state of the consumer appliances industry in 2014

TRENDS AND INSIGHTS IN THE GLOBAL CONSUMER APPLIANCE MARKET2014

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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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OVERVIEW OF PASSPORT


WHAT IS PASSPORT


MAJOR APPLIANCES

SMALL APPLIANCES


FOR 2014


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Major Appliances Overview: Volume Growth

GLOBAL SNAPSHOT



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Small Appliances Overview: Volume Growth

GLOBAL SNAPSHOT



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Global Production Snapshot

GLOBAL SNAPSHOT


WHAT IS PASSPORT


MAJOR APPLIANCES

SMALL APPLIANCES


FOR 2014


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By 2018, Russia and Brazil will have overtaken India to become the world’s third and fourth largest refrigeration appliances markets, respectively.

Refrigeration Appliances: China Leads Global Volume

MAJOR APPLIANCES



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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.

Drinking and Eating Habits Key to Refrigeration Appliance Design

MAJOR APPLIANCES



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Refrigeration Appliance Production: China Takes the Lion’s Share

MAJOR APPLIANCES

© Euromonitor International PASSPORT 44 CONSUMER APPLIANCES: PRODUCTION OF MAJOR APPLIANCES

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.

Chinese exports vulnerable to mature and troubled markets

REFRIGERATION APPLIANCES

-1,000

0

1,000

2,000

3,000

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USA Japan Netherlands Italy Germany France United Kingdom Canada Russia

Top Nine Chinese Export Destinations for Refrigeration Appliances 2007/2011

2007 Volume Exports 2011 Volume Exports Total Retail Volume Sale Increase 2012-17 (actuals)

China is the largest producer of refrigeration appliances.

The main importer is the US, importing

20% of Chinese exports.

© Euromonitor International PASSPORT 43 CONSUMER APPLIANCES: PRODUCTION OF MAJOR APPLIANCES

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China Mexico India Turkey South Korea USA Brazil Thailand Russia Indonesia

Mill

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Top 10 Refrigeration Appliance Producers 2012

China’s dominance of refrigerator production is pe r 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 takes t

h

e li on ’s share of refrigeration production

REFRIGERATION APPLIANCES

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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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Refrigeration Appliances Sales in China 2007-2017

China is also the largest exporter, with overall volume exports accounting for 30% of its production



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Home Laundry: Global Shift to Front-loading

MAJOR APPLIANCES

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.



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Home Laundry Appliances: Multifunctional to Grow

MAJOR APPLIANCES

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.



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Home Laundry Production and Corporate Strategies

MAJOR APPLIANCES

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.



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Built-in Large Cooking The Most Dynamic Everywhere Except Asia

MAJOR APPLIANCES

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.



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Turkey is the World’s Second Largest Exporter After China

MAJOR APPLIANCES

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.


WHAT IS PASSPORT


MAJOR APPLIANCES

SMALL APPLIANCES


FOR 2014


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No. CategoriesSales(‘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

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Small Appliances: Sales Volumes and Leading Brands In 2013

SMALL APPLIANCES



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Global competition will reduce unit prices in air conditioning

SMALL APPLIANCES

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2013 2014 2015 2016 2017 2018

Vol. of A/CVol. of cooling fans

Sale

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me

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00

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rice

(U

S$)

Sales Volume and Volume CAGR of Air Conditioners 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.



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Air Conditioners: Global Brand Leaders by Region in 2013

SMALL APPLIANCES



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AsiaPacific

NorthAmerica

LatinAmerica

WesternEurope

EasternEurope

Middle Eastand Africa

Australasia

Cylinder Handheld Stick Upright Robotic

Absolute Volume Growth of Vacuum Cleaners by Type and by Region 2013-2018

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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.

Cylinders Lead Global Volume Sales of Vacuum Cleaners

SMALL APPLIANCES



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Robotic Vacuum Cleaners Will Post the Highest Volume CAGR

SMALL APPLIANCES

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.



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Vacuum Cleaners: Global Brand Leaders by Region in 2013

SMALL APPLIANCES



25

0

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2013 2014 2015 2016 2017 2018

Espresso

Filter

HardPods

(‘0

00

un

its

)

Volume Sales of Coffee Machines by Type 2013-2018

Pod Coffee Machines Continue to Thrive

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.



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Premium Standard Coffee Machines Important in Western Europe

SMALL APPLIANCES

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.



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Coffee Machines: Global Brand Leaders by Region in 2013

SMALL APPLIANCES


WHAT IS PASSPORT


MAJOR APPLIANCES

SMALL APPLIANCES


FOR 2014


29

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”.

New Breakdown: Fryers

PASSPORT: CONSUMER APPLIANCE DATABASE UPDATES

Deep Fat Fryers Traditional full fat fryers, which fry food by immersing it in hot fat or oil.

Light FryersThey use a new technology that claims to obtain a similar result using just a tiny amount of oil.



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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.

New Breakdown: Coffee Machines


Espresso Coffee MachineFilter Coffee Machine Other Standard

Coffee Machines

(Combination)

Other Standard

Coffee

Machines(Percolators)



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Other Vacuum Cleaners will now be renamed Steam Vacuum Cleaners.

Category Name Change: Steam Vacuum Cleaners




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Distribution changes


2013 2014

Value



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state of the consumer appliances industry in 2014

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