Pakistan Real Estate Times - Pakistan Property News

Sale of TV sets has been slow since their prices have increased sharply in the last one year. - Reuters/File photo.

KARACHI: After a major slump in sales during July-Jan 2008-09, consumers’ sentiments in domestic appliances market have revived moderately.

Dealers in Saddar area said that the buyers’ turnout in the market has improved since early this month with the start of the summer season. They are visiting markets to buy refrigerators, deep freezers and split air-conditioners. Besides, there is an increase in marriage ceremonies in the month of Rabi-ul-Awwal. This has also boosted sales as families try to include electronic items in the dowry package.

Dealers said that the sale of TV sets has been slow since their prices have increased sharply in the last one year. A leading fridge’ has reduced its rate, saying the company is now using simple sheets and it has also reduced the number of shelves in their fridge besides removing locking system to bring the cost down accordingly.

According to the figures of Federal Bureau of Statistics (FBS), production of refrigerators in July-Jan 2008-09 stood at 451,775 units as compared to 485,703 units in the same period last year.

Production of deep freezers in July-Jan this year plunged to 64,405 units as compared to 82,254 units in the corresponding period last year.

Similarly, production of air-conditioners during the period under review went down to 96,685 units from 115,741 units earlier.

Sale of TV sets fell sharply to 250,744 units from 406,236 units in the last seven months of previous fiscal year.

A Lahore-based TV manufacturer, who asked not to be named, gave a different picture in terms of TV sales. He claimed that consumers had returned to the markets after some political stability in view of restoration of judges and stability in the exchange rate.

He said in the last over one year, the price of TV sets has increased by 25-30 per cent due to devaluation of rupee against dollar mainly. However, the TV manufacturers had not yet passed on the full impact of around 43 per cent increase due to one per cent sales tax, 10 per cent hike in raw material prices, three to four per cent rise in mark up rates and 25-30 per cent devaluation of rupee.

He added that the main reason of low sale of TV sets can be attributed to shrinking buying power of consumers in the last one year.

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