A predominantly positive picture painted by local importers and distributors has been marred by “a particular level of distress” as a result of parallel importation.
A survey of the sector by PwC conducted in June found that 40 per cent of respondents reported that business had increased in the past six months and another 36 per cent indicated constant levels. Only 22 per cent experienced a drop in activity levels.
However, asked about their views on parallel importation, a significant 73 per cent of those interviewed consider that it is increasing consistently across all sectors interviewed.
The latest market barometer was focused on selected categories, namely importers and distributors of bathrooms and related accessories, clothing and footwear, cosmetics and perfumeries, domestic appliances, food and spirits and home/furniture and garden equipment.
The best results were reported by importers and distributors of bathrooms and related accessories, with 58 per cent of those interviewed reporting an upswing in business.
On the other hand, only 31 per cent of the importers and distributors of domestic appliances reported an increase in business. This category, at 38 per cent, also tops the segment that reported a fall in business.
Participants were also asked about their outlook for the next six months, and consistent with the trends experienced in the previous six months, a general positive outlook emerges among half the respondents. Importers of bathroom and related accessories are the most optimistic, at 83 per cent.
The primary concern of the industry is competition, with just over a third of those interviewed reporting that the local industry is highly competitive, mainly because of new entrants in the market. While this is deemed most acute in the bathrooms and related accessories category, other sectors had a wider spread of concerns.
The food and spirits sector concerns are influenced by market trends while internet sales appear to influence the cosmetics and perfumeries and other health products sector together with the domestic appliances importers and distributors.
www.pwc.com/mt/barometer