Electronic article surveillance market growth in Southeast Asia is tied to retail markets in those emerging countries, but the EAS market is expected to produce a compound annual growth rate of 16.6 percent until 2016, says a report by Frost & Sullivan, a market research and consulting firm.
Frost & Sullivan’s report—Analysis of the Electronic Article Surveillance Market in Southeast Asia—says increasing customer purchasing power and the positioning of countries such as Malaysia, Singapore and Thailand as shopping hubs bolsters the growth of retail markets. That will increase the demand for EAS equipment.
“Retailers in SEA realize that implementing EAS systems in stores can effectively reduce shrinkage and theft, thus improving profitability,” said Susan Sahayan, Frost & Sullivan Research analyst. “Theft prevention becomes crucial since retail margins are low and retailers will have to sell several of the same product type to cover the loss of one stolen item,” she said.
The availability of cost-effective solutions also encourages EAS adoption, according to the report. EAS companies now offer mid-range and economy-range product lines and products that provide more functionalities are gaining in popularity, the report says. The convergence of EAS systems with video surveillance technologies is also gaining widespread retailer interest.
However, the lower costs of manned security in emerging countries such as Vietnam, Indonesia and the Philippines curb investments in EAS systems and cheap, low-quality solutions flooding the SEA market can also impede growth.
Therefore, sophisticated products that improve users’ operational efficiency and consumers’ shopping experience are essential, according to Sahayan. “Market participants are striving to offer better customer value through fully integrated EAS solutions,” she said. “Smart features such as accurate data analysis capabilities in sales reports, smart alarm management, reliable deactivation, reduced energy consumption, and scalability for future upgrades will spur adoption of EAS systems in the region.”
Click here for information on the report.