Shocking downturn in Irish electronics market

IRISH CUSTOMERS are seeking better value and more wallet-friendly products as the economic downturn hits the electronics market.

According to co-founder of TNS Distribution Ivan Eustace, the Irish electronics market has been hit worse than overseas. “The Irish market has bottomed out, whereas the UK and around Europe are still tipping away okay. They’ve gone down a bit, but they haven’t gone down as much as Ireland. A lot of our Irish accounts are a lot slower than our UK or Europe accounts.”

The current economic situation has inevitably hit the higher end of the market more severely. “There’s no doubt about it, there’s a downturn. Everyone can see it.

“What we’ve noticed is the higher value items – anything that’s above €200, €300 or €400, like the high-end speaker systems for your iPod etc, that’s all slowed down. People just don’t have the money for that. All the items where you have to think about the purchase have slowed down.”

However, despite the economic downturn it’s not all doom and gloom. Mr Eustace says that while some areas have seen a marked decline in sales, budget items are continuing to attract customers

“Anything with a low value RRP is still tipping away. People don’t have to make a decision on a €20 or €30 item. People are looking for value, there is no doubt about that.”

Eco-friendly products are also remaining popular with consumers as they appeal both to the environmentally friendly sensibilities of consumers and the ability to save money.

The company has been well-placed to observe the trends throughout the market. Formed in the summer of 2000 by Eustace and John McHugh, TNS Distribution has moved from an Irish-focused business to a pan-European company. The firm, which has offices in Dublin, London, Stockholm, Germany and Spain, concentrated its business on the booming digital lifestyle trend.

“Through the high point it grew at an alarming rate. We grew as the iPod and the iPhone grew and we became known as the distributor for that stuff and accessories for that,” said Mr Eustace.

“Ireland is quite easy to cover because of the population. You can get that done quite quickly, so we looked at other markets and emerged into other markets quickly. Where Apple was doing well, we would follow them.”

TNS has continued to expand its business, and was recently appointed distributor for Sanyo’s products in Ireland

The company’s founders have also established their own brand of electronics accessories, Jivo Technology.