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According to a GfK report, Asia Pacific consumers bought more appliances in 2015, albeit, marginally.
Check out the report below.
While the global market for major domestic appliances (North America not included) bucked its rising trend from the past few years to register negative volume growth for the first six months of this year, Asia Pacific’s key markets* managed to continue turning in an overall positive performance. In January to June this year, the region reported increased sales volume and value of refrigerators, washing machines and air conditioners by 1 and 2 percent (based on Euro) respectively.
According to findings, global sales units of major domestic appliances were down by 1 percent, although sales revenue managed to surge significantly by 9 percent. Western and Eastern Europe, China and particularly India from the rank of the BRIC markets were the growth drivers. On the other hand, Brazil and particularly Russia lagged behind last year’s progress in the first half of this year. GfK published the first half year results of the global major domestic appliance market to coincide with the recent IFA 2015 trade fair in Berlin.
Asia Pacific* countries mostly reported demand growth for their respective major domestic appliances sectors in the range of 1 to 34 percent. The only exceptions were South Korea, Malaysia and New Zealand where volume sales slowed down by 7, 4 and 4 respectively. On the other hand, markets which reported robust double-digit surge level in sales units were Cambodia and Vietnam, at 34 and 14 percent. When it comes to revenue generated for the first half of 2015, all except South Korea reported increases in the range of 1 to 38 percent, with Cambodia, Vietnam, and also Taiwan growing strongly by 38, 18, and 10 percent from the same period last year.
“Overall growth of the major domestic appliances in Asia Pacific was driven largely by the robust performance of the larger developing markets, where rising number of retailers are opening up in the rural areas and making it more accessible for villages to acquire home appliances,” observed Jasmine Lim, Account Director of Home & Lifestyle at GfK. “Higher growth of sales value compared to the sales volume is a result of households trading up for more expensive appliances with more advanced technology.”
The biggest segment of refrigerator was valued at over 5 billion euros in January to June 2015. Consumers in the region bought over 14 million units, translating to 2 and 5 percent growth in sales volume and value compared to last year. Washing machines also expanded in market value by 5 percent, although demand grew only 1 percent. Meanwhile, air conditioners sold more units but fell in terms of overall revenue generated across the markets.
In the first half of the year, key growth countries for the air conditioner market were Cambodia, Vietnam, Taiwan and Thailand, which sold 45, 23, 19 and 13 percent more units compared to last year. However, overall growth for the region was affected by the lower demand seen in Korea, Malaysia and Singapore.
“While demand for air conditioners in developed countries appear to be slowing down, sales in developing markets continue to grow strongly, especially in value terms, spurred by the surging adoption of inverter types,” explained Lim. “Outlook for major domestic appliances sector in Asia Pacific will continue to remain optimistic, as we expect growth to be driven by households in several Asian markets which are acquiring their first appliances, as well as the upgrading trend taking place concurrently in the urban regions at the same time,” she concluded.
– Survey period: January – June 2015
– Survey comparison period: January – June 2015 vs January – June 2014
– APAC countries include Singapore, Malaysia, Thailand, Indonesia, Philippines, Vietnam, Cambodia, South Korea, Hong Kong, Taiwan, Australia and New Zealand (excluding China and Japan)
For more information, please visit www.gfk.com