Indesit: Home Appliance Sales Could Pick Up If Economy Recovers

Cosmina Capalău

Sales of home appliances have been plunging since the beginning of the crisis, marking significant differences between the first quarter of 2009 and the corresponding period of 2008. Rodica Stere, Marketing Manager of Indesit Company Romania told BURSA that "while last year started with a strong sales growth, this year is not quite like that."

"Considering the current context, which changes from one week to the next, it is difficult to estimate how the market will perform this year. Many factors can influence both sales and our general market: macro-economic policies, salary policies for the next few months, the exchange rate of the national currency, lending policies and tax policies. For the time being, we can notice that the national currency has somewhat stabilized and we hope that the market will embark on a positive trend towards the end of the year," Stere added.

• Families postpone buying home appliances

Referring to the types of customers affected by the economic crisis, the Indesit Company representative said that "when the financial situation of a family is affected by a decrease in the purchasing power for basic foods or household utilities, it is normal to see some reluctance to invest in consumer durables. This category of consumers may postpone their buying decision or give it more thought before they make a purchase," Stere added. She further told BURSA that "another cause for the reluctance to buy is the lending plunge, as lending used to be the driver of many industries for years."

As for the choice for less expensive products to the loss of the more expensive ones, the Indesit Company representatives believes that "this depends from one consumer to the next. The Romanian market was focused on lower-end segments in the past years, too, as the more expensive products had a considerably lower market share. It was lending that allowed consumers to choose better performing products, with a multitude of functionalities and therefore a higher price. If the product is paid for in instalments, the difference in the monthly payment is hardly noticeable. Now, when products have to be paid upon the purchase, it is more difficult to save money, so it is more likely that some of the consumers will focus on less expensive products. On the other hand, I think that people should focus on the products that come with technological performance, can save resources and ease household work," said the Indesit Company Marketing Manager.

The Romanian market for home appliances was never entirely saturated. The representative of the appliances producer said "we are in a paradoxical situation: the market in Romania was never really saturated as the consumers" needs were never fully satisfied. There is still great need for home appliances. The current stagnation is caused by a decrease in demand resulted from the macro-economic circumstances. Therefore, if the economic situation stabilizes, we could hope for a rapid recovery of the industry. If not, the decline could continue until the end of the year," Stere concluded.

Rodica Stere, Marketing Manager, Indesit Company Romania: Considering the current context, which changes from one week to the next, it is difficult to estimate how the market will perform this year.

"When products have to be paid upon the purchase, it is more difficult to save money."