French Air Conditioning market feels the chill

The French Air Conditioning market has strongly decreased so far in 2008. Sales in terms of both value and volume declined by 34% and 29% respectively, to stand at 37 million Euros in August 2008 according to GfK Retail and Technology research data.
 
Portable air-conditioners, responsible for 69% of the market in unit terms fell by almost one third as a result of sluggish pre-summer sales.  Between April and May 2008, sales represented just 19% of the total for the same period the previous year,

Sales made between June and August also decreased, by 3% compared to 2007.  August, however grew by nearly two thirds in unit terms, largely due to the favourable weather.
 
In this difficult period, trade brands were particularly promoted and their sales improved over last year.   In addition, more and more single products are emerging, (85% in 2008 versus 83% in 2007), deemed more attractive due to their weaker average price (average 45% less expensive). 

There two facts directly impacted upon the average price of portable air conditioners which decreased by 13% to reach 318 euro. 

More and more portable air conditioners are equipped with additional functions to improve the quality of the air of the air-conditioned rooms. Thus, over three quarters of the apparatus are equipped with the dehumidification function, and 54% have the capacity to purify air. 

Fixed air conditioners decreased by 19% units (30,200 sales) and 17% sales value (a turnover of 16.7 million euro). More difficult to install, they often require the intervention of a professional. 

Whereas the middle of the season was almost as dynamic as last year, the market suffered from a very late beginning of season: the period April-May 2008 carried out only 40% of units of last year. 

The proportion of the multi-splits apparatus is in a high increase of 74.5%. These more technical apparatus offer the advantage of being able to refresh several rooms at the same time.  Inverter technology has proved successful in the market (+2.7 pts), bringing a higher power and a less power consumption, as well as a lower noise level. 

House installation remains an important investment. The average price of a fixed air-conditioner rises by 554 Euros including tax. The reversible apparatus (air conditioning in summer, heating in winter) represent an economic solution and make it possible to reduce heating costs significantly. . 

In 2008 the weight of trade brands decreased by a significant degree, leaving a more scope for brands on the market. 

Even if air-conditioning spreads in the residential sector, climatic conditions of the previous two years have not proved favourable. In addition, a fixed air-conditioner purchase still represents a significant investment for households. 

To compound the difficulties facing the market, air-conditioning has suffered from a negative image in recent times as environmentally-aware households become increasingly concerned over the high consumption of energy.