What do Bulgarian consumers buy over the past year?

published on 8/18/11 11:37 AM

Photo: BGNES

Data from the National Statistical Institute shows that retail trade in June has seen a drop compared to the previous month. At the same time, there are products that, despite the economic crisis, preserve their growing sales. Could we assume that this is a tentative sign of a resuscitation of the interior market and probably the approaching end of the economic crisis? Statistical data shows that retail trade in general has diminished on a monthly and yearly basis. The constantly shrinking consumption that accounts to the largest extent for the Gross Domestic Product shows that Bulgarians have not regained their optimistic outlook. They do not afford to spend more because in their opinion the economic crisis is still here and now.

The first half of the year has seen a drop in the purchases of goods that people buy when they do not fear about their incomes and jobs. The sales of clothes, shoes and other textile products have dropped by 2.5 per cent on a yearly basis. The sales of furniture and household appliances have dropped by 4.5 per cent. The fuel consumption has also shrunk compared to June last year. The most serious increase in sales is seen in the pharmaceutical industry, with a rise of 4.3 per cent. In times of crisis when households spend on things that they cannot go without such as food and drugs and buy less of other goods, high-tech products turn out to be the winning joker. Despite the improverishment caused by the economic crisis, there are certain products that Bulgarians continue purchasing, and these are mainly computers and mobile phones. Their sales are on the rise despite the frozen incomes and inflation. Within a year only, from June 2010, their sales have increased by 2.7 per cent. Over the past few years, the trade with these products is on the rise. Experts from the sector claim that this is due mainly to the sales of portable notebooks and smart phones. According to Georgi Stoev from Industry Watch, the reason lies in the increased technical literacy of people and the leading role of electronic communications nowadays. The rise in sales of laptops and cellular phones is also a kind of investment in small-sized enterprises but in the majority of cases it shows the desire of consumers to replace their old equipment with new one. Large trade chains believe that people are constantly seeking more and more modern appliances. That is why the rise in sales of laptops and tablets is measured in two-digit figures. And the diminishing prices of mobile phones make customers choose smart phones. This market sector was the first to be hit by the economic crisis and it is now recovering. Can we talk about resuscitation in the interior market in Bulgaria based on these figures?
“First, what we monitor as the leading indicator of whether people spend more are the purchases of automobile and the costs for home repairs, Georgi Stoev from Industry Watch explains. People consume more when they feel more secure about their work and their incomes. As regards computers and mobile phones, these products are not within our focus mainly because these are quite dynamic products on the market. New products come out on the market all the time, the prices of older models fall, and their Internet access and 3G network services are quite serious. So once mobile operators offer a better access to mobile Internet, the interest to these devices will enhance. But we are using this market as an indicator for the reinvigoration of the interior market as a whole”, Georgi Stoev from Industry Watch told Radio Bulgaria.

Translated by: Rossitsa Petcova

По публикацията работи: Milka Dimitrova

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What do Bulgarian consumers buy over the past year?

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