ECONOMY

Slump is on in electrical goods sector

The slump in the Greek electrical goods market continued in the second quarter of 2011, according to data published by GFK Temax, which found that total sales in the sector reached 584.4 million euros in the first six months of the year, or 19.5 percent less compared to the same period in 2010.

In what appears to be a persistent trend, the decrease in value was greater than the decline in volume, which suggests a significant drop in average prices, mainly because of ongoing special sales and the infiltration of generic brands launched by retail outlets.

The biggest slump was noted in telecommunications goods and equipment (-24.9 percent), followed by consumer electronics (-22.4 percent). Small household appliances saw a reduction of 18.4 percent, photographic equipment and goods dropped by 15.7 percent, large household appliances by 14.7 percent, computer hardware and software by 14.3 percent and office supplies by 11 percent.

In the small domestic appliances sector there was a significant increase of the number of brands – old and new – available to consumers, as well the the introduction of new models that are cheaper than the leading brands, leading to an overall reduction in average prices.

The large household appliances sector was mostly affected by a major drop in the sales of refrigerators and dishwashers. Sales are affected by nosediving production (which dropped by 54.3 percent in the first quarter of 2011) and, of course, by consumers? shrinking incomes due to the financial crisis.

In computers and software, which saw a 14.3 percent reduction in sales, laptop computers were the best sellers, followed by notebooks, and especially by models with a 15-inch screen. Netbooks were the laggards.

In the telecoms sectors, smartphones continue to make significant headway, though the introduction of numerous, cheaper models has meant that their sales are not yet in the double digits in terms of value.