State of the Consumer Appliances Industry in 2014

TRENDS AND INSIGHTS IN THE GLOBAL CONSUMER
APPLIANCE MARKET
2014
POWERED BY PASSPORT FROM EUROMONITOR INTERNATIONAL

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NEW INSIGHTS IN GLOBAL CONSUMER APPLIANCES
MAJOR APPLIANCES
SMALL APPLIANCES
PASSPORT: CONSUMER APPLIANCE DATA UPDATE
FOR 2014

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GLOBAL SNAPSHOT
6
Major Appliances Overview: Volume Growth

GLOBAL SNAPSHOT
7
Small Appliances Overview: Volume Growth

GLOBAL SNAPSHOT
8
Global Production Snapshot

MAJOR APPLIANCES
Refrigeration Appliances: China Leads Global Volume
10
 By 2018, Russia and Brazil will have overtaken India to become the world’s third and
fourth largest refrigeration appliances markets, respectively.

MAJOR APPLIANCES
Drinking and Eating Habits Key to Refrigeration Appliance Design
11
In China, double door bottom freezers account for over half of fridge freezer sales.
Consumers in Brazil and the US tend to buy food in bulk and preserve it in the
freezer, thus double door top freezers are popular.

MAJOR APPLIANCES
REFRIGERATION APPLIANCES
China takes t
i e lon ’s share of refrigeration production
China’s dominance of refrigerator production eis pr ha ps more striking than any other category, producing
almost 120 million units in 2012. It dwarfs the next nine largest producing countries.
In 2012, 13% of the world’s output of refrigeration appliances is generated by Haier alone.
Imports of refrigeration appliances in China are negligible, meaning that 100% of what is sold in China is
also produced in the country.
China is also the largest exporter, with overall volume exports accounting for 30% of its production.
China is also the largest exporter, with overall volume exports accounting for 30% of its production
120
100
80
60
40
20
0
Top 10 Refrigeration Appliance Producers 2012
h
China Mexico India Turkey South Korea USA Brazil Thailand Russia Indonesia
Million units
80
60
40
20
-
Refrigeration Appliances Sales in China 2007-2017
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Retail volumes sales
(million units)
12
Refrigeration Appliance Production: China Takes the Lion’s Share
REFRIGERATION APPLIANCES
China is the largest
producer of
refrigeration
appliances.
Chinese exports vulnerable to mature and troubled markets
The US remains the largest destination for Chinese export of refrigeration appliances. Exports to the US in
2011 were almost 60% higher than in 2007. As retail sales in the market are projected to expand by a
further 2.7 million units between 2012 and 2017, exports are expected also to increase.
Although the Japanese market is projected to shrink further in size over the next five years, relocation and
OEM production could mean more business for manufacturers based in China.
However, China’s dependence on exports to Japan and to troubled Eurozone members makes export
growth vulnerable to the performance of consumer markets whose outlook is quite gloomy.
Most of the export growth that China has recorded in these markets has come hot on the heels of the
relocation of Western manufacturers. It is yet to be seen if similar growth will be replicated in the future,
especially considering the gloomy scenario ahead for retail sales in many markets.
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
-1,000
Top Nine Chinese Export Destinations for Refrigeration Appliances 2007/2011
USA Japan Netherlands Italy Germany France United Kingdom Canada Russia
2007 Volume Exports 2011 Volume Exports Total Retail Volume Sale Increase 2012-17 (actuals)
© Euromonitor International CONSUMER APPLIANCES: PRODUCTION OF MAJOR APPLIANCES PASSPORT 44
The main importer
is the US, importing
20%of Chinese
exports.
© Euromonitor International CONSUMER APPLIANCES: PRODUCTION OF MAJOR APPLIANCES PASSPORT 43

MAJOR APPLIANCES
13
Home Laundry: Global Shift to Front-loading
With the aim of improving profitability,
manufacturers are driving a historic shift
to front-loading washing machines in
traditional top-loading markets such as
the US, India, China and South Korea.

MAJOR APPLIANCES
14
Home Laundry Appliances: Multifunctional to Grow
Different clothing and detergent
preferences, increased urbanisation, and
lack of space and time have an influence
on washing habits, and are boosting
sales of tumble dryers and washer
dryers in emerging markets.

MAJOR APPLIANCES
15
Home Laundry Production and Corporate Strategies
Western European manufacturers are
relocating to lower cost Eastern Europe,
with Poland benefiting the most.
In the US, rumours about possible re-shoring
of production spark doubts over
Mexican home laundry production.
 Thailand’s semi-automatic washing
machine production is expected to grow
further after 2015, when the AEC (Asian
Economic Community) will establish
more trade freedom in the region.

MAJOR APPLIANCES
16
Built-in Large Cooking The Most Dynamic Everywhere Except Asia
Sales of built-in large cooking
appliances in urban China are
growing fast, but not as quickly as
sales of freestanding appliances in
rural areas.

