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