The local retail market of home appliances, electronics and IT&C products keeps at a low level compared with other countries in the region, but it starts having a seasonal character, like in Western and Central Europe. Seasonal peak sales, in Dec., in particular, rise in parallel with the drop in summer.
With incomes increasing, Romanians start changing their consumption habits, they schedule expenses depending on seasons and holidays, Christmas and Easter are becoming more and more important, said Jiri Rizek, CEO Flamingo International, one of the most important retailers in the domestic relevant market. According to him, the sales in Dec. account in Romania for less than 20 percent of the sales in the entire year, compared with 25 percent in Eastern Europe and 40 percent in Western Europe.
Analysts believe that the new forms of payment, by card, for example, will lead to a rise in consumption, and, implicitly, in the retail market of home appliances. The penetration of cards, much lower than in Central Europe, will double in the next two years, and cash and credit payments will diminish.
The value of the domestic market is hard to estimate, change is rapid there. Rizek puts it at more than one billion euros, a modest level compared with the Czech Republic or Hungary, considering the number of the population and the average income per capita. For 2010, experts count on at least 1.5 billion euros.
The arrival of international players is expected for the coming years, after the market gets stabilized.