KELOWNA, British Columbia, Aug. 26, 2022 (GLOBE NEWSWIRE) — The effects of the recession have started to be felt in Europe and around the world as global markets are under the influence of inflation. Several factors, such as rising costs, inadequate production relative to demand, and potential chip crises, have put electronics trading at risk, especially in Europe. According to the statements of Europe’s largest commercial distributor IMEX Holding, Martin William Edelberg Sorensen, despite the fact that companies in Europe are facing a possible threat of loss, the demand for electronic products in the market has increased. The European Consumer Electronics Report, shared by Statista, also verifies this claim and demonstrates that the European electronics market reached a value of $202.10 billion in the first half of 2022, and that it does not There are no signs of a recession yet in the sector.
Interest in consumer electronics is increasing day by day, and generally the annual growth rate is accelerating. Irrespective of global inflation risks, the volume of devices in the market per capita is expected to increase to 1.6 items by the end of 2022. With over 40 years of experience in the field and a passion To sell the highest quality products in new markets, Imex Holding is working hard to meet these growing market expectations. According to statements by CEO Martin William Edelberg, the recession is likely to affect small businesses in particular; strong companies such as Imex Holding are faced with a demand which, on the contrary, is increasing.
WHAT ARE THE POSSIBLE EFFECTS OF THE RECESSION ON THE ELECTRONICS INDUSTRY?
Recession is defined as sluggishness in the most basic sense, and it symbolizes significant declines in the economy that are usually seen for a few months. As a result, this leads to contractions in countries’ economies and declines in per capita incomes. The recession, which is a risk for the markets in general, has benefited solid companies such as Imex Holding. In a statement he made, the company’s CEO, Sorensen, noted that they lead the European retail and mass production market under the name Imex Holding, and he continued his speech as follows: “The fact that there is a recession in the world has been felt since the last months of 2021, however, this situation has not affected the demand for electronic devices such as smartphones, headphones and game consoles. Even though smartphones currently dominate the sector, we suspect that this balance could change in the future and thus, we maintain our studies accordingly.
A study conducted by Deloitte over the period 2018-2021 also confirms Sorensen’s statements and illustrates that products such as televisions and computers have a faster growth share than smartphones. According to Sorensen, living and working habits, which have changed as a result of the pandemic, contribute to this situation. “The remote work and education systems that were introduced after the pandemic created new needs and these needs made devices such as headphones, computers and glasses essential requirements. Therefore, we do not expect the recession, which is a general threat, to influence consumer electronics, quite the contrary; we believe that such devices are the technology of the future and that they will be sought after all the time for this reason .”
Sorensen, who also mentioned that digital tools have now become a particular comfort zone, said another reason for the growing demand is social media and gaming platforms. He said that since these platforms have given rise to new lines of work and the importance of producing digital content is understood, more and more technological devices are now being used. Furthermore, he also added that several devices such as headphones and cameras have now moved into the basic needs category and hybrid business models have improved the use of technology.
HOW WILL THE GLOBAL RECESSION AFFECT SHOPPING PATTERNS?
Since it is usually not easy to predict the level of consumer spending, it can be said that there are a plethora of factors influencing the purchasing power of consumers. While the household’s financial situation plays the most critical role here, being able to gauge future expectations is equally important. Therefore, it can be mentioned that the fact that there are risks for consumers in Europe in general, such as facing a severe loss of income in the future and a lower standard of living, affects spending decisions. .
Nevertheless, according to statements by Sorensen, who notes that as Imex Holding they closely monitor both developments globally and European market variables, the recovery of economies in the post-pandemic period continues and although there is a risk of recession not only in Europe but also in the world, the needs for electronic products are increasing instead of decreasing. Imex Holding has largely met this need by bringing to market the most sought-after products in the industry, and this situation proves that interest in technological devices has not yet died out.
Particularly recently, developments such as the growing popularity of metaverse-oriented projects and increased interest in blockchain and virtual reality devices have drawn worldwide attention. Consumers do not want to be left behind by renewed technologies and are compelled to act more sensibly when making purchasing decisions, even if the risk of recession persists. Indeed, consumers are increasing the frequency of their purchases of electronic products due to the emergence of new tools and the pursuit of studies based on artificial intelligence. Devices that were once used for many years are wearing out in a short time now, and new concepts such as 5G and Internet of Things are being introduced in the market. As a result, the need for consumer electronics does not seem to be diminishing. This circumstance penalizes the sales of electronic products while it reinforces the demand for digital tools and contributes to the growth of the giants of the sector like Imex Holding.
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Photo 1: Martin William Edelberg Sorensen
Martin William Edelberg Sorensen, CEO of IMEX Holding
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Martin William Edelberg Sorensen