Household appliance sector see back of demand only in 2018

Sao Paulo-the white goods appliances (fridge, stove and dishwasher) are little optimistic for this and next year. Industry executives project the beginning of market recovery only from mid-2018.
"Three years ago people were exchanging the appliances because they had higher purchasing power," the President of the industry Center of Amazonas State (Cieam), Peter Wilson. Today, he said, given the current economic conditions-rising unemployment, high inflation, credit constraint and tax increases-"the consumer uses it has." "The internal market without trust because no one knows when the political and economic situation must improve," says Peter, who considers "a lost year 2016" to the white line.
The President of the National Association of Manufacturers of electrical and electronic products (Down), Ajit Kiçula, believes from the second half of this year it is possible to notice a reaction in sales, since the Brazilian was more optimistic after the changes in the political landscape, with the impeachment process of Dilma Rousseff. "But it will still be hard to beat the numbers 2012, when you reach the peak of 20 million units sold. That just let''s see after 2018 ", Kiçula. The peak of the sector was based on reducing the rate of the tax on industrialized products (IPI).
As power lines, lifting sales of appliances retreated 18% in the first quarter of 2016 as compared to the same period last year, totaling 3.3 million units.
The weakness of the market in the first few months took the giant Whirlpool, owner of the brand Brastemp, Consul and a drop in sales forecast 10% Brazilian in 2016 compared to last year.
The company recorded sales of 22% downturn in Latin America between January and March over a year earlier, to $ 705 million. Downtown, second quarterly report of the manufacturer, whether to the adverse conditions of the brazilian economy, with emphasis on the impact of devaluation, rising inflation and stem unemployment.
The Swedish Electrolux, the second largest manufacturer of home appliances in Brazil, also noted a decrease of business, according to its report of results of the first quarter of 2016. Brazil and Argentina were the main responsible for 31% of the demand indentation in Latin America in the first three months of 2016 in comparison with the same range of 2015.
Potential
To the President of the power lines, the restoration of this market will be slow, gradual and dependent on the economic policy. "All the factories are idle capable, everybody kind of stopped. Still, the trend is because we''ve reached the bottom of the barrel, and it needs to start growing. But the Government needs to ensure employment for the consumer to have confidence to buy, "said Lourival Kiçula, in an interview to the DCI.
Today, the sector operates with approximately of 84% of the installed capacity, according to the latest survey conducted by the National Confederation of industry (CNI). Between 2012 and 2013, when this chain tried a strong demand, boosted by the large supply of consumer credit and the effects of the reduction in the rate of the IPI, factories used close to 90% of capacity.
The scenario is even worse for other links in the chain of white thread, as suppliers of parts and components, report the industry representatives.
The Emicol, manufacturer of components for home appliances, currently operates with 60% of its capacity, the company''s Director of new business, Faris Macul Grandson.
"We are operating below the ideal. Only from 2018 should reach 80% or 85% of this capacity, a reasonable number, "he explains.
Another vendor who operated below its productive potential is the Metal Coat. According to the company''s commercial Director, Sérgio Camargo Filho, the factory has a capacity to produce 230 tons of metal per month, however, has worked with 200 tons.
"The market is trying to react, but I see very little improvement. Our first half was terrible.
Last year alone, the company''s revenue fell 15% from 2015, said the Executive, without disclosing figures.
"With a market bottom, any oxygenation is satisfactory. However, it may be that this improvement does not come true [so quickly] ".
Negotiation
To cope with the drop in sales at retail has been unfounded, said the General Manager of white line of LG Electronics in Brazil, Kati Days. According to her, the strategy comes in helping the company deal with the effects of the crisis in Brazil and follow with their growth plans.
"It was essential to share our situation with the other end of the chain. We had to reduce a bit the volume of deliveries because of the market downturn and retail, aware of this, worked together to negotiate ".
The Executive commented, avoiding many details, that LG has failed to meet its targets for 2015 in the country, according to the Brazilian macroeconomic framework. But for this year has already begun to design a stabilization of the conditions.
"We''re already with a recovery plan and we bet in best numbers from 2017," said Kati Days.
The manufacturer of appliances of marks and also seek Consul Brastemp in partnership with retailers a choice to boost business in Brazil. In a recent interview to the DCI, the Vice President of sales and marketing of the multinational in Brazil, Paulo Miri, commented that the company decided to internalize sales promoters, previously outsourced employees.
According to the Executive, the strategy aims to improve customer service to the final consumer within the point of sale, offering information about the product that may contribute to the buying decision.
"The goal is to help retailers right now of no intention of shopping to convert the sale to the consumer," explained Paul Miri.