The consumer electronics market in SA is estimated at more than R3bn, and there is enormous scope for growth. Demand for the group's small electrical appliances isn't affected by economic conditions alone. Along with electrification comes demand for consumer and commercial electronics. First purchases are likely to be a TV, fridge, kettle, a twin hotplate or steam iron. Nu-World supplies starter packs to furniture dealers for new electricity consumers.
Buyers can choose a three-pack, for example, which contains a kettle, iron and hotplate.
Despite potential global price cuts on appliances produced by turbulent Asian economies, Nu-World's export drive is another important positive factor for the group's success. Chairman Michael Goldberg says the international market for consumer durables has become more competitive over the past six months with the Asian crisis and the proliferation of producers in China. But exports are expected to be boosted by midyear, with new low-cost products, which are currently in tooling. For Nu-World, this further Asian cost cutting must be another incentive to cut production costs. Already, this has put the brakes on the group's impressive surge in exports.