Developments in the consumer durables sector
The global white goods market is estimated to have grown by 1.5% to 535 million units in 2018 and by 8% to USD 213 billion revenues. The television market is expected to have grown by 2.7% to 240 million units in the same period with revenues of USD 113 billion.
In Europe, Turkey’s main export market, the white goods market grew approximately 1% annually. The Western European market suffered a decline of approximately 1% due to contraction in UK, Germany, France and Italy. The UK market contracted by around 3% on the back of ongoing uncertainty over Brexit, while Germany, the largest market in the region, experienced a contraction of more than 2%.
In contrast with the Western Europe, the Eastern European market performed strongly in 2018, achieving almost 8% growth. Russia, the largest market in the region, attained 10% growth, while Poland, the second largest market, grew by more than 4%. Romania’s white goods market expanded by about 2% and the growth in Ukraine reached 13%.
The South African white goods market also grew by about 5% despite slowdown in the second half of the year.
Turkey maintained its position as Europe’s largest white goods manufacturing center.
In 2018, domestic sales stood at 7.1 million units in the Turkish white goods market, implying an annual decline of 17%. The contraction in the market was a result of exchange rate volatility especially in the third quarter of the year, rising inflation as well as high base impact the special consumption tax (SCT) incentive that was implemented in 2017. In order to support the sector, the government brought back the SCT incentive on 31 October 2018, which slowed down the pace of contraction in the sector in the last two months of the year.
In Turkey, Europe’s largest manufacturing base, the contraction in white goods sector was offset by strong export performance. Thanks to 7% growth in export volumes, total production remained stable compared to the previous year at 28.5 million units.
According to the retail panel data, the TV market and the air conditioning market contracted by 10% and 14%, respectively in unit terms.