TEHRAN (Iran News) – A member of board of directors of Association of Home Appliance Manufacturers of Iran says during the recent years and with support of Ministry of Trade, Mine and Trade, production of home appliance has increased from 8m to 16m sets.
Speaking in a brainstorming meeting of minister of industry, mine and trade with active associations in the industry, mine and trade sectors, Mr. Alireza Mohammadi Daniali said that the main problem of the national industry is command pricing and nobody knows this type of pricing has been copied from which successful global model.
He emphasized that industrial strategy should be under the shadow of macro-economic strategy but command pricing leads to destruction of industry and economy.
Daniali blamed the smuggling and fake products as the main problems of the home appliance industry and noted that fortunately good move has started by the industry ministry in the field of smuggling and fake products but its total elimination needs a national determination.
He added that despite the double fold rise in home appliance production, recession dominates this industry and country needs some solutions to come out of this deadlock.
He reiterated that the ministry pays for the idealistic policies that some part of the ruling establishment pursues it and in fact these policies are a rent-seeking opportunity which national economy gives the political sector.
Meanwhile an expert in the field of home appliance industry told IRNA that recent riots in the country have deepened the existing recession in the home appliance market.
He said that internet disrupt or low internet speed has not so much affected the production trend in the companies because orders are received by the phone or emails but when the purchasers cannot afford to buy, the products are stored in the warehouses and it will lead to the deepening of current recession.
He noted that in the past two years the pandemic was the main reason for the recession in the market but the producers and vendors took some initiatives and tried to sell their products in the virtual space.
He went on to say that because of gradual trust of people to this sort of sales, the market was revived and people got used to buy their products by internet rather than physical presence in the stores and this also helped the number of smuggled goods is reduced in this virtual market.
He noted that the current condition in the country and recent riots have pushed the people to buy gold or dollars and therefore they do not pay attention to the home appliance market and therefore recession in the home appliance market has deepened more than before.
He predicted a tough time for this industry and production sector by the end of the current year. He noted that recent incidents and recession has forced companies to reduce their products, adding that the home appliance production capacity can meet the demands of the country and neighboring countries.
