The VAT hike hurt IT&C market sales in the third quarter despite the Euro 200 governmental scheme through which the state granted low-income school children 200 euros to buy a PC, which gave retailers a boost, shows a report by GfK research company on the domestic electronics and IT&C products market.
Thus, IT product sales dropped by 8.4% in the July-September period compared with a year ago. The Euro 200 scheme encouraged consumers to focus on IT products, especially during the summer holidays, but the VAT hike fallout brought some lower-than-expected sales, shows the GfK report.
Overall, the domestic durables market in the third quarter shrank by 11% to 305m euros, from 343m euros in the same period of 2009. Compared with the second quarter of this year, though, the market advanced by 14.6% despite the VAT increase and the rough economic environment.
Out of all the sectors analysed by GfK, only the photo and consumer electronics sectors rose by 9% and 0.1%, respectively, with the latter category being strongly influenced by TV set sales.
"Given the current situation, should the consumer electronics market continue its stable trend in fourth quarter, then TV sets will once again be the ones to save the day," reads the GfK survey.
The VAT hike hurt IT&C market sales in the third quarter despite the Euro 200 governmental scheme through which the state granted low-income school children 200 euros to buy a PC, which gave retailers a boost, shows a report by GfK research company on the domestic electronics and IT&C products market.
Thus, IT product sales dropped by 8.4% in the July-September period compared with a year ago. The Euro 200 scheme encouraged consumers to focus on IT products, especially during the summer holidays, but the VAT hike fallout brought some lower-than-expected sales, shows the GfK report. @N