TEHRAN (Iran News) – Chairman of the Iranian Home Appliances Trade Union Mr. Akbar Pazouki says despite slump in the price of the home appliances in the country, this market is struggling with recession.
Speaking to ILNA and touching upon the current condition of the home appliances market, he said currently this market is in recession like the days before the Nowruz (New Year), adding that some factories have not started production this year yet and it seems they want to increase the price of their products but they have not received any authorization for increasing the prices.
He added that in the month of Ramadhan, people are mostly busy with praying and worship than purchasing goods and the first month of the year, Farvardin, is like the first day of the week, Saturday, that people do not show any will for purchase. He expressed hope that with the end of month of Ramadhan, curbing the coronavirus and beginning of weddings as well as the government support, home appliances market would pick up.
He blamed weak purchase power of the people for this recession, adding that this recession has been seen in some other markets like apparel, gold and cars in recent months.
Pazouki noted that the production association says 70% of the products are home-made and five major home appliances enjoy domestic potentials and therefore the fluctuation in the price of forex will not affect their prices. He also urged the government to support this industry in order that production would pick up with good quality. He reiterated that if the government does not help, all parties, either vendors, producers and customers, will be losers because when producer and consumer do not have shares of the product, the result will be recession that now we are witnessing it in the market.
He went on to say that one month later it will the time of the tax payment by the businesses and it had been decided during the pandemic the government to support the businesses but it did not happen and businesses paid their taxes but now they expect support from the government.
On the effect of removal of sanction on the home appliances prices, he said that now for the production, the manufacturrers have to import their required parts through middlemen and it increases the prices and if sanctions are removed, it will decrease the price of the home appliances by at least 30%.
He also criticized the smuggling of the home appliances and their sales in the virtual space, adding that related organs should take necessary measures.
Pazouki went on to say that sales of the home appliances are to be organized in the virtual spaces to avoid fraud or sales of the smuggled products which harm both manufacturers and purchasers.
