The results of the GfK TEMAX ® Romania report for the second quarter of 2009
The durable goods market in Romania decreased by 40.4% in the first half of the year compared to the first six months of 2008, to a total of 664 million euros .
The total electrical goods market monitored by GfK TEMAX was 308 million euros in the second quarter of this year, a sharp decrease of 46.8% compared to the same period in 2008. The market reached a value of 664 million euros in the first six months of 2009, i.e. a decrease in economic activity of 40.4%.
The evolution of sales of durable goods in Romania
Source: GfK TEMAX ® Romania, GfK Retail and Technology Division
The small appliances and telecommunications sectors fell by 22.1% and 25.8% in the first half of the year. Sales of large appliances had a better quarter compared to the start of the year, but results for the current year show a 37.1% decline. And durable electronics registered a decline of 42.6%, closely followed by the photo sector with a negative growth of 43.2% for the first 6 months. The IT and office equipment sectors were the worst performers as they fell sharply by 47.2% and 51.4% respectively.
Small appliances
Small household appliances continued their negative growth rate of 27.6% in Q2-2009, compared to the same quarter last year, reaching 16 million euros. The negative performance of the sector is fueled by weak demand for almost all major product categories. The products that suffered the most are shavers and epilators, vacuum cleaners and appliances for food preparation, which represent approximately 75% of the total value. Within the segment of food preparation appliances, food processors and hand blenders are the products that registered a significant decrease, dragging down the entire category . On the other hand, product groups with relatively low average prices compared to other small household appliances, such as fryers, benefited from a positive evolution.
The negative trend reflects a sharp decrease in people’s purchasing power, caused by the decrease in income and reduced financial resources. Also, the depreciation of the local currency influenced the value evolution of this market.
„Another reason for the weak demand could be the large number of Romanians whose mentality regarding saving money is based on the belief that the appliance should be used until it wears out, without being replaced by another that uses better technology or that has innovative technical features”, declares Ciprian Hatneanu, Retail & Technology Director GfK Romania.
Telecom: Smart phones balance the negative effect on demand
In the second quarter of 2009, the telecom market decreased by 24.8% compared to the second quarter of 2008. The decline in mobile and smart phone sales remained relatively stable in the first half of the year. Also, the decrease in the price of smart phones has made them more convenient and thus offers the possibility of being chosen instead of the classic phone.
Large household appliances: the buy-back program slowed the negative growth
In the second half of the year, the market of large household appliances reached a value of 79 million euros, following the negative pattern shown in this quarter by all goods monitored within GfK TEMAX.
The impact of the buy-back campaign for large appliances triggered a slight increase, especially for the refrigerator and freezer category, comparing sales this quarter with those of the previous quarter. However, this did not save the entire sector from the 38% decline compared to the same quarter last year. Even if the negative trend is starting to ease in the case of built-in appliances, the economic slowdown is still having a major impact on consumer demand for large appliances.
Consumer Electronics: Sales Halfway to Q2 2008
In the second quarter of 2009, sales of durable electronic products dropped sharply, by approximately 50%, reaching a total of 52 million euros. The downward trend peaked in June, with significant sales declines for the main component of the consumer electronics market – LCD TVs and plasmas.
„If in the same month of the previous year the sales of flat screen TVs were boosted by specific events, such as the European Football Championship, this year the slowdown in economic activity had a strong impact on consumer demand. The recent campaigns took place in the 2nd quarter -2009 for specific electronic products, and the buy-back program failed to drive better sales performance compared to last year.It is worth noting that, apart from LCD TVs and video game consoles, all products electronics monitored within Temax reached in the 2nd quarter less than half of the volumes they reached in the same period of the previous year”, adds Ciprian Hatneanu.
Photo: negative development
The photo market also recorded negative figures. With a sharp decrease, of approximately 44% compared to the corresponding quarter of the previous year, this sector reached a total figure of 9 million euros. However, marking the seasonal development for digital cameras, the sales situation is 2 million euros higher than in quarter 1-2009.
SLR cameras are undeniably more attractive to consumers now – compared to last year – but the price depreciation has caused a negative development in terms of value for this segment. In contrast to these, compact cameras show, for quarter 2-2009, a stagnation in terms of price – most visible in the local currency.
IT: monitors and desktops in sharp decline
The IT sector in Romania had a sharp decrease of 59.2% in the second quarter of the year, compared to the same quarter last year, reaching the value of 87 million euros. This fact was caused by an important decrease in volume and, in part, by the decrease in the average price, especially for laptops, taking into account the fact that the share of netbooks within laptops has increased and that their price is significant smaller than that of traditional notebooks.
The most affected by the crisis were desktop computers and monitors .
Office equipment: The sector most affected by the overall decline
The office equipment sector continued to register a sharp decrease (58.5%) in the second quarter of the year compared to the same period of 2008, reaching a value of €10 million.
Printers and MFPs showed a downward trend in sales caused by the low level of consumer willingness to spend.
Summary in tabular format
Source: GfK TEMAX ® Romania, GfK Retail and Technology
research
GfK TEMAX ® Romania is an indicator developed by GfK Retail and Technology Division to monitor the markets of durable goods . The GfK TEMAX ® report is published internationally . The findings are based on surveys by GfK Retail and Technology’s retail panel. The retail dashboard contains data from more than 190,000 retail outlets worldwide . All reports and press releases are also available on the website www.gfktemax.com .
The GfK Group
GfK Romania is the leader in the ranking of market research companies in Romania, with a turnover of 9.1 million euros in 2008, and it ranks fourth worldwide.
Founded in 1934, the GfK Group is today, after decades of experience and innovation, one of the world leaders in the field of market research, with 130 representatives, offices and active participations in over 90 countries and approximately 10,000 employees. The activities of the GfK Group are divided into three segments: Ad Hoc Research (Custom Research), Continuous Research for electronic and household goods (Retail and Technology) and Media. For additional information, visit the website: www.gfk-ro.com
