GfK findings on the large domestic appliances market – first half of 2013
Nuremberg, 4 September 2013 – The market for major domestic appliances continues to prosper in Germany and above all in Eastern Europe. Demand is also growing in the Middle East and Asia. However, the South American market is largely static. Spending worldwide was around 5 percent up year-on-year in the first six months (based on USD sales). The global major domestic appliances market (excluding North America) is expected to grow by 4 percent in 2013 as a whole (based on USD sales). These are GfK’s findings on the major domestic appliances market, which are published to coincide with the IFA 2013 trade fair in Berlin.
Growth is stronger in value terms, which can be explained amongst other things by the continuing trend towards high-value appliances worldwide. Consumers are increasingly concerned with protecting scarce resources in energy and water terms. The trend towards energy-efficient appliances has long since established itself, not just in Europe, but in the emerging nations too. In addition, government subsidy programs are boosting demand for high-efficiency appliances. Along with environmental characteristics, demand for greater capacity and user-friendly features is helping the market.
Disparate developments in Europe
In the first half of 2013, the Western European market for major domestic appliances was slightly down in volume terms and more or less unchanged in value terms. Developments were positive in the United Kingdom, Germany and Austria. In contrast, France, Italy, Portugal and Spain experienced declines. The unfavorable macroeconomic conditions in these countries affected demand. Unemployment is almost 11 percent in France and as much as 27 percent in Spain. With the exception of Kazakhstan and Slovakia, Eastern European markets performed very well.
More and more European households are celebrating cooking as an event and consciously focusing on what they eat. It is apparent that consumers are increasingly adopting trends of professionals in their private kitchens. The desire to preserve the vitamins in food is boosting sales of cookers, steamers and ovens with steamer functions. Induction hobs, which still command above-average prices, are gaining ground too.
Taken as a whole, consumers buying major domestic appliances in Europe above all focus on size, efficiency and user-friendliness. The internet continues to grow in importance as an alternative sales channel.
Middle East performing well, but Africa down slightly
Middle Eastern markets are registering strong growth rates, with only a few exceptions. Especially in Saudi Arabia a healthy housing market is boosting the market for major domestic appliances. Refrigerators and washing machines are particularly in demand.
The political instability in Egypt and the resultant uncertainty as to the future of the economy are having a depressive effect on demand for white products. The Egyptian market is very important in terms of volume sales, so this trend is affecting growth in the African continent as a whole. Demand for major domestic appliances is much weaker in South Africa than last year, only recording a much lower increase of 1.4 percent.
Growth in Asia continues
Asia registered outstanding sales growth of nearly 7 percent in volume terms, sustained by the major economies of China, India and Indonesia. The fact that the government stopped subsidies to rural areas in China brought the double-digit growth recorded in the same period of the previous year to an end, but effective government subsidies boosted demand for energy-efficient appliances from June 2012 to May 2013. Higher-capacity washing machines also made a major contribution to Chinese growth. The Indian major domestic appliances market is also thriving. The unusually hot summer months helped refrigerator sales with demand highest for appliances including no-frost technology and greater capacity.
Latin America almost stable
Development in the Latin American region is just about remaining stable. In its core market, Brazil, the positive trends in wash care were faced with falls in refrigerators and cooking. The washing machine market, in particular, continues to show great potential, and the relatively low penetration levels in Brazil mean it is growing constantly. High levels of inflation and government import controls are curbing demand in Argentina. White product sales in Chile and Peru are being stimulated by good economic developments, low unemployment and foreign investment.
The future remains positive
The global major appliance market looks set to perform well in 2013 as a whole. Energy efficiency, trading up and user-friendliness are driving the market, not just in the developed nations, but also increasingly in emerging markets. Products are also increasingly being purchased online.
The method
Through its retail panel, GfK regularly collects data on washing machines, tumble driers, dishwashers, refrigerators, freezers, cookers and ovens, hobs and ranges, extractor hoods and microwaves in more than 90 countries worldwide. The present analysis is based on data for the first half of 2013.
About GfK
GfK is one of the world’s largest research companies, with around 13,000 experts working to discover new insights into the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating and using the latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important people in the world: their customers. In 2012, GfK’s sales amounted to €1.51 billion.
To find out more, visit www.gfk.com