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Consumers hit by crisis seek solace in gadgets
Consumer electronic makers are bracing themselves for slower growth in the second half of this year and in 2009, but count on consumers turning to home entertainment amid tougher economic times and tighter budgets.
- Reuters
- Published: 23:30 August 31, 2008
Berlin: Consumer electronic makers are bracing themselves for slower growth in the second half of this year and in 2009, but count on consumers turning to home entertainment amid tougher economic times and tighter budgets.
"When people don't have much money, they cut on big stuff and buy things that make their lives a little bit better, like consumer electronics," TomTom co-founder Corinne Vigreux said.
Vigreux said she expected the satellite navigation device company to be largely unaffected by the slowing economy in Europe and the United States, but retailers were being "very careful" on inventory levels in the run-up to Christmas.
IFA electronics fair
Consumer electronics makers from around the world have descended on Berlin to showcase their products at the IFA electronics fair which runs from August 29 to September 3.
Many companies count on the fair for new orders as retailers shop for the upcoming holiday season, but are worried that a gloomy macroeconomic environment is casting a pall over sentiment.
"The overall market in 2008 is not very good and Europe is even worse," Shin Ik Kang, president and CEO of LG Digital Display.
A global economic slowdown, oil price increases and the subprime crisis had taken their toll, Kang added.
Euro zone retail sales posted their biggest ever yearly fall in June and British retail sales dropped at their sharpest pace in at least 25 years in August.
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