SUMMARY
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MANILA, Philippines – The rural expansion of appliance retailers further boosted sales in Southeast Asia’s major domestic appliance sector in the first half of 2013.
“Rising affluence coupled with multiple retailers expanding beyond first tier cities has been effectively stimulating the penetration of big household appliances with more widespread reach,” explained Jasmine Lim, Account Director for Home & Lifestyle at GfK Asia.
This enabled “more rural dwellers to buy their first of such appliances,” the research company executive said in a September 2 statement.
“This mix of consumer development has incited a strong surge in total sales major domestic appliances in the recent times,” Lim added.
During the first 6 months of this year, 11.5 million units of large appliances were sold across 8 key markets tracked by GfK, namely Singapore, Malaysia, Thailand, Indonesia, Philippines, Vietnam, Cambodia and Laos.
Demand in volume terms spiked by nearly 20% from 2012 while translating to a 22% growth in total dollar value.
RELATED: Rural shoppers buying more FMCGs
Vietnam, Philippine markets
A 31% increase in consumer spending on major domestic appliance was represented by Vietnam, making it the most significant market.
Pent-up demand amassed and the hot climatic conditions in the country enhanced the sales volume of air-conditioners.
The hot weather also boosted sales in the Philippines with cooling and air conditioner as top appliances sold from January to June of 2013. The total sales value amounted to $352,700 million.
|
Appliance |
Units Sold |
|
Cooling |
155,800 |
|
Air Conditioner |
130,500 |
|
Washing Machine |
62,200 |
|
Microwave Oven |
4,300 |
Best appliance performers
Below are more details explaining how each appliance performed in the region:
Air conditioners
The overall air conditioner segment across Southeast Asia escalated by 23% in the first half of the year.
Average local prices of the air conditioners in the respective markets during the period rose 12%. Despite this, consumers are more willing to purchase better models at higher prices, according to the study.
Refrigerators
One-door refrigerators remain the most popular choice among the subregion’s consumers, representing 56% share of total market volume. They continue to dominate bulk of the volume sales in Indonesia, Philippines and Thailand.
Two-door top freezer models still posted improvements as this appliance’s largest absolute value grew 25% and dominated more than half of the product’s over-all value.
Value of the more premium models like the two-door-side-by-side jumped more than threefold in sales value in the emerging markets of Indonesia, Philippines and Vietnam.
“Demand for products at the other end of the spectrum by the rising affluent class will continue to fuel strong demand for larger capacities, new features and better technology and together, these will continue to thrust the sector in this high potential region to even greater heights in the years to come,” Lim concluded. –Rappler.com
Refrigerator, microwave, washing machine and air conditioner image from Shutterstock.
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