26 October 2008
Prices of imports into the UAE from Asian countries, especially South Korea, are expected to fall on the back of depreciating Asian currencies and ease the inflationary pressure in the country, said importers.
Leading Korean firms, such as LG, Samsung, Hyundai and Daewoo, are keeping their fingers crossed while the Korean won continues its slide against the American greenback. The global financial crisis has prompted many offshore funds to sell their Korean stocks, putting considerable pressure on the won.
The result of the won losing value will be cheaper prices for Korean goods in the world market, making them more competitive and improving their sales.
Ashraf FawaKherj, Sales and Marketing Manager, Samsung Electronics, said the market expects at least a 10 per cent fall in the prices of Samsung mobile phones in the UAE solely as a result of the won's slide.
"The latest Samsung handset model, which costs Dh3,699 now, can go down by Dh400 per piece to around Dh3,300. Samsung and other Korean firms are closely watching the currency movements before announcing new prices."
Samsung, LG, Hyundai and Daewoo are major players in the Gulf market for products ranging from LCD TVs and monitors, domestic appliances, computers, mobile phones and telecom equipment to heavy machinery and automobiles.
Korean companies are also major players in the trucks and construction machinery used in the UAE's construction sector.
Korean automobile firms such as Hyundai Motor Corporation are mulling the reduction of prices in the Middle East due to the steep depreciation of the won.
Hem Merchant, Assistant Manager of Sharaf Electronics LLC, a leading electronics dealer in the UAE, said the currency movement may affect prices at the manufacturing level and if prices of goods made by LG or Samsung come down, it will affect prices of other competing products, too, the main beneficiary being the end users.
"The market is fiercely competitive and if one set of manufacturers lower their prices, the others will have to follow suit sooner than later," Merchant said.
Peter Takvorian, Marketing Manager of Echo Dubai, a wholesale computer dealer, said: "Korean brands may gain from the currency depreciation customers are loyal to the Japanese and American brands. However, the price gap between branded and non-branded products is coming down."
Prices of imports into the UAE from Asian countries, especially South Korea, are expected to fall on the back of depreciating Asian currencies and ease the inflationary pressure in the country, said importers.
Leading Korean firms, such as LG, Samsung, Hyundai and Daewoo, are keeping their fingers crossed while the Korean won continues its slide against the American greenback. The global financial crisis has prompted many offshore funds to sell their Korean stocks, putting considerable pressure on the won.
The result of the won losing value will be cheaper prices for Korean goods in the world market, making them more competitive and improving their sales.
Ashraf FawaKherj, Sales and Marketing Manager, Samsung Electronics, said the market expects at least a 10 per cent fall in the prices of Samsung mobile phones in the UAE solely as a result of the won's slide.
"The latest Samsung handset model, which costs Dh3,699 now, can go down by Dh400 per piece to around Dh3,300. Samsung and other Korean firms are closely watching the currency movements before announcing new prices."
Samsung, LG, Hyundai and Daewoo are major players in the Gulf market for products ranging from LCD TVs and monitors, domestic appliances, computers, mobile phones and telecom equipment to heavy machinery and automobiles.
Korean companies are also major players in the trucks and construction machinery used in the UAE's construction sector.
Korean automobile firms such as Hyundai Motor Corporation are mulling the reduction of prices in the Middle East due to the steep depreciation of the won.
Hem Merchant, Assistant Manager of Sharaf Electronics LLC, a leading electronics dealer in the UAE, said the currency movement may affect prices at the manufacturing level and if prices of goods made by LG or Samsung come down, it will affect prices of other competing products, too, the main beneficiary being the end users.
"The market is fiercely competitive and if one set of manufacturers lower their prices, the others will have to follow suit sooner than later," Merchant said.
Peter Takvorian, Marketing Manager of Echo Dubai, a wholesale computer dealer, said: "Korean brands may gain from the currency depreciation customers are loyal to the Japanese and American brands. However, the price gap between branded and non-branded products is coming down."
By VM Satish
© Emirates Business 24/7 2008