MAJOR APPLIANCES
17
Turkey is the World’s Second Largest Exporter After China
In 2012, 80% of total Turkish large
cooking exports went to Eastern and
Western Europe.
In Brazil, production of cookers is
expected to increase further, as output is
still insufficient to meet growing
domestic demand.

Small Appliances: Sales Volumes and Leading Brands In 2013
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No. Categories
Sales
(‘000
units)
Top product
in category
Leading brand
1 Personal Care Appliances 458,995 Hair Care Appliances
2 Air Treatment Products 416,609 Cooling Fans
3 Small Cooking Appliances 397,615 Coffee Machines
4 Food Preparation Appliances 205,015 Blenders
5 Small Kitchen Appliances (Non-Cooking) 139,317 Kettles
6 Irons 133,707 Irons
7 Vacuum Cleaners 118,436 Cylinder Vacuum Cleaners
8 Heating Appliances 105,429 Electric Blankets
- 1
SMALL APPLIANCES

SMALL APPLIANCES
Sales Volume and Volume CAGR of Air Conditioners
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
20
Global competition will reduce unit prices in air conditioning
600
500
400
300
200
100
0
0
20132014 2015 2016 2017 2018
Vol. of A/C
Vol. of cooling fans
Sales Volume (‘000 units)
Unit Price (US$)
and Cooling Fans 2013-2018
 It is expected that the global unit prices
of air conditioners will decline by 5%
over the next five years, whereas the unit
price in cooling fans will remain the
same.
China, Japan and the US led air
conditioner volume sales in 2013.

SMALL APPLIANCES
21
Air Conditioners: Global Brand Leaders by Region in 2013

SMALL APPLIANCES
Cylinders Lead Global Volume Sales of Vacuum Cleaners
3,000
2,500
2,000
1,500
1,000
500
0
Absolute Volume Growth of Vacuum Cleaners by Type and by Region 2013-2018
22
-500
Asia
Pacific
North
America
Latin
America
Western
Europe
Eastern
Europe
Middle East
and Africa
Australasia
Cylinder Handheld Stick Upright Robotic
Absolute volume growth
(‘000 units)
 It is expected that cylinder vacuum
cleaners will lead absolute volume
growth in all regions except
Australasia and North America over
the next five years.
Almost 90% of absolute volume
growth of upright vacuum cleaners
will come from North America.

SMALL APPLIANCES
23
Robotic Vacuum Cleaners Will Post the Highest Volume CAGR
Robotic vacuum cleaners are expected
to post a global volume CAGR of 9%
over 2013-2018, driven by developed
markets
Absolute volume growth in robotic
vacuum cleaners will be led by Japan,
the US, Germany and France.

SMALL APPLIANCES
24
Vacuum Cleaners: Global Brand Leaders by Region in 2013

Pod Coffee Machines Continue to Thrive
60,000
50,000
40,000
30,000
20,000
10,000
25
0
2013 2014 2015 2016 2017 2018
Espresso
Filter
Hard
Pods
(‘000 units)
Volume Sales of Coffee Machines by Type 2013-2018
SMALL APPLIANCES
Over the next five years, pod coffee
machines are expected to see a volume
CAGR of 6%.
Growth is driven by the global
economic slowdown, reflected in
cocooning and a desire for “affordable
luxury”.
Strong competition between
manufacturers is driving down unit
prices.

SMALL APPLIANCES
26
Premium Standard Coffee Machines Important in Western Europe
The future of coffee machines is not just
about pods.
The total value of standard coffee
machines in Western Europe is
significantly higher than in North
America, due to the popularity of
premium espresso coffee machines.

SMALL APPLIANCES
27
Coffee Machines: Global Brand Leaders by Region in 2013

PASSPORT: CONSUMER APPLIANCE DATABASE UPDATES
New Breakdown: Fryers
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 Fryers will now be broken into “Deep Fat Fryers” and “Light Fryers”.
Market sizes and shares will be researched at the lowest level and summed up to
“Fryers”.
Light Fryers
They use a new technology that claims to obtain a
similar result using just a tiny amount of oil.
Deep Fat Fryers
Traditional full fat fryers, which fry food
by immersing it in hot fat or oil.

New Breakdown: Coffee Machines
30
Standard Coffee Machines will now be broken down into Espresso Coffee Machines,
Filter Coffee Machines, and Other Standard Coffee Machines.
Volume shares will continue to be conducted at Standard Coffee Machines level.
No changes within pod coffee machines.
Espresso Coffee Machine
Filter Coffee Machine Other Standard
Coffee Machines
(Combination)
Other Standard
Coffee
Machines(Percolators)

Category Name Change: Steam Vacuum Cleaners
31
Other Vacuum Cleaners will now be renamed Steam Vacuum Cleaners.

32
Distribution changes
2013 2014
Value

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State of the Consumer Appliances Industry in 2014

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