Developments in the consumer durables sector
The global white goods market is estimated to have grown by 2.6% to 519 million units in 2017 and its revenue by 3.2% to USD 195 billion. The television market is expected to have grown by 2.5% to 234 million units in the same period with revenues of USD 110 billion.
In Europe, Turkey’s main export market, the white goods market grew by approximately 2.8% year-on-year. Despite challenging market conditions in the UK and Germany, the West European market posted 1.7% growth. Having entered a downturn in the last quarter of 2016, the UK market contracted by around 2% in 2017. Germany, the largest market in the region, maintained its market size during the year while France, Spain and Italy grew above the region average.
In Eastern European, growth was broad based and over 5%. Russia, the largest market in the region, grew by 5.7% while Poland and Romania posted around 4% growth. Ukraine grew by 20%.
The South African white goods market, which exhibited signs of a recovery from the second quarter onwards, expanded by around 5%.
Turkey maintained its position as Europe’s largest white goods manufacturing center.
Record high sales and production were achieved in the domestic white goods market in 2017. After the government temporarily reduced the special consumption tax on white goods from 6.7% to zero at the beginning of the year, the sector entered the new year with buoyant growth. According to figures of the White Goods Manufacturers’ Association, domestic sales grew by 14% annually to 8.5 million units. The TV market contracted by 6% according to retail panel data, while the air conditioning market grew by 3.3% in 2017.
White goods exports increased by 6% annually with a strong performance driven by recovery in Europe and reached a record 20.6 million units. Total production stood at 28.4 million units, marking an expansion of 8% year-on-year.