Appliance market will only see recovery in 2017

The year 2016 even started and the household appliance industry white line expects to repeat the numbers weak this year. With the advance of the unemployment and credit more expensive and restricted, the contest for sales will be even more fierce.
According to the National Association of Manufacturers of electrical and electronic products (Down), the category records 15% drop in production between January and September over a year earlier. The forecast is close to 2015 17% loss in comparison with last year.
"We want this retraction of 20% this year, but the percentage is almost about it," said the President of Eletros evaluations, Ajit Kiçula.
Mabe of Brazil, a subsidiary of mexicana Mabe, expects the market next year, stay close to that of 2015.
"We have retraction in sales this year, following the industry average," said commercial Director of Mabe of Brazil, Moses Tortoretto.
In an exclusive interview to the DCI, the Executive said that with the end of the judicial process, to which the Brazilian subsidiary of Mabe submitted in early 2013, the strategy is to relaunch the portfolio of appliances of marks and Dako.
"We expect a slow upturn in 2016, with the country's economy still in a process of adjustment, and the household sector must have a performance in line with this economic backdrop," said he.
For Tortoretto, the slowdown in demand on the white line, which intensified in 2015, began giving the first signs in 2012. "That year we started to notice a fall in orders attributed to two factors: an anticipation of purchases by reducing the tax on industrialized products (IPI) and the retraction of the offer."
Competition
With the renewal of product lines of the two brands, Mabe plans to retrieve its participation in the Brazilian market, in the medium term. "We know that the Brazilian is shopping in a more rational, but we're betting very gain with the natural demand for renovation and supply of products that represent a cost-effective front to competitors," said the Director of Mabe.
Before the recovery process, Mabe had a slice of 25% to 30% of the category of stoves. Today, such participation is approximately 16%. According to Tortoretto, in cooling the numbers stayed virtually stable and, in the line of washers, the manufacturer was off the market from 2013.
"We see an opportunity to extend gains in the category of washing machines, but as price competition is very fierce in the smaller lines, we are focusing our strategy on 15 pounds", quotes.
He believes that, in that niche, Mabe will achieve better sales performance, with Brazilians willing to spend more for a product of higher capacity. "If the consumer understand real benefit with the amount spent, will be more willing to buy", defended the Executive.
Mabe plans, with the Continental brand, meet the demand of the classes B and C in major urban centres. Already the Dako brand, with an average of lower price, is dedicated to classes C and D, with greater participation in the cities of the interior of the country.
On the evaluation of Kiçula, Down Gavin, even with strengthening their actions to warm up the sector, the resumption of sales still depends on different factors. "The demand is very tied to consumer confidence and, right now, even though the Brazilian has money to buy, he's holding the acquisition by the insecurity of the economy as a whole," ponders the leader.
Two global manufacturers, Whirlpool-owner of the brand Brastemp and Consul-and Electrolux recently evaluated the impacts of the conjuntura econômica brasileira in the results.
Whirlpool said the demand was weaker in the third quarter of this year. In results report, company executives said they expect a recoil of approximately 20% of the volume sold in the Country.
Brazilian sales represent less than 10% today of Whirlpool's global business.
The competitor Electrolux also announced drop in sales in the last quarter in the country. According to report from the manufacturer of appliances, the Brazilian market has decreased significantly over the past year, impacted by the macroeconomic environment.
"The operating result [in Latin America] has deteriorated as a result, primarily, of the sharp fall in the Brazilian market, mitigated by about measured by an improved financial performance in Chile and Argentina," said the company, in the report.
The Chief Executive of Electrolux, Keith McLoughlin, emphasized that the company has reduced costs and applied price increases to offset the effects of the exchange rate in the manufacturer and compensate for the less favourable conjuncture to sales. The prospect for the macroeconomic scenario in the country, however, remains weak.