2019, the year that can recover consumption
GfK study shows that the intention to buy exists, with a more critical and demanding consumer.
2019 is expected to bring a recovery in the consumption of durable goods, according to the study of research company GfK, presented at the event Presidentes, of the Eletrolar Group. The consumer is more confident, but also more critical and demanding. In the survey, 71% of respondents said they “feel more controlled than ever to choose the best products to buy,” and 56% “feel that retailers and brands have less influence than ever in their buying decisions.”
In 2017, the study reveals, 47% of consumers said they intended to buy electro electronics in the next 12 months. In 2018, this percentage rose to 64%. For the purchase of appliances, the number increased from 40% in 2017 to 54% in 2018. The upward bias continues in 2019, but the consumer is more cautious and demanding.
“This may change their buying behavior because they are also more attentive to the economic and political scenario. At the same time, they are willing to improve the standard for more premium products with embedded technology, capacity and features. This is especially clear on smartphones and televisions,” says Fernando Baialuna, director of GfK’s retail unit.
Suppressed demand
For the executive, moments of crisis generate repressed demand and then bring a recovery in consumption. “Today, there are over 70 million homes in Brazil and, compared to 2010, 10 million more Brazilians. However, consumption of durable goods did not grow at the same rate”, he explains. Still, according to the GfK director, the conditions for this recovery are sustained, provided that economic factors such as employment, income, credit, and confidence continue or improve.
On the other hand, some items in the durable goods basket have been stagnating or retracting, as in the case of telephony. In 2017, there was neutrality in the participation of this type of apparatus in the basket of durable goods. In 2018, there was a 2% decrease in its importance compared to the other products in the basket – in this case for electronics, especially televisions in World Cup year. .
The basket of durable goods, considering all the products that compose it, had a positive performance of 6% in revenue, much pulled by electronics, with 16.8% (especially televisions, with 195% high); white line, 7.1%; portable equipment (planetary mixer with 25% growth); IT, 1.9% (gaming with 95% growth); and telephony, 1.2% (dual camera smartphones with 345% growth). “Cellphone sales in units fell, but the search for better handsets, with more technology, bigger screens and, consequently, higher average prices, made the billing rise,” explains Fernando.
Highlight (We can use as caption of his photo)
Fernando Baialuna: “Today, there are over 70 million homes in Brazil and, compared to 2010, 10 million more Brazilians. However, consumption of durable goods did not grow at the same rate.”
Fernando Baialuna, director of GfK’s retail unit
