The rising affluence of consumers is stimulating sales of major domestic appliances in Southeast Asia.
The total market worth of washers, air-conditioners, refrigerators and microwave ovens sales grew by a healthy 13 per cent in 2012 over the previous year.
In 2012, 19.5 million units of major domestic appliances were sold across Malaysia, Singapore, Thailand, Indonesia, the Philippines and Vietnam, worth close to US$6 billion, according to data from GfK.
Indonesia led in growth, and together with two other countries, made up three out of six in the region which registered vibrant double-digit growth in value.
“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,” observed Jasmine Lim, GfK 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,” said Lim.
Air-conditioners posted the highest volume growth at nearly 18 per cent, with the Philippines and Vietnam the two fastest growing markets, demand up 20 per cent year on year.
GfK’s findings revealed that consumers here are increasingly purchasing better and higher end models, which correspondingly upped the average price for air-conditioners in the region by as much as 12 per cent.
In the washing machine category, although single tub remains the dominant segment making up over half of all washing machines purchased, rapid adoption of front load washers was observed across the region with value growth expanding in the range of nine and 68 per cent in the respective countries. Washers in four out of six of the countries experienced a marginal fall in their local average price.
“Although front loading washers cost more than twice the price of single tub models, consumers are still willing to spend more on such models,” 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.”
Another contributing segment to the major domestic appliance sector is refrigerators which expanded by around 11 and 10 per cent in value and volume respectively.
“Single-tub washers and single-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 fuelling demand for more premium appliances, and together, this demand will drive the continued growth of the major domestic appliances sector in the region,” she concluded.
GB
