Реферат: 5 Year Plan Essay Research Paper Table

?Sociocultural – English is regularly used in business contexts. There are, of course, firms, especially smaller ones, whose principals do not speak English. In these instances, an interpreter is often made available. It is nonetheless prudent to ask in advance what interpretation provisions have been made for a meeting. Hungarians address each other by their family names first, followed by their given names (e.g., Smith John). Business cards follow this convention unless printed in English. It is always advantageous to learn basic greetings in Hungarian. Even the most minimal efforts will be appreciated by Hungarian business partners.

?Global ? Real wages especially in the private and banking sector are expected to increase 3-4 percent in 1999 and beyond during the following years. The recovery should result in excess disposable household income and could stimulate further demand for small household appliances such as toasters, sandwich makers, fryers etc., which were not typically a part of Hungarian households in the past. Additionally, there is a developing and distinctly upwardly mobile entrepreneurial class, which accounts for about 5 percent of the total population. This segment of the population has more income to spend on luxury goods and is less price-conscious. This group has easy access to household appliances and it is the main purchaser of more upscale items such as automatic dishwashers, washer-dryers, etc.

Imports have increased as a result of CEFTA liberalization of trade policies and the potential threshold membership with the European Union. The free trade agreements called for elimination of all duties on products with the exception of textile and steel products and have increased business opportunities for European firms through liberalization of trade. U.S. imports face a more difficult situation due to comparatively higher import duties for imported American products.

2.Industry Analysis

vHousehold Appliances Industry Summary

1. The total market for household consumer goods in Hungary was $589 million in 1998. Consumption is expected to grow slightly and the total market for household appliances might reach $620 million by the end of 1999.

2. Since the beginning of the 1990s, there has been a much larger product selection in the Hungarian market in household appliances – especially the white goods – owing to increased imports and increased local manufacturing of Western brands which has contributed to rising consumer demand. This development is somewhat surprising due to an overall drop in real wages over the same period. Further growth can be expected over the coming years as consumption levels began to increase last year. Foreign and domestic brand competition has tightened, and both quality and price now play an important role in consumers’ decisions.

3. The Hungarian market for household appliances relies on imports from a mix of countries; among the most important ones are European Union countries (led by Germany), Japan and the U.S. During 1997, the market for appliances in Hungary grew by more than 8 percent over 1996. The total market is expected to continue to grow at about an annual 4-5 percent over the next three years. Imports in 1998 were $320 million, representing a 7 percent increase over the previous year. Imports from the U.S. amounted to $22 million, a slight 2 percent increase over 1997 import level. Of the $22 million, $16 million were large appliances, chiefly washers, dryers, dishwashers, refrigerators and freezers, and $6 million were small appliances. Best prospects in this category are washing machines, dryers, vacuum cleaners, hair dryers, HI-FI sets and VCRs. The Hungarian market for household appliances has shown an overall improvement over the past three years, and is considered to be a promising market for American products.

4. Household appliances include the following:

– Non-kitchen appliances, e.g. washing machines & dryers;

– Small appliances, e.g. hair dryers, irons;

– Kitchen appliances, e.g. refrigerators, microwaves and dishwashers;

– Household electronics, e.g. TV sets, VCRs, HI-FI sets.

5. Market Highlights

STATISTICAL DATA (USD million)

199819992000

Import Market320,2339,2359,5

Production410,2417,5428,3

Exports141,0143,5144,2

Market Size589,4613,2643,6

US Exports to Hungary2223,124,3

Exchange Rates 192240278

Source: Figures are based on preliminary and partial data of the Central Statistical Office 1998 Publications, Budapest, Hungary, on “Foreign Trade Statistics” issued by the Ministry of Economy, 1998 and “U.S.-Hungarian Statistics” issued by Kopint-Datorg Market Research Company.

Estimated Future Inflation Rate: 10%

Last Year’s Import Market Share (Percent for Major Competitors and US): Germany: 28%, France: 23% Japan: 21% Austria: 13% Italy: 9% U.S.: 6%

Estimated Future Inflation Rate: 10% or below

USA: 8%, EU: 37%, Japan: 20%, Korea: 17%, Others 12%.

6. According to market research, there is continued demand for household appliances in Hungary. A reason for that is the wide selection of internationally well known brands already available on the domestic market. Previously, limited only to products produced by Hungarian manufacturers (”Energomat” washing machines or “Elekthermax” cookers), and based on poor East-European quality, consumers are now confronted with thousands of products — from relatively inexpensive Hungarian and former Eastern brands (Vjatka – Russian, Eta ? former East-German) to the most expensive brands (Electrolux, Whirlpool, Bosch etc.).

7. The total number of households in Hungary is 3.9 million. Hungarian households spent about an annual 6-7 percent of their annual income on household consumer goods during the past three years. Most popular items include: refrigerators, freezers, microwave ovens, washing machines, spin-dryers, vacuum cleaners and sewing machines.