Lower Interest Rates Are the Key Ingredient to Strengthen Consumer Demand

Harvey Norman predominantly sells commoditized branded electronics, such as televisions and computers, home appliances, and furniture. We expect the growth of the Australian consumer electronics market to lag overall consumer spending because of constant deflation driven by intense competition. Headwinds continue to mount as internet research and price comparisons threaten Harvey Norman's brick-and-mortar peers. In the core Australian market, Harvey Norman must compete on price with online offers, despite offering its customers in-store service and advice.