Electronics is at the top, literally. As a result of the sharp fall in sales, manufacturers, trademarks and retail merchants avoid the devaluation of the cost and financial costs. settled inventories. A AFARTE poll said average television prices had a 24.7% rise, falling inflation (48%) and the rise of the dollar (101.4%). They calculate the market The World Cup of 2018 lost more than 1 million units as a result of the crisis, the rise in fees and the loss of purchasing power of the wages.
All categories of electronic categories fell last year (refrigerators, washing machines, kitchens, mobile phones, airplanes and computers), but retailers and manufacturers warn that most of the products are the cheapest in dollars in the region. "The current tool price reflects $ 28"Alejandro Toskano, Executive Senior Whirlpool says," Chile's shopping trip has been cut off, you can not see it anymore, "said Federico Hellemeyer, AFARTE, Argentine, $ 20, who crossed the mountain to destroy electronics and clothing.
Taxes and fees have increased the panorama. Most of all, the most affected categories are television and computers. According to IDC, sales of PCs and laptops fell almost 50% last year (about 920,000 units). And despite the rise of 37% in the first quarter, Lenin CEO Juan Martín says. "Since then, the fall rate has risen and the rate has risen," he added. China's leading brands also acknowledge that the average group price has risen by 70%. "But it has dropped 20% in dollars"he clarified.
Exchange rate information technology and mobile phones have a special impact. "PCs have been imported and mobile phones (especially those coming from Tierra del Fuego) come from cars in a very high value-added process," said sources of extensive industrial history. Consequently, a great devaluation of the price. From now on, there were two categories that rose most in 2018.
However, according to the sector, the lack of financing is affecting the increase in prices. "The brand is not the price of the product but it is published quota valuea ", such as Bruno Drobeta, Samsung's Mobile Site Director. On the other hand, mobile phones sales have declined sharply in the rest of the categories." There was less impact on the first consumer not relegating to consumers, "added Drobeta, slightly lowering the average card.
Dollar Shooter In 2018, World Cup Years, television stopped sales.
World Cup warm
The rapid decline in dollar dollars, rates, and inflation (loss of purchasing power) have stopped all bad values. The TV case is illustrative. For the World Cup, 3.5 million televisions were manufactured, slightly above the annual average. Aside from the stock market, AFARTE (the terminal of Fueguinas Terminal) has produced 2.2 million units this year. "The market was very hot in the World Cup and Sales were dismantled from the beginning of June", Emphasized Hellemeyer.
In this constant context, manufacturers, brands and commercial chains have difficulties in discouraging prices for products based on imported inputs. "Today the whole industry is losing"Laments Enrique Laffue, director of LG. As regards prices, the executive gave 32-inch television as an example:" At the beginning of 2018 it was an average of US $ 382, and today the same model is US $ 196, "he compared.
AFARTE prepared a comparative report on television prices and brands, with Smart 40 "Samsung costs in Argentina, US $ 364, Chile, $ 408 and $ 498 in Brazil, 43" Philips smart "in US $ 349 and in Brazil, $ 581 US $. In this sense, Laffue went further: "We have a high-end LG cooler model Argentina is cheaper than Amazon, It's ridiculous, "he said.
Executives and manufacturers agree that market normalization may begin in April when inventories are cleared. "Price recovery will depend on the evolution of each category, but the accommodation will be very slow. Currently, chains have a lot of stock products," says Luis Galli, Managing Director of Newsan Fuengian.
Like other market sources, Galli is supposed to The decisive factors in changing three trends, if the dollar stabilizes: "Fees (plans in installments plans), power of salaries and consumer confidence". Eduardo Echavarría, a consultant analyst at GfK, was divided into two years, "had a slight contraction in the first half, recovered a bit in the second, with the evolution of the real balance, with the foreign market stability and a reduction in the interest rate."
With a white line (refrigerators, washing machines and stoves), experts project a similar situation to the 2009 crisis. "It was the year of the election, the dollar in the first semester was going from $ 3 to 5, the rate rose sharply and consumption dropped, after the election, the market has recovered," says Laffu. On the other hand, he acknowledges that "the demand of our sector is very resilient and falls behind context and is rapidly recovering."
Ivan Purtic, Director of Product Mabe (Patrick and General Electric), explained the balances of 2018, due to a sudden crisis, "It's the mother of all the problems". As the senior executive shows that the market "equivalent to non-value pricing and business, with a large inventory, consider it necessary to make money." Purtic says it currently has electrical appliances 20% delay in the price of the economy. "When we come across the listings this year, retail prices are below."
They try to find a positive side in the industry. Like others, Purtic advises you to buy it now. "This is a good option for consumers, taking advantage of cheap prices."
Low air production
According to Annabella Quiroga
Avoid 20% reduction in air conditioning production.
This year, according to estimates, air conditioners will reduce by 20%. Sales growth stopped trading stocks and retailers marketed in 2018 and a slight recovery in consumption in 2019, but production will hit.
According to GFK advisory data, sales fell 16% last year. Based on this situation, AFARTE has a "very daring" estimate of this year's production. They say that they will be between 800,000 and 850,000 units and will be reduced from 15% to 20% in 2018.
From AFARTE, delays have several causes. "The market may be ripe from the peak of 2015, when production came to 1.8 million units. Shopping powers and a few financing options have a tremendous weight."
Daniel Rosenfeld, director of BGH Consumer, owns a brand and a 25% stake in third-party marketing, this year's decline in production will be greater than expected by AFARTE. "The bottoms come from 25% to 15%, but will be a market with more than 1 million Equipped with other 2018 merchandise".
Based on Tierra del Fuego, domestic production is more than 85% in the local market. Disposal is a tough industry, which imports 65% of all components. "The dollar value was greater than 100% and the price transfer should be at least 80% (taking into account the imported component and local inflation) and did not exceed 40%. Under inflation, braking consumption did not increase prices any more." For Rosenfeld, "we are currently one of the best moments in the history of buying electrical appliances, and it's a lot of money, but at a moment the industry will move prices and the sales volume will fall."