices, including as TV replacements. Screens under 27 inches contributed 80% of sales value in the first quarter, with consumers trading up around the R3,000 average price point. Features such as health tracking and integration into digital ecosystems are supporting long-term interest, according to the NIQ.
The researcher said the cooling appliance category is gaining momentum, driven by mass-market demand and price competitiveness. Two-door bottom freezers are leading in unit sales, while multi-door and French-door models are driving value growth.
In the washing machine category, the mid-tier price range of R6,000-R9,000 is seeing rapid expansion. Front-loaders dominate the market in value terms, while top-loaders lead in volume. Brands in the middle are being squeezed as both premium and budget players grow their share.
Promotions and retail events remain critical to driving sales. NIQ reports that globally, a third of all tech sales in 2024 took place during just seven major promotional periods. Locally, events such as Black Friday, back to school, winter sales and Christmas continue to anchor the tech and durables sales calendar.
“Brands selling into SA must answer the dual challenge of a cautious, price-sensitive consumer profile and a congested retailer landscape. To grow this year and beyond, manufacturers and retailers must lead with value and innovation that resonates with today’s purpose-driven consumers,” Haeri said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.