Sale of home appliances have 16% drop

With credit harder and lack of consumer confidence to incur debts, sales of home appliances accumulate 16.5% fall in the year, which generated the closing of shops. The problems are mainly in the sale of the Brown line, which includes televisions and audio products.
According to the IBGE (Brazilian Institute of geography and statistics) released on Tuesday (12/7), the volume of retail sales in Brazil presents fall for 14 consecutive months – in the year, the accumulated negative is of 7.3%. The appliances are falling for 16 months.
For Wilhelm Dietze, economic advisor, the sharpest drop of these products is related to the difficulty and the lack of consumer confidence to invest in this type of product – you can rely on for financing. "There is a very great distrust. The consumers are not willing to understand your income and are avoiding to commit in the long run, "he says.
"The high prices implemented by manufacturers, pressured by operating costs, also helped restrain the appetite for new purchases", complete Elton Morimitsu, Euromonitor research analyst.
This has generated effects such as the closing of shops. Via Retail, Casas Bahia and Ponto Frio, for example, closed 21 establishments in the first quarter of this year. In 2015, had already been 39.
The decrease was mainly on the Brown line, which includes televisions – according to Eletros evaluations (Association of industry manufacturers), the retail sales of this product type have fallen 40% this year. The country produced 2,500,000 televisions this year until April, a fall of 29.72% over the same period last year and 58% compared to 2014.
Lourival Kiçula, President of the entity, says these devices already have high market penetration. In times of crisis, there is no incentive for the Exchange.
The expectation, however, is that the data at least stop getting worse in the second half. "The worst is over, it''s July, the beginning of the second half, which was always 60% of sales volume," he says. "If the industry has already made the layoffs necessary, won''t do more now."
Small appliances: better performance while sales of TVs fall, there are other products that are beginning to be part of Brazilian homes, according to Euromonitor. According to the consultancy, the segment of small appliances has been showing better performance.
Sales of coffee machines, for example, grew by 13.2 percent in 2015 compared to the previous year, to 934,400 units. The fryers were discharged from 18.6%, to 1.1 million. The reason, according to Euromonitor, is these products have lower prices and also are less homes. "While more than 50% of the homes have an automatic washing machine, only 25% have an espresso machine," says Morimitsu.