In 2013, Romanians bought electrical home appliances worth around EUR450 million, with the market advancing by around 7%.
“In the first months of this year, sales of electrical home appliances rose, by below 10%. Overall, there was an increase in value, but a decline in volume. Romanians bought items with superior technical features as they understood that if they pay more, they get more,” says Mioara Bolozan, marketing manager at Whirlpool Romania.
As regards 2014 sales, she bets the market will expand, driven by dishwashers and built-in products. In the case of dishwashers, the penetration level stands below 5% compared with 80% in the West.
At the opposite end, sales of cookers continue to fall and sales of refrigerators depend on the market.
“The growth rate will depend on consumers’ level of confidence. In macroeconomic terms, Romania fares well, but there is a psychological barrier”.
The increase of sales on the basis of loans in the past year is a good sign for the market. Miorara Bolozan says there is no spectacular leap, but there is interest from the part of Romanians. “The boom years’ level, when this type of sales had got to account for 60% in the total, was not healthy, but I believe 20-25% is a sustainable level”.
As regards the revenue of Whirlpool Romania, Mioara Bolozan says “it registered growth above the market level”, helped by the built-in and washing machine segments. An increase of above 7% (the market’s growth rate) would drive the company’s revenue to around EUR37 million. The business is still far from the 2008 level of almost EUR55 million. One of the company’s bets for growth in the coming years is internet-connected home appliances.
These products are set to be officially launched for sale in the first months of 2015. They will be initially tested in several countries and then sold worldwide.
“Our target is women aged 35-45, but we also address persons above 45 and young people who want to be permanently connected and cannot live without a tablet or phone. The internet is the future in the case of electrical home appliances, too”, said Marco Signa, energy strategy and innovation manager at Whirlpool Europe.
Signa says this type of home appliances will gain ground in Romania as well as people are open to novelty and easily adaptable.
(English version by Catalina Apostoiu)