Slight decrease in the Western European TCG market

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In the first quarter of 2017, the Western European technical consumer goods market shrank by 1.5%, compared to the same quarter in 2016 mainly due to the GBP/EUR exchange rate. The small domestic appliances market grew by 0.8%, the Photo market witnessed a slight increase of 0.4% and the telecommunications stagnated. The TCG market in Western Europe generated revenue of 50.8 billion euro in Q1 2017. Here are the performances of the different product categories, as reported by GfK Temax.

WESTERN EUROPE: TECHNICAL CONSUMER GOODS
(SALES VALUE AND TREND)

 Q1 2017
M. EUR
Q1 2017 vs
Q1 2016
GfK TEMAX® Western Europe50,848-1.5%
Consumer Electronics (CE)6,698-6.7%
Photography (PH)1,1230.4%
Major Domestic Appliances (MDA)8,282-0.1%
Small Domestic Appliances (SDA)4,4280.8%
Information Technology (IT)13,456-1.7%
Telecommunications (TC)12,421-0.0%
Office Equipment & Consumables (OE)4,441-1.9%

Major Domestic Appliances
Most of the Western European countries achieved a value growth in the first quarter of 2017 and, in particular, the built-in segment saw healthy sales development. Innovative segments, like hobs with flex induction or tumble-dryers with heat pump, are the biggest drivers of the growth. On the other hand, the Finnish, French, Swedish and Danish markets registered a single-digit decline. Considering the various appliances, the freestanding devices had negative growth in the first quarter. Freezers achieved a similar trend to the previous quarter and refrigerators experienced a lack of demand.

Small Domestic Appliances
The Belgian and Spanish markets had the highest growth in the first quarter. Handstick vacuum cleaners saw an ongoing growth driven by the success of the cordless models, and the full-automatic coffee machines registered a growth coming from all price segments. Besides, the electrical toothbrush reinforced the positive market dynamics. However, the Scandinavian markets shrank and the kitchen machines, after the strong growth in the recent past, now decline significantly. Also the liquidizer have seen a massive increase but now the growth is declining mainly for the negative trend in Great Britain and Germany.

Consumer Electronics
German, Finnish and Swedish markets are growing. Due to the trading up for flat TVs in Europe, consumers spent more money for TVs above 1,300 euro. Audio segment was still on the growth path driven by the internet connectivity and bluetooth. On the other side, Great Britain had negative performances due to the reluctant consumer demand in CE.

Photography
The market of cameras achieved a stable result in value terms in Europe compared to the previous year: especially the Dutch, Greek and Finnish markets grew significantly. The value growth triggered by the average price increase. On the other hand, the sold units volume decreased by double-digit and this trend affected also the lenses and all other accessories segments.

Information Technology
The Belgian market achieved the highest growth with +4.3%. Gaming computer models showed a strong and persistent two-digit growth in Q1 2017, despite the general market trend in computing.
Greek market registered a double-digit decline and the market for mobile & desk computing continued to decrease with a single-digit rate in Q1 2017.

Telecommunications
In the first quarter of 2017, there was a positive development in most markets, included Germany, France, Benelux and UK. Despite a saturated market, demand for smartphones is stable and the average price is increasing. The positive trend in wearables offset the decline in the traditional markets such as phone devices and fax machines.

Office Equipment and Consumables
The Western European markets reached mixed results in the first quarter of 2017. Laser MFD color technology continued to grow. Overall, Austria, Belgium, Denmark, Finland and Spain succeeded a positive result in Q1 2017. On the other side, a considerable drop was registered in Sweden and UK. Germany, France, Italy and The Netherlands lost from 2% to 5%. Consumables lost 8% compared the first quarter last year.

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