“We estimate sales to reach RON28 million this year, after an about 15% increase. It was a difficult and hard to predict year, not one that went smoothly like the previous ones. The political uncertainty made an impact on the economy and affected the customers’ purchasing intentions,” says Loredana Butnaru, the Romanian executive who runs the local retail and wholesale operations of Miele. The German group also has a subassembly plant in Brasov, run by a different entity.
Loredana Butnaru says sales have fluctuated heavily from month to month, from 10% to 60% growth in 2017. However, October was a good month and the end of the year can make a difference because the last two months usually contribute up to 35% of the revenue.
Sales reach RON2 million to RON2.5 million a regular month and may go to as much as RON4 million in November.
November is an important month because of the Black Friday.
“Our best-selling products are usually high-end products,” says Loredana Butnaru, adding most customers are individuals, not architects or real estate developers.
Miele products are available in 60 stores in all, three of which it owns, five exclusive stores and the rest partner stores. The partner stores include Altex and Flanco, independent and furniture retailers. Its own stores are the showroom in Piata Presei Libere in Bucharest and two Miele Point – one in Piata Romana in Bucharest and the other in Constanta, which it opened in 2017.
“We plan to open two or three exclusive stores or stores of our own using the Point concept. We will go to cities where we don’t have a presence or open a second store in the same city only if operated by the same partner.”
There is still room for expansion in Bucharest, so the company is thinking of going to a mall in two or three years, but it is too early to say where. (EUR1=RON4.5968)
(English version by Loredana Fratila-Cristescu)