The data in the market of electrical and electronic devices are changing.

Three strong players are now claiming a share of the pie of more than half a billion euros. The machines that have been stationary for years are "scarfing" the machines electrical and electronic goods sector.

Νcreates balances in the electronics and electrical appliances industry the formalization of the Germanos group's relationship with Media Markt which has been prefaced for a long time and was finalized just at noon on Tuesday.

After this deal, the industry, which has been stagnant for years, acquires three strong players, given the entry of Plaisio in the "whites" announced last week, who will claim a share of the pie of half a billion.

The new day of Media Markt - Public

As announced, the Olympia Group, a shareholder of Public in Greece and Cyprus, and Media-Saturn-Holding GmbH (MSH), a shareholder of Media Markt Greece, entered into a strategic agreement with the aim of creating a new, dynamic retail company. . In this new dynamic company that will be created, the Olympia Group (shareholder of the company Public) will control 75%, while the MediaMarktSaturn Group will control 25% while the head of the whole venture will be Mr. Christos Kalogerakis, CEO of Public. However, the closing of the agreement is subject to the approval of the authorities of the Hellenic Competition Commission, which is estimated to be in the fourth quarter of this year.

A new proposal for both consumers and suppliers is the Olympia Group's landmark agreement with the Greek Media Markt, as it will include a wide range of products and services in these categories.
According to the plan of the two companies, both the store networks and the two brands will be maintained, operating completely complementary, with 67 physical and 3 online stores in two countries addressed to a unified customer base that numbers about 100 million visitors.

Consequently, the new network that will be created will include different store formats, the surface of which varies from 100 sq.m. up to 4.000 sq.m., and will emphasize the integrated multi-channel trade.

The placement of the Frame

The competition is sparked by another player with a history of 50 years and activity until yesterday exclusively in electronic devices. As announced a few days before the Olympia - Media Markt deal, the Frame is placed in the market of white appliances with five physical stores and its online shopping channel, in an investment of over 15 million euros. The goal of this chain is to offer a complete range of "technology products" - as white appliances are becoming smarter - to its customers.

The stores of Renti, Daphne, Agia Paraskevi, Metamorfosi and Kalamaria are the first in the chain in which consumers will find the new products, however the network is expected to expand in the near future, to as many stores as possible due to area .

Of course, the management also bets on the sales of white devices through its online store, calculating that they will exceed 8% -9%, ie the current percentage of its Online sales.

Notifier difference in the movement of the Box compared to other market players, are products of this type with its own brand - Nouvelle this time not Turbo X - but also the innovative smart home service which will be provided to customers with the help of Control 4 which enables connectivity on a platform of many different brands of smart devices which are controlled by a special application compatible with Alexa.

Optimism from the No. 1 market player

Both the acquisition by the Public of the majority stake in Media Markt, the No. 2 "player" of the market, and the entry of the Framework in the "whites" are expected to change the data in an industry whose scepter has been held for years by Kotsovolos. Of course, this does not seem to scare the well-known chain since according to its executives "the addition of structured players is expected to benefit the whole industry, and especially the strong market players, such as Kotsovolos".

Looking ahead to the highly competitive future, the chain is preparing for the "next day" of the industry, which will be dominated by e-commerce and the offline experience will be inextricably linked to Online. For this reason, as it announced during the presentation of its financial results, the new year will implement a new generation of investments, amounting to 11 million which will have technology at the center. In addition to enriching its physical store network - through the renovation of 7 existing structures, the addition of three more to its extensive network and the relocation of five stores in the province - Kotsovolos will invest in a new CRM, a training center which will created in Thessaloniki but also in a new warehouse of 17.000 square meters in Aspropyrgos with the aim of providing the best customer service at the best possible time, even on peak days such as Black Friday.

Let us also remind that 2018-2019 was a milestone year for Kotsovolos, which achieved the highest turnover in its history, recording an increase in many sub-categories. In particular, as announced a week ago, Kotsovolos' turnover closed at € 520 million, marking an increase of 12.5% ​​compared to the previous financial year 2017-2018, while earnings before interest, taxes, depreciation and amortization (EBITDA) reached € 25.2 million, marking an increase of 25.1%. Operating profit (EBIT) amounted to € 20.1 million, increased by 17.5% compared to the previous financial year while cash and cash equivalents reached € 95.4 million, after the investments that amounted to € last year. 10.7 cm

Purchase with satisfactory prospects

A positive example for the future of young and established players is the fact that the following reshuffles take place at a time when the market has changed sign, despite the small increase or stagnation observed in the first months of this year.

In fact, according to market participants, the positive Momentum is expected to continue, with a slight growth of 1,5% -2%, and in the coming years, with the lion's share of white appliances (kitchens, refrigerators, washing machines and .etc.) while the black audio and video devices also move very well. According to the consulting company Stochasis, until 2021 the market will move with an average annual rate of change (MERM) of 4% in terms of sales volume (units).

It should be reminded that during the period 2009-2017 the market was marked by a significant decline of -6,5% - with the decline being more intense in the first years of the crisis (2009-2013) and softening in the last five years (2013-2017 ). And if 2017 saw the first signs of recovery, the following year sales of electronics and electrical appliances showed a significant increase of 7,3%, reaching 497 million euros compared to 460 million euros in the corresponding quarter of the previous year, according to with Gfk while next year sales exceeded half a billion.

Source