Euler Hermes: sales of electronic devices sees impressive 15 pct growth in 2017

Georgeta Gheorghe 23/04/2018 | 16:25

According to a report released today by Euler Hermes, the sale of electronic devices has seen an impressive year-on-year nominal growth of between 14 and 15 percent in 2017. 

The results recorded were similar to the yearly growth of 12.5 – 14 percent posted between 2014-2015. In 2016, there was a 9 percent year-on-year growth.

In real terms, in 2017 the growth is significantly lower, after the study takes into account the inflation level recorded in December for non-food items, which stood at 4 percent year-on-year.

In the past years, is was the mobiles that determined the growth rates with over 25 percent, followed by home appliances and electronic devices. Moreover, there is a growth trend of the share of phones and laptops in the medium and premium category, with positive effects on the margins, the report shows.

The printing devices market continues to see a decline, with increases being recorded for categories such as laptops, with consumers preferring top of the range brands.

The market is dominated by Altex and Flanco, followed by Dante International. Th study reveals that there is a constant pressure on the profit margins, which is partially explained by the trend that sees consumers purchase online.

As a market of producers, the growth opportunities of importers’ margins are limited. Sales are also heavily influenced by seasonality. Hence, sales in the last quarter – which includes Black Friday and year-end holidays – represent up to 40 percent of the total sales.

Banks also showed an increased appetite to finance the needs of capital in the past two years, and counted on the upward trend in what regards consumption.

The biggest growth opportunities are found in the online segment, both via organic increases, as well as via takeovers and acquisitions. Companies that are active in the online environment are generally below EUR 100 million, except for the market leader.

In conclusion, the seasonality and the preferences of consumers, which are in a continuous change, provide a volatile character to the market.

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Georgeta Gheorghe | 06/06/2024 | 16:28
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