Avalanche of discounts to move consumption
Consumption in general is under constant bombardment of offers and promotions. Due to the contraction of sales and the increase in credit, businesses and businesses in various sectors (automobiles, motorcycles, clothing, footwear, electronics and mass products, among others) are pushing for heavy down payments for cash payments to liquidate stocks. The car dealerships, for example, apply discounts of between 10 and 16% on average, which intersect with the offers of the terminals in some specific models, which may represent a decrease of 35% with respect to the list price.
The large supermarket chains reissue classics to attract customers, such as discounts of up to 80% on the purchase of the second unit and 2×1 promos, which are equivalent to a 50% discount. “Today, not selling costs very dearly. Because the cost of money is very high because of the fees. It is preferable to fund liquidating stocks that go out to look for money in the market “, summarized the specialized consultant Guillermo Oliveto, director of W.
In the crusade to revive the consumption converge efforts of shops, manufacturers and distributors of almost all items. “The priority today is not to lose the sale. The concessionaires have costs (taxes, employees and services) and different tools are used, such as rebates of between 15% and 20%, depending on the product, “explained Gustavo Bassi, president of the Motorcycle Division of ACARA, the sector chamber. The businessman added that even “there are motorcycles that sell below cost.”
According to the CAFAM, the entity of the manufacturers, motor vehicle sales fell last year 16.5%. Nearly 583,000 units were patented, which contrasts with the 698,709 in 2017. Bassi projects a deeper slump this year, close to 43%, “with a volume of between 380,000 and 400,000 units,” he predicted.
In the automotive sector, the picture is similar: in 2018, sales fell by almost 11% (803,000 units), but the contraction has been accelerating. ACARA data indicate that in December, sales decreased 40.6% with respect to the same month of the previous year. The concessionaires have a lot of accumulated inventory and need to move the stock to pay the costs and pay taxes. “Today it is much more relevant to sell than to obtain profitability”, summarizes Santiago Fernández Barrio, director of Carvi.com, a portal specialized in vehicle offers 0 km of all brands.
In some cases, discounts on mid-range models exceed $ 200,000, due to the cross-promotion of merchants and automotive terminals. A long-time dealer said that almost all manufacturers drive bonuses, but noted that the most active are “Volkswagen, Chevrolet (General Motors), Renault, Ford and Peugeot.” Without going any further, recently the sectoral chambers demanded that the Government adjust the payment of taxes and patents on the cars at the real sale price and not the list prices reported by the terminals and distributors, which are between 20 and 30% more expensive
“The durable goods that were most affected by the mixture of falling purchasing power of the salary, plus the rise in prices due to devaluation,” emphasizes Oliveto. The specialist adds that the trend could revert in the second semester, when they close the paritarias and if the economy is normalized. “The exchange stability, which has been in place for more than 4 months, is key to that. And the temptation too. That is why we are attending a market with strong offers and discounts, “he concluded.
Devaluations particularly impacted consumer electronics. Much more the increase of rates, that retracted to the minimum the offer of plans in installments, a crucial element for the segment. “Today, 50% of sales are in cash, debit or credit card but a payment,” summarizes a senior executive of a specialized chain. The sudden firing of the mid-year dollar occurred shortly before the World Cup, a key driver for the TV exchange. In the industry they calculate that there were 1 million units that were not sold and that today they are at auction prices.
“There is a lot of television in stock and the prices of air conditioners are those of a year ago,” the executive said, adding that “there is not much difference with Miami.” In this sense, Enrique Laffue, CEO of LG, pointed out days ago that “a premium refrigerator model of our brand is cheaper today in dollars in Argentina.