Tech goods market drops 8.3% in Q2: GfK
September 1, 2014, 12:03 am TWN
TAIPEI--The technical consumer goods market remained in a downward trend during the second quarter of 2014, despite growth in three sectors, according to German market research and advisory firm GfK Group.
In a research report published Aug. 29, GfK said the technical consumer goods market in Taiwan generated a total sales volume of NT$47.95 billion (US$1.6 billion) in the April-June quarter, down 8.3 percent compared to the same period in 2013.
Despite the decline in the overall market, there were three sectors — the small domestic appliances, major domestic appliances and office equipment and consumables — which reported an expansion in the most recent quarter, the report said.
"This growth was mainly related to home appliances, which seems to imply that consumers are eager to improve their quality of life and their lifestyle. Thus, the small domestic appliances sector presents a significant increasing trend," said Cindy Li, GfK's managing director in Taiwan.
GfK's data showed that the small domestic appliances sector reported robust growth of 19.3 percent year-on-year in the second quarter, while the major domestic appliances sector also achieved marginal growth of 5.2 percent and the office equipment and consumables sector grew 3.1 percent.
But this growth appeared insufficient to offset declines in other major sectors.
Sales in Taiwan's consumer electronics, for example, fell by 6.8 percent year-on-year to NT$7.6 billion in the quarter ending in June. The information technology sector also dropped by 7.4 percent to NT$14.6 billion, with the telecommunications sector registering a 16.9 percent decrease to NT$12.5 billion, according to GfK.
Looking ahead, Li said, the Taiwan government has announced an adjustment to its gross domestic product (GDP) growth for this year from 2.59 percent to 3.24 percent, with the export index already showing two consecutive quarters of an uptrend.
"Moreover, consumer demand and, indeed, their purchasing power are also showing signs of improvement. Positive performances are expected in some sectors in the third quarter of 2014," she noted.