Brazil: strong decrease in the household appliance sales

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According to GfK Temax, the Brazilian technical consumer goods market experienced a large fall in the fourth quarter of 2015, compared to the same period in 2014. All sectors reported declines, but small domestic appliances and office equipment and consumables sectors registered the smallest falls (down by 2.5% and 5.6%, respectively).

Small domestic appliances
In the last quarter of 2015, the SDA sector recorded a decrease of 7.2% in sales volume, and 2.5% in revenues, compared to the same period in 2014. This was due to a 6.5% increase in average prices. This slight decline in the market was influenced by the growth of certain categories such as electric fans, deep fryers, and espresso machines, which went against the trend in the sector. However, other products including food preparation equipment, irons, sandwich makers, and vacuum cleaners all registered falls.

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Major domestic appliances
Sales of white goods fell by 20% in the fourth quarter of 2015, compared with the same period of 2014. All categories decreased, but cooling products (down by 25%), and cooking equipment (down by 21%) were primarily responsible for the negative trend.

Telecommunications
Revenue in the Brazilian telecommunications market decreased by 15% in Q4 2015, compared to the last quarter of 2014, but grew by 20%, compared to Q3 2015. Smartphones remained as the main segment in the sector, but also reported a negative result – down by 13%, compared to the last quarter of 2014. Black Friday was very important for smartphones, but the Christmas season was the weakest since 2013. A number of factors contributed to this, including rises in taxation and currency fluctuations (which impacted prices).

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Office equipment and consumables
The OE sector ended the fourth quarter of 2015 with a decrease in revenue, compared to the same period of the previous year. In the multifunctional devices (MFD) segment, inkjet products improved their performance, compared to the same period in 2014, and accounted for almost half of the revenue in the sector. Sales of inkjet printers remained stable. However, printers, and MFDs based on laser printing, both registered declines. Revenue for computer peripherals – keying devices, pointing devices, and presenters – remained stable in the last quarter of 2015, compared to the same period in 2014.

Consumer electronics
In the Consumer electronics sector, the last quarter of 2015 saw a fall in revenue of 23%, compared to the same period in 2014. The categories that were affected most by this decline were Panel TVs, and home audio systems. On the other hand, Bluetooth speakers registered growth, compared to Q4 2014. This segment was boosted by average price reductions due to changes in the product mix, following the introduction of entry-level items and an increase in the number of brands.

Information Technology
Following the general pattern seen in 2015, results in the last quarter of 2015 (with further falls reported) were not surprising. The year ended with a negative revenue trend for the Information Technology market. Portable computers were the main reason for the fall in revenue. The desktop computers and screens segments also followed the trend seen throughout 2015 and ended the year 40% smaller.

Photography
The Brazilian photography sector declined by 71% (in value terms) in Q4 2015, compared to the same period in 2014. Sales of all digital cameras fell. However, interchangeable-lens cameras (with a smaller decline) gained market share, and accounted for almost 35% of the value sales, compared to 24% for the same period in 2014.

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