Friday, May 29, 2015

High-dollar retailers will negotiate Christmas articles up to 10% more expensive

Sao Paulo-the economic scenario should impact of negative sales way of decorating products and seasonal items for Christmas. The items must reach 10% more expensive to the market, estimate exhibitors Friday Christmas Show, which begins tomorrow in the city of São Paulo. .
Considered the largest industry event, the meeting will have about 110 exhibitors, and for most high of the dollar and the uncertain scenario divided opinions about the market. While some exhibitors believe an increase in sales of at least 15%, others expect a fall of up to 30%.
The company only Christmas, which manufactures and sells Christmas trees and other decorative items for the date is one of the fearful. Regarding the expectation for the event, the owner of the company, Antoninho Luiz Lencioni, doesn't seem optimistic. "We are very worried. Last year we had great results at the fair, but this year should be a setback of 30% in sales, "he estimated.
Negotiations
For 2015, the company's expectation of fall in the negotiations of the products of 20%. Located in the neighborhood of Vila Prudente, in São Paulo, the Only industry Christmas is for 39 years in the market and account with 41 employees. The company's participation in the fair since the first edition.
Lencioni said a possible default could harm the industry, which usually has good result of retail sales due to the appeal of the largest national retail date.
According to the businessman, some items of Christmas had to be reset in the prices, which ranged from 10% to 25%. The increase in products would be a result of the high dollar and labor spending. "We're managing prices. All are being forced to cut costs and shrinking profit margins, "said Lencioni, that between the products imported from China has balls to decorate Christmas trees.
More optimistic
More optimistic vision are exhibiting at the fair, Cromus, which sells decorating items like trees, balls and various ornaments and says have incremented the volume stocked at 30%. The company also increased the size of the exhibition space at the fair, despite the fall in consumption in retail this year as happened on mother's day. "We expect an increase in sales of 15%," commented the President of the Cromus, Eduardo Cincinnatus.
According to the businessman, 50% of the sales volume of the company's Christmas products are sourced from the Christmas Show. He explains that 100% of Christmas items are imported, and that even with a good result in the negotiations this year as the exchange value was not positive the company will have to readjust prices by at least 10%.
According to the President of Abdala Jamil Abdala, Francal Feiras, considering the time that Brazil's economy lives need to accept an eventual decrease of results, but he hopes that doesn't happen. "Christmas is a party that all celebrated. In addition, exhibitors are also diminishing profit margin to avoid losing sales, "said.
Despite the economic slowdown scenario, Abdala believes that due to the high dollar prices probably are higher compared to the previous year, sales will follow in line with the results of last year. According to Abdala, the fair is the largest event of the segment in the Americas, still has little participation of Brazilian industry. "Their presence in the national sector is too small. More than 95% of the products brought by exhibitors are imported, "he explained.
The Fair
The event will occupy 34 thousand m² of the Expo Center Norte, in São Paulo. The area is 36% higher than the previous edition. Will be 110 exhibitors and is expected to attract 28 thousand visitors between retailers, corporate buyers, decorators and other professionals in the industry. The event is not open to the public, but has free entry and will be held from 30 May to 2 June.
Among the main products marketed at the event are centerpieces, ribbons, fabrics, Christmas trees, baubles, candles, garlands, lights, gift paper boxes, Nativity scenes, dolls, special utensils, paper boxes, gift sets and handmade items. As the Francal, are expected visitors from several countries, including United States, India, China, Spain, Angola, Argentina, Uruguay, Chile, Bolivia, Peru and Paraguay.
Among the new features are the Workshops of Christmas Arrangements, with lessons presented by decorators and floral artists will show techniques for making ornaments on tables, display cabinets, trees and garlands baskets. The event will still count with the second edition of the gathering of Santas, action that will bring together 100 professionals on May 30.
DCI - 29/05/2015
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