Approximately 3.6 million mobile phones are going to be sold on the domestic market this year, Mihai Motora, sales manager with Avenir Telecom, told ZIARUL FINANCIAR.
"Though the second half of this year will be much better than the first one, this year's overall sales volume will be below the level of 2005," specified Motora.
Rising living costs, as well as swelling property prices and utilities costs are the main factors dragging the market down this year. "Moreover, people's low purchasing potential is also caused by the fact that they have to pay back loans they got in the past," added Avenir Telecom official.
The market trend largely depends on the strategy of the operators present on the market. "A possible lasting war among them would bring much better offers onto the market, implicitly pushing market growth beyond expected levels," stated Motora.
Internity mobile phone and accessories retail chain, owned by Avenir Telecom, currently holds 5% of the retail market, according to the company's estimates.
"Our medium-term target is to gain 10% of the retail market," said Motora.
Internity early this year entered a partnership with Cosmote Romania mobile telephony operator, in the wake of which the retailer sells Cosmote products exclusively in its stores.
Previously, Internity provided such services to Orange, but it did not renew its partnership contract with this company as a result of the talks held with Cosmote.
"It's better to work with a smaller operator, with a stronger desire to penetrate the market, than to be the partner of the leading operator, which is already somewhat satisfied," stated Motora. He added that in the wake of its partnership with Cosmote, traffic in stores increased and Internity brand grew stronger.
Internity generates 75% of its sales through distribution to resellers and hypermarkets, while 25% of the volume is concentrated in the retail segment. Internity currently owns 69 stores and plans to get to 100-110 stores by July 2007, through its partnership with Kaufland hypermarket chain.
Avenir Telecom French company owns the Internity and GlobalNet store networks in Romania. The Romanian branch derived turnover worth 59.6 million euros in the fiscal 2005-2006 year ended June 30, up 42% year-on-year.
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