Dan Ostahie, chairman of Altex, the biggest retailer of electronics and home appliances on the Romanian market, believes that air conditioners will be one of the most important segments on the market this year, with growth expected to surpass the rates of LCD TVs and laptop computers.
"LCD TVs and laptop sales will continue to rise, but we are counting on air conditioners to a large extent this year. We have faith in this segment, even when out of season, given the real estate market's development, where air conditioners have become a necessity in residential properties," said Ostahie.
For 2008, Ostahie has set a sales target of 65,000 units - three times more than the volume of 21,000 units sold last year, while the increase is expected to be triggered by products with lower than average prices.
Importers have put the overall market at approximately 120,000 units, up 30-35% from last year.
"Low prices will drive sales because this is what customers look at first. When it comes to replacements, the second buy, then noise level, the cooling agent, the capacity and energy consumption will matter, too," Ostahie added.
Considering consumers' behaviour, which often involves impulse buying, the company estimates the largest part of demand will be registered for its own brands, with an average price of 800 RON, while higher-priced brands will contribute less.
While air conditioners, LCD TVs and laptops will still be the main features on stores' shelves this year, Altex anticipates moderate growth on the white goods segment.
In the first quarter, the company's sales grew by 46%, say Altex representatives, while the year-on-year increase can be attributed to "price settling".
Dan Ostahie did not specify the value of first quarter sales or the exact growth rate.
At the beginning of the year, the top three retailers of electronics and electrical home appliances, Altex, Domo, and Flamingo, projected sales increases of above 35%, with the largest part of turnover expected towards the end of the year.
"Last year, consumers were reluctant to buy home appliances because prices had not been adjusted to the zero-tax level yet," said Dan Ostahie.
This happened as products sold during that period were registered within the inventory toward the end of the previous year, before EU integration, when import taxes were dropped.
This year, Altex forecasts turnover worth 430m euros, up 35% on last year, while growth is expected in the wake of an expanded retail area.
Altex group announced the development of six shopping centres that will include, besides Media Galaxy stores, other companies' units, with the presence of some furniture retailers or DIY stores already announced for some projects.
Altex
Expects the segment of air conditioners to register higher growth this year
In 2008, aims to sell 65,000 air conditioners, three times more than the volume of 21,000 units sold last year, while the increase is expected to be triggered by products with lower than average prices
In the first quarter, the company's sales grew by 46%, while the year-on-year increase can be attributed to "price settling"
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