No Impending Rise in Prices of Home Appliances

EghtesadOnline: Dismissing rumors of an imminent rise in the prices of home appliances, Chairman of Iran’s Home Appliances Association Mohammad Tahanpour said high rents and increased production costs have prompted retailers and manufacturers of home appliances to spread such fabrications and create a tense atmosphere in the market.

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24 July 2017

Tahanpour stressed that there is no recession in the home appliance sector, but the growth of online trading and people’s doubts over purchasing products of inferior quality have hit the traditional businesses, Jahan-e Sanat daily reported.

“High-quality foreign household devices poured into the country following the lifting of nuclear sanctions against Iran. Some popular local brands also saw a significant rise in their production, managed to supply products and offer replacement warranties and other after-sales services. Brands that fail to lay out an accurate roadmap about market needs and level of consumption, and refuse to reevaluate the diversity and quality of their products as well as their after-sales services will be automatically eliminated by the market,” he said.

Noting that a large number of manufacturing factories in the country are churning out stoves, refrigerators and products of basic technology regardless of market needs, Tahanpour said these manufacturing units are doomed to go bankrupt in a couple of years, according to Financial Tribune.

“This comes as household devices of advanced technology such as television are mostly supplied via imports. The whole thing will throw local production into a serious crisis,” he said.

A report released by the Ministry of Industries, Mining and Trade in April showed domestic production of home appliances witnessed an increase in the 11 months to January 2017, compared with the previous year’s corresponding period.

During the period under review, the production of flat TVs rose by 9.9%, refrigerators and freezers by 21.7%, washing machines by 61.5% and evaporative coolers by 5.4% year-on-year, IRNA reported.

The home appliance market in Iran is worth 200 trillion rials (over $5.33 billion). Domestic production accounts for only a quarter of this sum and the rest is dominated by foreign brands, the Home Appliances Association announced.