They bet not only the consumers are enjoying a lot the discounts. A research found that almost 30% or the Romanians from the urban area will go shopping on Black Friday, and they would like to see as many discounts as possible for home electrical appliance - white goods (28%), mobile phones (18%), TV sets (18%) and laptops / notebooks (10%). The appetite for the latest fancy gadgets could be seen as natural, but do not be surprised by the propensity for the so-called white goods.
Black is good for white (goods)…
And this is not because we are seeing new customers moving into new homes: after all, we have just stepped down from a crisis, and people are still reluctant to contract a new loan. But another natural phenomenon has occurred - people are replacing their sets bought years ago. As Dan Ostahie, CEO of Altex, the most important retailer in electro-IT, noted in an interview for a local business publication, the consumption increased by 10% in 2014, first time at that pace after 2008. But the market will not see figures like this soon, at least not until the real estate sector starts its rally.
Until then, both consumers and retailers are enjoying the season. Unfortunately, there are not so many local producers in this equation, with a notable exception - Arctic Gaesti, the well-known refrigerator producer, member of the Arcelik, a Turkish group.
In 2014, Arctic became the biggest producer in Europe, with 2.6 million units per year, as stated by Hasan Ali Yardimci, the new CEO. The former CEO, Monica Iavorschi, left the company in October and is now the marketing director of the Arcelik group.
The company opened a new line of production in Gaesti at the end of 2013, after an investment of EUR 24 million, of which EUR 10 million state aid. The investment will generate 570 new jobs in the period 2013-2018 and will boost the exports, which now generate 80% from the revenues.
Arctic is by far the biggest player on the local market of white goods, with a market share of 35%, according to the company’s reports.
A bright time for developing…business
Besides Arctic, there are not many local producers of electric & electronic equipments which satisfy the local consumers’ need for modernization and efficiency.
A surprising example has come from Electromagnetica Bucuresti, known in time for making industrial products for electricity meters or power distribution. This year, came to light the new strategy of this company owned by the Association of employees and the Financial Investment Company SIF Oltenia - to take the lion share on one of the most promising market, that of modern lighting based on LED (light emitting diodes) solutions. It is not hard to see the huge potential for a product which addressed a real need of consumers of all sizes - to reduce the electricity bill! And they started with the first consumers to be interested in this issue - the local authorities. The first results could already be seen in small and big cities; even in Bucharest, large boulevards are brighter and cheaper lightened with Elecromagnetica solutions.
At the end of the year, the biggest company in Romania, OMV Petrom, announced it has replaced conventional lighting systems in 345 filling stations with Electromagnetica’s LED system, following an investment of EUR 2.1 million which reduced the electricity consumption by 50%. More industrial and commercial buildings have chosen the new lighting solution, and this is just the beginning, considering the fact there are special European funds available for energy efficiency.
In October 2014, at the third edition of the Lumina LED Symposium organized by Electromagnetica, the CEO, Eugen Scheusan, announced an investment program of EUR 1 million for 2015 for the purchase of new equipment, but also for the development of the sales force. From a strategic perspective, they will focus on two areas: public lighting and export. Currently, public lighting segment revenues represent approximately 20% of the turnover of the company in the field of LED lighting, which this year will accumulate over EUR 6 million. The total turnover for 2014 is estimated around EUR 100 million.
Still in power
Another prestigious Romanian producer is thinking of starting a business with commercial lighting - Elba Timisoara, which is developing its ability to design the lighting.
But Elba is lucky enough to maintain and develop its core business and now, after 45 years, is still the supplier of lighting system of all Romanian automotive industry.
Automotive is also the big customer of other local producers, especially new foreign investments in electrical cables and wires, like Coficab or Leoni.
Generally speaking, the industry of electric & electronic equipment is still in power, some of the companies managing to maintain even a component of added value through original products. A good example could be AEM Timisoara, with its electronic heat cost allocators for thermal energy, or the patented solution of integrated systems for the reading of thermal energy meters.
Finally, maybe the local industry is not well equipped to meet, let us say, the demand for Black Friday shopping, but it is still prepared for what the market will always need - traditional products like lighting devices, cables, energy meters, or measuring instrument.
