TURKISH White Goods Industrialists Association (TURKBESD) held an evaluation meeting for the first quarter of 2024. TÜRKBESD President Gökhan Sığa stated that there will be an increase in the prices of white goods as inflation increases, and said, “Inflation is still high. We follow the depreciation of the Turkish currency and the exchange rate. Unfortunately, both of these show that the prices will continue to increase. Those who need it should buy their products as soon as possible.” “Because they may experience a decrease in the number of installments in the future or the installments may become more costly,” he said..
According to TÜRKBESD data, while sales of white goods in the domestic market increased, the decline in exports continued. TÜRKBESD President Gökhan Sığın said, “Practices such as reducing the number of credit card installments and increasing loan interest and commission rates, which have been on the agenda recently, pose a risk for the domestic market.”
‘CREDIT CARD DECISIONS CREATE RISKS’
Speaking at the meeting where the first quarter performance of the sector and the outlook for the coming period were evaluated, Turkish White Goods Manufacturers Association (TÜRKBESD) President Gökhan Sığı said, “The main reason for the decline in exports was the contraction in global markets. On the other hand, we continue to maintain our production and employment levels with what we buy from the domestic market. At this point, “It is of great importance to maintain the vitality of the domestic market,” he said and added:
“This is only possible if our consumers have the purchasing power of white goods, which are a basic need. Recent practices such as reducing the number of credit card installments and increasing loan interest and commission rates pose a risk for the domestic market.”
“ELIMINATE THE INSTALLMENT MAY DIRECT CONSUMERS TO MAKE MORE INFICIENT CHOICES”
Evaluating the reflections of the banks’ reduction in the number of installments on the sector, Sığa said, “When you look at it from a purchasing perspective, the initial expenses represent a significant part of the household’s expenditure. Therefore, purchasing such large expenditures and products that serve the household for such a long time with better installment numbers is, of course, for the consumer.” It is both meaningful, logical and supportive. At the same time, in modern life, having a refrigerator, washing machine, dishwasher and oven in your home is not a luxury, but a necessity. Energy consumption and its replacement is a very natural need of the household.
Therefore, the installment here causes the consumer to act more rationally when making this renewal and to choose more efficient, better products, both technologically and in terms of energetic resource efficiency. Eliminating installments may lead consumers to make more inefficient choices in this regard. Because let me give an example: There is a 50 percent difference in terms of installment sizes between purchasing a product in 9 installments and 6 installments. “This is a huge difference, it will seriously affect the household,” he said..
“IT SHOWS THAT PRICES WILL CONTINUE TO INCREASE”
Stating that it is natural for there to be activity in the white goods industry as the wedding season approaches, Gökhan Sığın stated that they expect the prices of white goods to increase in the coming days due to the increase in inflation. Sığa said, “Inflation is still high. We follow the depreciation of the Turkish currency and the exchange rate. Unfortunately, both of these show that prices will continue to increase for a while, even if not as fast as before. Those who need it should buy the products as soon as possible. Because in the future, both the number of installments They may experience decreases or installments may become more costly. Of course, price increases may continue to occur because the prices of materials, especially iron and steel and petroleum derivatives, that constitute a significant purchasing volume are in foreign currencies in international markets.
The depreciation of the Turkish currency becomes a direct cost here. If they want to protect themselves from these, they should not delay their needs. The financial boards’ expectations for the year-end exchange rates and the year’s average exchange rates are above our current level. Therefore, this shows that the costs will increase over time, at least for many of our foreign-cost materials. On the other hand, I also talked about the number of installments. So currently, a very limited number of banks only make 9 installments. We observe that many do not do it. This is a fact that already increases unit payments. When we put these two together, they should meet their needs as soon as possible, as I said, these are necessity products. “No one buys the second refrigerator or the second washing machine in the house,” he said..
