Sales of summer appliances down by 60 percent

[Naveed Yaseen]

By Tanveer Sher
KARACHI: Sales of electrical appliances, deep freezers and refrigerators have recorded a decline of up to 60 percent during April 15 to May 15, 2009 on account of levying of regulatory duty and inflationary conditions, importers and traders said Saturday.
“Deep freezers sales witnessed a decline of around 70 percent while sale of refrigerators registered a fell of around 50 percent during the said period as compared to the same period last year,” said a senior member Karachi Electronics Dealers Association (KEDA) Arshad Saeed.
The average price of an air conditioner surged by Rs 3,000 to Rs 4,000, fridge rose around Rs 4,000 to 6,500 while deep freezer has registered a rise of Rs 3,000 to Rs 5,500 after duties and taxation, they added.
He said on the occasion, the makers of refrigerators and deep freezers announced schemes for promotion of sales, besides traders also curtailed their margins by around 5 percent.
However, despite cut in profits, the buyers appear disinclined to make purchase and only those who are in dire need and can afford higher prices are buying products.
He said buyers due to higher prices, have shun the purchase of these items during this summer and only those who wanted to change their old machines or buy new ones for their dear and near for wedding made purchases.
Saeed said Chinese and Taiwan-made products were in demand this time, but they would not be able to grab more than 15 percent of the market share, as there was no warranty and non-availability of after sale service for such products.
“People prefer locally-manufactured refrigerators, deep freezers and air conditioners as the local companies guarantee after sale service and their products accompany warranty for a certain period,” he said.
“We are making better quality products. That is why the demand for foreign brands is falling day by day,” said
He said the amount that the traders earned during summer season was equivalent to 50 percent of their whole year’s sale.
In yesteryears, the sale of majority of electronic items remains frenzied and we keep our shops open even for later night hours, he added.
Sales Manager at Taj Traders Nizamuddin said their business was to provide deep freezers and refrigerators. “Around 35 percent of the demand comes from the customers who want to change their old products, while the rest comes from first time purchasers of deep freezers,” he said.
Muhammad Abrar, a refrigerator and deep freezer engineer said the demand for servicing refrigerators and freezers increased in these days. “It increases by around 35 percent as compared to the normal days because the people’s purchasing power of new products has weakened.”

http://www.dailytimes.com.pk/default.asp...2009_pg5_7