Electronics sales grow, but bumps into interest – 07/10/2023 – Market

Sales by the electronics industry to Brazilian retailers grew 13% in the first half of this year compared to the same period last year, according to data released by Eletros (an industry association that represents brands such as Samsung, LG and Philips) this Monday- fair (10). More than 44 million units were sold from January to June.

For Jorge Nascimento, chief executive of the entity, the result may be a sign of the recovery of the economy. It is still early, however, to bet on improvement, which will depend on the numbers in the coming months, he says.

“Some sectors are pointing to a fall, but, as our products are for consumption, we are the first to show recovery when the economy improves, just as we are the first to feel it when it starts to fall”, he says.

The replacement of inventories can also explain the increase in sales, according to Nascimento. He claims that the products were accumulated at retail at the end of last year, before dates like Christmas and Mother’s Day.

“We can believe that, in the first two months, there was a replenishment of retail inventory. But we will only know for August or September if this growth is sustainable or if it is more punctual.”

Despite the positive scenario at the beginning of the year, the sector has not yet returned to pre-pandemic levels and has high interest rates as an obstacle. The high shares of larger and more expensive products, such as refrigerators and stoves, can inhibit consumers, he explains.

“Our sector has experienced, in these last 18 months, a strong crisis of consumption retraction. Product had, launch had, but the population did not buy”, he says.

Insecurity is reflected, for example, in white goods. With more timidity, the segment —whose flagships are the refrigerator, the stove and the washing machine— advanced only 4% in the first six months of the year, with around 6.3 million units sold.

Among laptops, growth was 13% compared to the first half of last year. There were almost 31 million products sold from January to June, according to the survey. The highlight this time was the air fryer, which showed an 85% increase in sales compared to 2022.

Also according to the survey, sales of air conditioning grew 16% on the same comparative basis, with 1.48 million units sold. Eletros attributes this performance to the effect of El Niño, a phenomenon characterized by above-average warming in the Pacific Ocean.