Asians buying more appliances - study
MANILA, Philippines - As Asians find themselves with more cash to spare, they are choosing to spend some of it on domestic appliances.
This is reflected in the 13% sales growth of domestic appliances -- ranging from washers, air-conditioners, refrigerators and microwave ovens -- across South East Asia, noted research firm GfK Asia, which released its year-long survey on February 18.
In 2012, 19.5 million units of major domestic appliances were sold across Malaysia, Singapore, Thailand, Indonesia, Philippines and Vietnam, racking up $6 billion worth of sales. Indonesia, which sold $595 million-worth of small appliances, led in growth, the survey said.
“Even as some households in developing markets are installing their first double-tub washer, a proportion of the affluent population is concurrently upgrading theirs to the larger capacity models with enhanced technology,” said GfK's Jasmine Lim, Account Director for Home and Lifestyle products.
“A flourishing domestic economy and rising affluence are key reasons for the robust sales of appliances, especially air-conditioners, refrigerators and washers,” she added.
The Philippine economy grew 6.6% in 2012, Indonesia 6.23% and Thailand 6.4% -- all showing resilience to the faltering global economy.
Which appliances did best?
GfK made special mention of the following domestic appliance items that did well in 2012.
These posted the highest volume growth at nearly 18%. Philippines and Vietnam are the two fastest growing markets for this appliance, registering more than 20% surge in demand from last year.
The survey found that consumers are increasingly purchasing better and higher end models, which upped the average price for air-cons in the region by as much as 12%.
- Washing Machines
Although single tub remains the dominant segments making up over half of all washing machines purchase, there has been an uptake in buying front load washers with value growth expanding between 9% and 68%.
Washers in 4 out of 6 of the countries experienced a marginal fall in their local average price.
“Although front load washers cost more than twice the price of single tub models, consumers are still willing to spend more on such models due to two key reasons,” highlighted Lim.
“The local government in tandem with manufacturers have been actively educating and promoting front load machines for their greater water efficiency with much success.”
Refirgerators expanded by around 11 and 10% in value and volume respectively.
“Single-tub washers and one-door refrigerator segments will definitely continue to see growth as penetration deepens in the emerging markets where some households purchase their first washer and refrigerator,” said Lim.
“At the same time, the rising affluent class will also keep on fueling the demand for more premium appliances, and together, these demand will drive the continued growth of the major domestic appliances sector in the region,” she added. - Rappler.com