On the way to full recovery
Study by research firm GfK shows a positive scenario for all durable goods products in 2019, especially those with more embedded technology. In 2018, the segment closed with a result that was higher than expected, and the revenue obtained exceeded the level of 2014, the pre-crisis year.
Consumer confidence – which made a significant leap after the elections in October last year – had a positive impact on durable goods output in 2018. The sector grew above expectations, i.e. 6% in value and 8% in price. In volume, it fell 3%. In total, it recorded revenue was R$ 106.9 billion.
The result indicates that 2019 can be a very positive year and of increase for the sector, says Fernando Baialuna, retail director of research company GfK. “Consumer confidence is a decisive factor and, at this moment of political change, it is directly related to the Social Security Reform. And if the reform is approved, the 2019 scenario could be even better than 2018.”
All categories of durable goods, especially the most innovative, are expected to grow in 2019, says Fernando. “In the first place, there is a repressed demand, and secondly, innovations – such as the 8K television and foldable smartphones, for example – are going to attract consumers, as new technologies on different devices.”
Balance of 2018
Last year was important for the electronics sector, mainly for televisions due to the World Cup. The event boosted sales of these devices with a focus on larger screens, such as 65” or more, with 4K technology. The category obtained excellent numbers: in value, it grew 19% and, in units sold, 15%, according to the studies of GfK.
The handset category grew 2% in value, compared to 2017, due to the evolution of premium smartphones. The industry has shipped more technology to devices, so much so that today consumers value the larger screens, at least 5.5″, and faster processors, larger memory for their applications and two or three cameras.
The Brazilian telephony market matures, in the same way as in more advanced countries, but still presents good opportunities for sales growth. “In 2012, we have reached a greater number of active mobiles than inhabitants. More mature countries have stabilized sales, and the challenge is to deliver more technology. The growth comes with the high end market,” says the director of GfK.
Air and handheld
The air-conditioning category, which depends on seasonality and climatic conditions, performed well in 2018. It grew by 11% in value and 14% in volume compared to 2017, once again due to innovations contained in the devices, such as the Inverter technology, which reduces energy consumption. “Technological innovation attracts consumers” says Fernando, about the increase in sales.
Other categories that performed well in 2018 were those of cooktops and electric ovens. The former grew 12% in sales volume and 8% in value. Ovens registered a 13% increase in sales volume and 11% in value. Also, the personal care category performed well. Hair dryers, for example, grew 8% in sales volume and 10% in value.
The crisis, somehow, was reflected in the growth of the category of electric handheld devices, mainly in cooking products. “It is important to remember that by not consuming services outside the home, reducing these expenses, the Brazilian invests in the ritual of cooking, changing its habit. The performance of the category has much to do with the “gourmetization” of the home” explains Fernando.
White goods and IT
Within the white goods, 2018 was positive, especially for refrigerators (+12%). Growth was observed in the lines with innovation, as the refrigerators with three or more doors; side by side; and the ones with frost-free freezer. In total, the white goods grew 7% in value and had a price variation of 7%.
Information technology lost importance last year: it fell 10% in volume, grew 3% in value and 14% in price. Notebooks account for 62% of the category’s sales today, and sales of products with better processors are growing. The gaming notebook segment is the most promising in the market, although it is still a niche category.
In the overall assessment, 2018 was far better than the retailers themselves imagined. The revenue obtained in 2018 exceeds 2014’s level, the pre-crisis year. They sold well with Black Friday and Christmas. “The year closed with a positive scenario, with results higher than expected,” says GfK’s retail director.
Fonte: Eletrolar News Magazine #129 - CEOs Special Edition 2019
O Único anuário de eletrodomésticos, eletroeletrônicos, celulares e TI - 2016.