Electricity purchasing power in the country is the lowest in the past 20 years

DNHN - Even though electronics centers and supermarkets continually launch numerous discount and promotional programs for all product categories, it is difficult to stimulate demand during economic downturns when consumers tighten their purse strings.

Among the product groups sold at centers and electronics supermarkets in Ho Chi Minh City, television products have the most significant decline in purchasing power, according to the information gathered. Consequently, in the first months of this year, television consumption decreased by 40% to 50% compared to the same period in 2022, resulting in a precipitous decline in the selling price of this item by 30% to 40% compared to the final months of 2022. A series of additional electrical and electronic products decreased purchasing power by approximately 30% and sales prices by 20%-30%.

According to the sales manager of an electronics supermarket in Ho Chi Minh City's Tan Binh district, the sluggish business climate has pushed the inventory of electronics products beyond the normal range of one to two weeks of sales. 5-6 months of sales growth. To stimulate demand, retailers accept "double" losses, i.e. losses on product prices and other operating expenses, as well as "double" losses on the bottom line for many items.

In addition, the proportion of customers purchasing electronic products via installment payment has decreased dramatically from 30% to 40% to less than 10%. The reason is high bank interest rates, forcing consumers to consider their monthly repayment capacity more carefully. In addition, many installment buyers can no longer make payments, become customers with bad debts, and are subsequently ineligible for additional consumer loans.

According to the assessment that the purchasing power of electronics has fallen to its lowest level ever, retailers of electronics will need to continue lowering product prices until the end of the year and possibly into next year to sell their products. Products.

In prior years, manufacturers continually introduced new products with numerous technologies to encourage consumers to shop. Meanwhile, the market has not seen any new products with outstanding technology and features to attract a group of conditional consumers since the previous year. In addition, many retailers and electronics manufacturers anticipated that purchasing power would increase significantly after the COVID-19 pandemic, so they stocked up on large quantities of supplies. However, not only did purchasing power not increase, but it began to decrease dramatically.

Some retailers and manufacturers believe it is unlikely that the market will recover this year because there have been no indications of improved purchasing power. This is because the difficult economic climate prevents consumers from purchasing even essential household electrical products. In addition, the gloomy real estate market and lack of liquidity significantly reduced the purchasing power of electronics.

Ngoc Phi (TH)