In comparison, spending is 55% higher in Hungary and more than double in the Czech Republic. In Germany, Europe’s most developed economy, average consumption of computer and electronics products stands at EUR708.5. This is the most important indicator of the computer and electronics market, which in turn is an indicator of the level of development of a specific economy.
“I think we could catch up with the Czech Republic in five to seven years if nothing happens at macroeconomic level that would change the current trend. The potential is definitely there,” says Mioara Bolozan, marketing manager of Whirlpool Romania. She is one of the longest-standing executives on the market, with about 15 years of experience with the home appliances manufacturer.
“Romanians understand technology and love it, but it depends on how affordable it is. I think they will gradually start going for better, more energy efficient products, with a price to match.”
This is how a new process to replace home appliances and electronics bought during the boom years which have already reached a certain wear level will begin.
Mioara Bolozan says Romania should follow in the footsteps of Western countries and even those in the region, where the emphasis is on energy efficiency.
“In Hungary for instance, the government subsidizes purchases of energy efficient products. Those who buy such products get a EUR100 rebate or even more. The move gave a significant boost to the market, which went through a really difficult time at the beginning of the crisis.”
Computer and electronics sales in Romania stood at about EUR2.3 billion, almost matching the 2008 level, EUR2.5 billion.
“It is hard to make forecasts about the development of the market. We are now seeing positive effects induced by taxation, such as the VAT cut, but Romania needs structural reforms in a number of sectors, such as education, healthcare, and public administration,” says Dan Ostahie, the owner of Altex, the largest local computer and electronics retailer.
If such reforms do begin, and the budget deficit is kept under control, consumer spending will see healthy growth helped in part by healthy lending, the entrepreneur added.
“How quickly Romania catches up with Czech Republic and Hungary in terms of average spending per capita on computer and electronic products will be decided by the politicians and has to do with the time it takes to implement such reforms.”
(English version by Loredana Fratila-Cristescu)