The Romanian furniture market, an almost 1 billion-euro businessper year, will see a 15-20% decline in 2010. The leading playershad promotional offers, offering zero-interest rate instalments,and extended the offer of accessories in order to keep the salesfrom declining further, writes Business Construct magazine, whichappears this week together with Ziarul Financiar.
The second year of business decline appears to have broughtmanagers in furniture retail to life, with campaigns being for thefirst time echoed on the market.
Managers were forced to come up with solutions after the VAT hikein the summer dealt a blow to the economy, with sales in theindustry already being affected. In the absence of aggressivepromotional campaigns and of new projects, the year 2010 could havebeen disastrous for the furniture market.
The 15-20% decline was significant, but it was to be expected. Mostplayers expected this decline at the beginning of the year,although there were also those who dared to hope for a slightrebound in the second half of 2010.
"We thought the first few months of 2010 would be bad, and thengood times would come, but there came the VAT hike, which upset allforecasts. Without a major change in the way of doing business andwithout aiding consumption, which should come either from arenegotiation with the bank or from a VAT cut, I don't see anyreason why 2011 should be better," believes Dan Şucu, owner ofMobexpert, the biggest player on the furniture market (productionand retail).
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