Arrival of 5G in Brazil cheers up electronics retailers

posted on 07/17/2022 06:00

Homes connected through 5G technology should be trending – (credit: EVARISTO SA)

The arrival of 5G in Brazil gave a boost to the electronics and home appliances retail sector, which represents 2.5% of Industrial GDP. The segment showed a 24% retraction in sales in the first five months of 2022 compared to the same period last year. According to data compiled by the National Association of National Manufacturers of Electronics and Home Appliances (Eletros), the expectation is for partial recovery of results in the second half, driven by the arrival of new technology, which should bring greater added value to products.

“The government said that by the end of this year it will be able to reach all capitals. If by the middle of next year we have at least 40% of our 5G internet coverage in these capitals, we will have a significant gain in the sector, which is the precursor spring” , declared the executive president of Eletros, Jorge Nascimento, during the Eletrolar Show All Connected, the largest business fair between industry and retail in Latin America, which took place this week in São Paulo.

In addition to a race to exchange cell phones covered by the signal, the arrival of the network should expand the use of artificial intelligence (AI) and the internet of things (IoT), that is, interconnected products. “The industry has a very significant number of launches and advances in technology will provide a new experience in segments of the area of ​​air conditioning, cell phones, televisions, the gamer market, in addition to the area of ​​urban mobility”, said Carlos Clur, CEO of Electrolar Group. The gaming sector alone handled more than R$ 2 billion in Brazil in 2021 and the forecast for this year remains promising, with an expectation of growth of 7.2%.

Despite the challenging macroeconomic scenario, characterized by high inflation, high interest rates, exchange rate variation and high production costs, with the cooling of the pandemic, the retail sector began to dispute part of the income of families with the service sector. “In the pandemic, despite a chaotic period recorded in the first months, not only did we recover sales but also recorded surprising results. The isolation made the consumer invest in home improvements. Today, with the health crisis under control, there is an expectation of improvement in purchasing power”, evaluated the executive president of Eletros.

Overall, retail sales are expected to increase by 3.8% this year, according to a report from EMIS, the digital platform of the ISI Emerging Markets Group. The sector is confident of a moderate recovery of results in the second half of the year, a period that concentrates the seasonality of sales on important dates for the segment, such as Black Friday and Christmas. The World Cup, according to representatives of the sector, should also become a boost in sales of some products, especially televisions.

smart home

Controlling devices remotely through applications or with virtual assistants, which respond to voice commands, is an increasingly present reality in Brazilian homes. Smart locks, robot vacuum cleaners and smart pet feeders were some of the novelties presented during the 2022 edition of the Eletrolar Show. Offering comfort, practicality, economy and efficiency is a trend that has gained the attention of Brazilians with connected homes, a segment that will be boosted by the arrival of 5G.

According to the product manager at Geonav, Sérgio Miranda, the low latency of the response time of a command will be the great differential of the technology for the greater automation of the environments. “The 5G revolution starts with the cell phone, but it allows you to program your home so that things happen without you having to do anything. In addition, it guarantees more sustainability, you can, for example, control your energy use. And another point is accessibility, having these devices at home can make life a lot easier for a person with a physical disability, with the option of voice command”, he said.

A technology lover, social media manager Luciano Borges, 26, has been using Alexa, a virtual assistant developed by Amazon, for over a year. This year he also decided to invest in a digital lock and is already financially planning to change, little by little, the other electronics in his home. “It’s revolutionary, especially if you have the house interconnected with all the accessories with the same technology. My desire is to automate all the rooms, from the entrance to the gate to the bathrooms, but the finances don’t help”, he said.

There is still the false idea that residential autonomy is expensive and unrealistic, but it is currently possible to find smart products on the market for all types of pockets. According to José Ricardo Tobias, leader of Positivo Casa Inteligente, the first solution platform in the Brazilian market, it is possible to observe a gradual change in the profile of adhesion to the devices, which undergo a journey of democratization.

“In the first two years of the brand, it was very concentrated on consumers of classes A and B. We see in our research a gradual entry of class C consumers. The natural way is for the category to be increasingly democratic with the flattening of the price curve”, declared Tobias.

pri-1707-appliances home appliances PIB

pri-1707-appliances home appliances PIB
(photo: Valdo Virgo)