Price erosion hits electrical sales in Europe
Consumers in Western Europe spent Â€45bn on technical goods in the first quarter of 2009, a decrease of 8 per cent on the same period in 2008. But price erosion and currency changes, rather than a lack of demand, were behind much of the fall according to market research expert Gfk.
The findings come from Gfk TEMAX Western Europe, an index for technical consumer goods covering 15countries. It shows that small domestic appliances suffered the smallest drop in value sales, dropping 2.4 per cent because of depreciation of non-euro currencies against the euro.
In total consumers spent €3.2bn on small domestic products in the first quarter of 2009, with a trend towards products for making hot drinks or preparing food as 'cocooning' behaviour kept them at home more during the downturn.
Other sectors, such as large domestic appliances, suffered from a drop in the number of new homes being built. Within Europe the sales falls vary from country to country with Spain and Portugal, which have been centres of growth for five years, seeing the biggest falls in sales.
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