Appliance makers make new attempt this year to readjust prices. On the Eletrolar Show, fair of the sector going up tomorrow in São Paulo, the price lists are of 5% to 12% above the figures reported last year, according to executives heard by value. The adjustments must reach to the consumer if retailers accept the adjustments, from the second half of August, after father's day.
The negotiations have not been easy because the consumer has shown more retracted. And the weak demand does not have open space for price increases above inflation. According to the IPCA index, which measures inflation, prices of home appliances rose 4.73%, 12 months to June, while the overall average prices climbed 6.70%. Products such as TV and stereos show 0.85% drop in prices, in the same period (see chart).
Until mid-August, manufacturers and retailers continue to work with tighter margins, says a source.
The cost of production is rising. In addition to the dollar, with a high of 11% compared to the actual year, and 6% in the last two months, raw materials (such as plastic and steel) are more expensive. The law of truckers, sanctioned in April 2012 and that determines new rules on working hours of drivers, makes the shipping.
"Bring the product of Manaus to Sao Paulo is more expensive," says the President of Whirlpool, João Carlos Brega, who commands the Brastemp and Consul brand strategy. He says that the new law increases the freight cost of 15% to 30%.
The devaluation of the Brazilian real also weighs. "When the devaluation of the dollar is 3%, 4% or 5%, I can absorb. But the increase is significant, of 11%. Will have some price increase ", says Cyro Gako, Senior Vice President and Philips lifestyle, which includes appliances, as the Walita, to toiletries, as shavers.
The Spanish Taurus group, owner of the Mallory brand, produces hair plank ("flat iron") the iron and reduced from 8% to 12%, prices of some products at the fair. "It is a non-linear increase, product-by-product. Each case is studied, "says Àngel Riudalbàs, President of the company in Brazil. Eletrolar's environment, he said, is 10% adjustments 15%. "No one has fringes to hang so much loss, no one. Cost increases as these need to be transferred. No one is talking to the competition, but the market says. The first reaction is always ' I will not pass ', but what is dollarized, is dollarized, "he says.
Riudalbàs makes the dollar account: in 2012, the company worked with the currency in R $ 1.65, and now there are estimates of $ 2.27 for the end of the year-high of almost 40%. "The industry does not pass this increase. So deal. Can take from 15 days to two or three months. We will negotiate with retailers. " The Executive lives in Fortaleza and points out another problem: the cost of labor, which went up 10% this year.
The German industrial cleaning machines must be Wap and domestic. Revenue increased 27% in the first half, but the margins were compressed. "It's bad equation. You make effort to sell, and the more you sell, the more you lose, "says Pavan, Director Édla in Brazil. "We're a little fearful about how consumers will react. Was willing to pay $ 400. Will it pay $ 450, $ 460? "says she.
The Executive says that the moment is difficult for "the whole sector, with 80% of ' players ' speaking the same thing". The price of Wap for Eletrolar is adjusted between 5% and 7% to offset part of the loss of profitability. "For the second half, the new Exchange's position caught everyone by surprise," says Édla. "The industry is very cornered in this situation. The retail response is not automatic. From the moment you make the transfer he has a month to set the table. "
Without commenting on the products, but talking about a general Outlook for the second half, the President of Whirlpool is cautious: "at the moment" there is no price increase. The competitor Electrolux says that "could not set the price of home appliances that are at the fair for this year".
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