“The situation on the household appliances market has gradually improved only in recent months

“The situation on the household appliances market has gradually improved only in recent months "

access_time2019-11-14 13:23:45

Almost 11 months have passed since  lending regulations came into force in Georgia, which sharply limited consumer lending. The household appliances companies turned out to be the most sensitive to the norm - in the first months the sales fell by 50%, then grew slightly, now the sales are  declining by 15-20% compared to 2018 .

The situation in the sector has worsened compared to last year, but compared with the beginning of 2019, on the contrary, has improved.

As they sat at Technoboom electronics chain, the regulations were correct but they had to be introduced in stages, so that neither consumers nor retail chains would suffer.

“Most likely, starting  2020 the situation will stabilize  and we will completely overcome the negative effect of regulations. It’s worth mentioning that the national currency’s collapse also negatively affects sales,” Anzor Kokoladze, founder of the Technoboom chain, says. 

According to Kokoladze, to minimize losses, the company offered  new services such as free delivery of purchased goods, activation of online sales, etc.

“We started wholesale sales to Armenia and Azerbaijan. But alone we will not  be able to significantly change the situation. A lot depends on the dynamics of the market, on the rate of economic growth, on the exchange rate of the national currency. When buyers do not have money, this affects all companies, ” the Technoboom founder explains.

According to  Beko,  to reduce the loss caused by  the regulations, the company had to open 4 new stores.

“The law entered into force very quickly. This year has been very difficult for our business - regulations, devaluation of the national currency, difficult social background - all this has  affected our sales,” Mehmed Melek, the company general director Mehmed Melek, stresses.

Melek adds that the situation has gradually improved only in recent months.


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