As the Nowruz market approaches, Iran’s household appliances market finds itself grappling with a lack of momentum and intensified stagnation over several months. The repercussions of this economic slowdown have led producers to adopt unconventional strategies, such as selling products in installments, in an attempt to secure financing while still stimulating sales. However, challenges in obtaining loans and ensuring liquidity have given rise to a unique trend where individuals purchase goods in installments from chain stores and resell them at discounted prices in the market.
Installment Market Challenges:
Major stores in urban areas are now offering household appliances on an installment basis, responding to the prevailing economic challenges. The ongoing variations in the installment market, coupled with frequent discounted sales in the household appliances sector, have led manufacturers to temporarily cease selling goods to dealers, citing various pretexts. This shift underscores the complexity of the economic landscape and the creative measures businesses are taking to adapt.
Currency Market Fluctuations:
The household appliances market’s woes are further compounded by significant fluctuations in the currency market, notably the dollar reaching 60,000 tomans. Traders dealing in household appliances, electronic devices, mobile phones, as well as coins and dollars, have suspended their buying and selling activities in response to the currency’s volatility. Reports on social media and news channels indicate a halt in the sale of coins and dollars in the market, causing ripple effects in the mobile market with severe price fluctuations and a suspension in the announcement of product prices and sales.
Producer Pricing Strategies and Criticisms:
Tasnim, a state-run news agency, has reported on the household appliances market, highlighting businessmen’s perception that the surge in the dollar rate has become a pretext for producers to justify high prices and demand changes in pricing across their product range, resulting in a current sales halt. The report criticizes domestic producers, accusing them of sourcing foreign exchange from the free market and constantly adjusting product prices with every fluctuation in currency exchange rates.
Media Perspectives and Responses:
The ‘Khaber Online’ website has also covered foreign exchange market fluctuations, designating a particular day as pivotal due to prices approaching the third resistance barrier of 60,000 tomans. In response to market tension and criticism towards domestic producers, the state-run Etelaat newspaper suggests that resolving currency market issues requires acknowledging market realities instead of issuing obligatory government statements. This shift in perspective emphasizes the need for a nuanced approach to economic challenges.
Central Bank Intervention:
In an unusual move, the central bank authorized the issuance of 280 trillion tomans in special deposit certificates with a 30% interest rate when the dollar surpassed the 60,000 toman mark. This intervention aimed to secure market conditions and resulted in the dollar retracing to 59,000 tomans, temporarily stabilizing prices in the market. As of the latest information, the dollar’s price on gold and currency websites is 58,400 tomans, with street prices standing at 59,200 tomans.
