Hungary’s
consumer appliances market recorded volume and current value sales declines for
the fourth consecutive year in 2011. This negative trend was a direct
consequence of the global economic crisis, which caused prices and demand in
the local property market to fall sharply and reduced the purchasing power of
Hungarian consumers. The impact that these developments had on demand for
consumer appliances was worsened by the fact that many Hungarians had mortgages
and other loans denominated in Swiss francs and euros. When the economic crisis
significantly weakened the value of the Hungarian forint against both
currencies, these consumers saw their debts increase substantially. Political
instability further undermined consumer confidence during the middle years of
the review period. Nonetheless, thanks to a slightly improved economic outlook,
the rates of decline in total consumer appliances volume and current value
sales in 2011 were significantly slower than those recorded in 2010, and also
well below the average rates of decline for the entire review period.
Energy efficiency appliances gain popularity among Hungarian consumers
During the review period, energy efficiency
became an increasingly important consideration for Hungarians when buying
appliances. As household budgets came under pressure due to the economic crisis
and rising utility bills, consumers began to pay greater attention to how much
water or electricity different appliances used. This was especially the case
with regard to major appliances. As consumers became better educated about this
issue, they proved increasingly willing to pay higher prices for more energy
efficient products, recognising that they could prove a more economical choice
in the long term. The fact that energy efficient appliances are better for the
environment also made them more attractive to some consumers. For most
Hungarians, however, the eco-friendly properties of energy efficient appliances
were not as important as their economic benefits. As a result, the issue of
environmental protection was more important in marketing campaigns for
individual brands than it was in purchasing decisions by consumers.
Hypermarkets and internet retailers make gains in distribution
In terms of retail distribution, durable goods
retailers channels continued to account for the largest share of total consumer
appliances volume sales in 2011. During the review period, however, the market
volume share of durable goods retailers as a whole declined steadily as other
channels gained ground, most notably hypermarkets. Volume share gains for
hypermarkets were underpinned by the convenience trend and increased price
sensitivity among consumers in the wake of the economic crisis. Together with improvements
in online payment security systems, these factors also supported more modest
volume share gains for the internet retailing channel. Independent electrical
goods retailers were worst affected by the rise of these channels, with the
market volume share of the former declining dramatically over 2006-2011.
Multiple electrical goods retailers fared considerably better thanks to their
ability to offer wider assortments, more competitive prices and comprehensive
after sales services. These advantages ensured that multiples were able to join
hypermarkets chains and internet retailers in stealing volume shares from
independent electrical goods retailers.
Multinationals continue to lead the Hungarian market
Multinational companies and brands continued to account
for the lion’s share of total consumer appliances volume sales in Hungary in
2011. Electrolux Lehel Hutogepgyar Kft was the leading player in major
appliances, while Philips Hungária Kft led small appliances. BSH Kft was the
overall market leader in volume sales terms. While some multinational players,
such as Electrolux, maintained production facilities in the country, there were
comparatively few independent domestic companies present in the market.
Nonetheless, domestic companies and brands did make steady volume share gains
in a number of categories towards the end of the review period as the economic
crisis made Hungarians increasingly price sensitive. This trend was most
visible in small appliances.
View Complete Report @ http://www.reportsnreports.com/reports/158018-consumer-appliances-in-hungary.html
Released On: 9/3/2012
Views: 3141
Released On: 8/31/2012
Views: 3869
Released On: 8/27/2012
Views: 2154
Released On: 8/23/2012
Views: 3012
Released On: 8/23/2012
Views: 2031
Released On: 8/21/2012
Views: 2725
Released On: 8/16/2012
Views: 3366
Released On: 8/16/2012
Views: 1984
Released On: 8/16/2012
Views: 4232
Released On: 8/14/2012
Views: 2110
Released On: 8/14/2012
Views: 1813