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July 12, 2011

Rising Prices in Consumer Appliances

The announcement of Electrolux's intention to raise the prices of its consumer appliances should come as no surprise, states Lorenza Della-Santa, Euromonitor International's Consumer Appliance Industry Analyst. Electrolux and Whirlpool already raised their prices once in the past year due to the rising costs of raw materials. Jon Wright, Head of Global Retailing Research, says that retailers will have to ask themselves two questions: will consumers still buy appliances after prices rise, and if not, will the retailers absorb the new costs pushed onto them by the manufactures? With internet retailing becoming a worldwide trend, store-based appliance retailers will have to remain competitive even with rising unit prices. 

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