Franke expects 10 percent local household market increase

Florin Porojan, general manager of Franke Romania, expects the local sales of household appliances to increase by 10 percent, after a market drop of 40 percent last year. High-end products sold better, according to Porojan, but purchasing decisions were taken more prudently.

Corina Saceanu

To what extent did you reach your target of keeping a constant turnover last year compared to the previous? What tools did you use for this?

Franke Romania’s revenues last year were satisfactory, considering last year’s economic evolution. So as the electronic and household appliances market dropped by 40 percent, the fall for Franke Romania was lower than the market. This performance was possible due to a management adapted to the new conditions and to a team which understood that customer relations are key. Innovative offers, with last generation quality and design, counted more in purchasing decisions.

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So high-end systems did surprisingly well in 2009, with sales at the same level as in 2008. The same happened with hood sales.

What were the main changes in consumption habits for Franke’s target customers and how did you try to fight those that would have influenced sales negatively?

Franke’s traditional customers are those on average and above average incomes, who in 2009 preferred quality instead of cheap products but of dubious quality.

However, purchasing decisions were taken more prudently than in previous years, and clients came to showrooms better informed.

Even so, in 2009 professional advice counted more for our customers.

What do you expect in terms of home appliance sales this year in Romania? What could the growth channels be for this market segment?

Considering the economic evolution in the last period and the seasonality of home appliance sales, I believe the market will grow by 10 percent this year.

The fact that lending options launched by banks have increased in number shows there’s liquidity on the market. Step by step, Romanians will regain the trust they lost in 2009 and will re-start taking out loans, maybe for shorter periods of time and smaller sums.

It’s possible that those who have saved money will start using their savings to make acquisitions. Plus, the First House lending program will directly influence the sales of incorporated household appliances. The young people who go for First House usually chose to furnish their kitchen.

What were the best sold products last year? How do you explain this?

The best sold system was Crystal, which sells for around EUR 4,700. Why did Romanians prefer high-end systems?

Because 2009 was the year when clients focused more on design and functionality, and the tendency was reflected in the evolution of our sales.