After the decline seen when the pandemic hit the region in 2020, unit volume sales of consumer appliances have been seeing positive growth since then in Middle East and Africa. However, growth slowed at a regional level in 2023, with some countries, such as Egypt or Nigeria, experiencing difficult economic conditions. Nevertheless, positive growth is expected throughout the forecast period, with South Africa and Egypt helping drive the regional performance.
This report comes in PPT.
The rise of buy now pay later (BNPL) offerings helps more budget-conscious Saudi consumers to invest in big-ticket purchases. BNPL is an acceptable payment method in the Kingdom, as the lack of interest charged means it is Sharia-compliant. This is leading to trends for consumers to replace their old appliances with smarter, modern and more compact options, which suit both their needs and their home style requirements.
Localisation of production is a key theme at the moment in both Egypt and Saudi Arabia. In Egypt, players are choosing this option in the face of the weakening of the local currency and inflation squeezing local consumers' purchasing power. In Saudi Arabia, this is one of the many key aspects to the Kingdom's ambitious Vision 2030 programme.
South Africa retailers are increasingly adopting omnichannel strategies. This includes offering products exclusively online, where the stock handling costs are low, at more competitive prices than in their physical stores. However, many local consumers still prefer to inspect big-ticket goods in physical stores first, supporting the continued dominance of retail offline.
Local currency depreciation, surging fuel prices and the government's demonetisation policy collectively pushed inflation to unprecedented levels in Nigeria, hitting consumer appliance sales in 2023. However, Nigeria is expected to see a strong performance in 2023-2028, boosted by the expanding urban population and an improved business environment. Small businesses, particularly in hotels and foodservice, are also anticipated to drive demand through retail.
Consumer Appliances is the aggregation of major appliances and small appliances. Major appliances are an aggregate of the following categories: refrigeration appliances, home laundry appliances, dishwashers, large cooking appliances and microwaves. Small appliances are an aggregation of the following categories: food preparation appliances, small cooking appliances, vacuum cleaners, irons, personal care appliances, heating appliances and air treatment appliances.
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