Market recovery in August 2024

After a difficult start to the year marked by a severe contraction in sales due to the challenging macroeconomic context, the home appliance market began to show signs of recovery starting in May. In August 2024, for the first time, a positive variation was observed compared to the same month of the previous year, with a 3.7% increase in sales.

The cumulative analysis from January to August 2024 (YTD 2024) reflects a 26% drop compared to the same period last year, a significant improvement over the initial 39% decline seen in the first quarter of the year.

Dynamics by Category

The market recovery is driven by new financing conditions, which have had a favorable impact. Categories with a high incidence of national manufacturing, such as white goods and air conditioning, have shown above-average performance. Air conditioning, in particular, benefited from the intensity of the winter season, boosting sales of hot water tanks and heating systems.

On the other hand, the improvement in supply and assortment has favored categories such as small appliances and IT products; while, the lower supply has more significantly affected the cell phone market.

Electrofans: A Key Impulse

The Electrofans event, held in mid-September 2024, has been an additional boost to the market recovery trend. Although the monthly data for September is not yet closed, a positive dynamic can be inferred from the results of the event. Sales during the Electrofans week showed a growth of 25% compared to the previous week.

Price stability, the reappearance of fixed installments and improvements in financing costs have been key factors in improving consumption in the sector.

"The home appliance market in Argentina has gone through a challenging period, but recent data shows us clear signs of recovery. As of August, we observed positive growth in sales compared to the previous year, driven mainly by the reactivation of financing conditions and price stability. Events such as Electrofans continue to be important to boost consumption, providing accessible options and better purchasing conditions, highlights Daniela Martinez, Head CSM Tech&Durables Argentina para GfK (NielsenIQ).