Five out of the top six growing appliance markets are from the Global South, with growth rates of 4.8-11.2%. As affluence rises, ACs are increasingly popular. Companies are shifting to direct customer relationships, facilitating servitisation. Subscription models, like LG’s, are thriving, with significant growth in South Korea and plans to expand to SEA. The replacement cycle will drive 2024 growth. AI is reshaping the industry, enhancing climate control, cooking and energy management.
This report comes in PPT.
Pandemic-era purchases are nearing end of life, with the replacement cycle set to drive growth. Growth in 2024 and the next few years will be largely driven by replacement purchases. Categories such as air fryers, coffee machines, vacuum cleaners, air purifiers and multi-cookers will benefit.
Companies are jumping on the AI bandwagon. The industry has fully embraced AI and smart appliances are now AI appliances. Smart technologies are now being relabelled as AI focusing on climate control, cooking, health, energy management and connectivity. We expect AI to drive growth in the premium segment.
Using an “affordable premium” approach, SharkNinja has continued to gain share, at the expense of more established brands in Western markets. Its quick to market and minimalistic designs appeal to many consumer segments.
Appliance companies want to own their customer relationships. Many are now focusing on selling directly to customers, through own retail stores and brand.com sites. This transition will also facilitate the move to servitisation. Subscription appliances have been very successful for LG, with growth rates over 20% for LG in South Korea and plans to expand to SEA.
Five out of the top six markets are from the Global South and growing at healthy rates of 4.8-11.2%. As consumers in these markets are becoming more affluent, many are turning to air conditioners as a means of increasing comfort in their homes.
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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