Electric market: Which products do we put a ‘brake’ on in our markets

Of Giorgos Lampiris

The electronics and household appliances market is showing signs of a decline in its turnover in 2022, after the strongly rising 2021. This results from GFK data for the first quarter of this year compared to the corresponding period last year. Overall sales of the electrical and electronic equipment (TCG) market in the first quarter of 2022 fell by 4.1% according to the GFK data available to us, at a time when there have already been increases in the market, which are reflected in turnover. According to GFK, the average price increase for the entire category of electronics and household appliances in April 2022 reached 38.5% compared to 2019.

In practice, if there had been no product increases, the aforementioned percentage of sales decline would have been greater. The value of sales of electronic and electrical devices in the first quarter of 2022 amounted to 705 million euros. Comparing 2022 to 2020 the four month sales are up 29% and also up 15% compared to 2019.

In terms of individual product categories, IT goods (laptops, computers) and office supplies recorded a 35% decline in the first quarter of 2022 compared to the same period in 2021, due to the strong performance of these products in period of lockdowns and teleworking but also due to the outbreak of the pandemic. This year’s demand settled down significantly, as a result of which the particular big difference in the sales of this category appears. Telecommunications, large household appliances and air conditioners have so far made a positive contribution to the progress of the electrical and electronic goods market.

It was preceded by the strongly bullish 2021

In the previous year, the total sales value of electronics and household appliances amounted to 2.65 billion euros, up from 2.13 billion in 2020 and 2.17 billion in 2019. In 2021, all market sectors were positive and even strongly upward. It is noted that during 2021 the home became the focus of every activity, which boosted regional IT products many employees worked from home. But at the same time, the trend of cooking at home strengthened, both as a daily necessity and as a form of entertainment.

This has for example resulted in increased sales for bakers. At the same time, a very large portion of the world was consuming coffee at home mainly during the lockdowns, spending money to get better coffee machines. Also, to be able to entertain at home, consumers last year spent a lot of money on televisions, video consoles and peripherals.

At +7% GDP in the first quarter

In terms of factors affecting the consumption picture, looking at the broader macroeconomic environment, GDP continues to be positive with +7% (€47.2 billion) compared to the first quarter of 2021, a period during which the GDP growth rate was 8.3%. As far as the reduction of unemployment is concerned, it is recorded in the positive data that affect the course of the economy, as we will recall that the relative rate fell to 12.5% ​​last April, from 12.6% in March 2022 and 17.2 % in April 2021.

Tourism is expected to make a positive contribution to the further reduction of unemployment. At the same time, construction activity continues to grow, which favors small and large household appliances as well as air conditioning products. We remind you that in the quarter January – March 2022, the total construction activity showed a 6.7% increase in the number of building permits, a 2.9% increase in surface area and a 7.1% increase in volume, in Greece as a whole compared to the corresponding quarter of 2021 according to ELSTAT data.

Decrease in consumer confidence

However, the decline in consumer confidence is recorded on the downside during the period, with the relevant index being affected by the energy crisis and the war in Ukraine. The economic climate index in Greece stood at 104.3 points in June, from 108 points in May, based on the latest data from the IOBE economic situation survey.