Who would have thought a TV set will drink our beer?

Until last year, the persons in need of a loan had to start by wooing a bank, then find all the necessary papers and pray that they fit the bank’s criteria. However, since last year, when rates dropped and other financial instruments became less profitable, it has become the banks’ job to get customers. On the other hand, although the banks are less demanding, Romanians are not much richer. Thus, the monthly instalments that must be paid in the account of a loan come from the same modest salaries and are, in fact, beginning to affect other businesses. The first victims can be found on the consumer goods market.
The beginning of 2003 already shows that, under increased pressure from instalments, medium-income Romanians have waived certain consumption habits. The negative effects are already felt on certain markets, such as beer, cosmetics and foodstuffs.
“When they need to tighten their belt, people generally buy only the basics, such as bread and milk and give up on other products,” Shachar Shaine, marketing manager with Tuborg Romania says, trying to explain the slump of the beer industry to a record-low for the past few years.
The Report of the Beer Producers Association for Q1, 2003 shows a 9.3% drop in the quantitative consumption as compared to last year, while the evolution of certain companies points to increased preference for cheap beer. Which could lead to an even more dramatic plunge in terms of value.
Concerned by the market evolution, officials of beer producers link the drop in consumption to the boom of the instalment plans for the acquisition of goods and houses.
“A difficult winter usually leads to higher maintenance expenses and, naturally, to less money for consumption. This year, however, the market is also affected by the increased instalment-related expenses for the acquisitions of houses and goods,” said Dorin Gherman, marketing manager with Brau Union Romania, the largest beer company on the market.
According to a Daedalus survey, 9.3% of Romanians have bought a product in instalments over the past 12 months. The soaring numbers of acquisitions in instalments is also proved by the evolution of sales in the household devices stores. They doubled their sales last year and 2003 also looks very promising. For instance, Merloni Elettrodomestici, the Italian group holding the Indesit and Ariston brands, has tripled its sales in Romania in the first quarter of this year, due to the instalment system.
laurentiu.ispir@zf.ro