Best quarter in four years for Romania's increasing technical consumer goods market

The technical consumer goods (TCG) market in Romania grew by 7.9 percent in the first quarter of 2014 (Q1), compared to the same quarter of 2013, to EUR 386 million, with the telecommunication sector as its main driver, according to GfK Romania Market Research Institute. In terms of value, Q1 2014 was the best first quarter in the last 4 years for the consumer market goods in Romania. The telecommunication sector grew by a third in Q1 2014 compared to Q1 2013 and reached EUR 117 million in value, which makes it the largest sector this quarter. “The smartphones segment still registered considerable double-digit growth while mobile phones lost even more ground. The products which contributed the most to the increase in value of the Telecom sector were those with 3G and even 4G connectivity, a minimum 5megapixel photo camera and a large display size (greater than four inches),” GfK data shows. The first quarter of 2014 saw a total market increase of 10.9 percent for the major domestic appliances sector. The double-digit increase rates for categories such as built-in appliances, cooling, freezers and washing machines helped to lift the overall sector performance to a total of € 65 million. For the first quarter of 2014, frost free refrigerators and the greater than 7kg front-loading washing machines were the main value drivers within these two market segments. The small domestic appliances sector increased by 7.9 percent compared to Q1 2013, to a total of EUR 26 million. Hair clippers and shavers were the main growth drivers on the personal care segment. The first quarter of 2014 also brought an increase of 3.9 percent in the consumer electronics sector. Total sales reached a value of EUR 61 million. Inside the electronics sector, panel TVs and video game consoles showed positive evolutions. There were also some sectors that didn’t go so well. For example, the IT sector had a decrease of 6.2 percent, to EUR 97 million, compared to Q1 2013. “The most important decrease was registered by the mobile computing market, followed by those for desk computing, pointing devices and web cameras. In the mobile computing sector, only computing tablets and desktop replacement recorded growth but, due to their small share within the total, didn’t do enough to counterbalance the decrease in the entire sector,” GfK explains. Sales of printers and consumables registered a decrease of 8 percent in Q1 2014 compared to the same period in the previous year, reaching EUR 14 million. Also, the photographic equipment market continued its decline, which had already started in 2013. The market reached EUR 5 million in Q1 2014, which is 40 percent less than in Q1 2013. Find the report here. Andrei Chirileasa, andrei@romania-insider.com