Domestic Electrical Appliances in Mexico
Euromonitor International's Domestic Electrical Appliances in Mexico market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Tables: 182 | Publication date: Jan 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Large kitchen appliances; Small electrical appliances
Executive summary
Moderate consumption environment predominates
Volume sales growth of domestic electrical appliances slowed in late 2007 and continued into 2008. Being intimately linked to the business cycle of the US, Mexican exports and remittances have inevitably declined and thus, impinged on the economic growth. In addition, the inflation rate has already surpassed the low level of 2007 (3.8%), and reached 6% by the end of 2008. With Mexico being a big importer of domestic electrical appliances, it is quite likely that retailers, such as Liverpool and The Home Depot, kept higher inventories for 2008, as consumers curbed their purchases. This is worrying for manufacturers, which foresee that the only strategy for them is to keep up the good quality in the products they offer.
Industry growth curbed by increasing raw material prices
Significant price increases of steel, copper, aluminium, plastic and fuels led to higher retail prices in 2008. Manufacturers have encountered rising production costs since 2002: a 66% increase in energy prices and 217% rise in natural gas prices, contributing to higher fixed expenditures. Although some domestic electrical appliances players have tried not to pass these price increases on, unit prices for large kitchen appliances, for example, have been particularly affected. Trade press reports the price of steel rose by 50% by mid-2008 and it accounts for 80% of these appliances’ composition. Diesel prices have increased almost 10% and gasoline over 5%. Higher production costs also led to job cuts and factory closures, such as the Whirlpool plant in Reynosa, Tamaulipas. It is expected that the high costs will continue in the near term for most categories, which will further dampen the potential for greater profit margins by curbing production and operations efficiency.
Department stores: the weakest gains amongst retail channels but stronger internet sales
While internet sales are increasing, volume sales growth in department stores has slowed to 2% in 2008 due to the US economic deceleration and weakening consumption in Mexico. With the deceleration in economic growth, consumers tend to use their incomes to purchase basic products such as food and for paying bills, rather than acquiring expensive appliances, like laundry machines or refrigerators. Although alarming, the slowdown in the growth of volume sales at retail channels still does not mean a contraction. Nevertheless, the National Association of Retail Channels (Asociación Nacional de Tiendas de Autoservicio y Departamentales) urged retailers to respond with cautiousness and more creativity, for which supermarkets and variety stores have been widening and focusing on different forms of store credit for large and small electrical appliances.
Mexican Mabe is a possible buyer of GE's Appliances division
With the economic slowdown in the US and falling company share prices, GE has been urged by its shareholders to sell its low-margin appliances division. As the licensed manufacturer of GE products in Mexico, Mabe’s business performance and position in the market is intimately linked to this decision, and there are fears that around 48% of its shares could become controlled by a foreign firm. Mabe’s commercial partnership is expected to conclude in 2011, but is deferrable every four years. So far, the agreement has been highly successful, with increasing value growth and volume shares for both companies. Thus, Mabe is considering buying back its shares, while it is still partnered with GE. Other possible buyers are – Bosch-Siemens, Haier, LG, Electrolux, Whirlpool and Arcelik.
Growth to slow, but technological innovation will spur replacement sales
Growth over the 2008-2013 period will slow but remain positive, underpinned by Mexican consumers’ growing demand for more technologically-advanced domestic electrical appliances. While increased access to credit and new home construction will most certainly spur volume sales across all economic classes, higher income earners will be drawn to more sophisticated technology in categories such as hair care appliances, refrigerators, laundry appliances, air treatment products, microwaves and irons. In addition, niche products that promote convenience, like dishwashers and washer dryers, will strengthen the industry and help offset slowing growth due to inflation, commodity price increases and the global economic slowdown. Multinational companies, such as LG, Samsung and Whirlpool, as well as national firms like Mabe, will lead their respective sectors in innovation with more diverse product portfolios.
Table of contents
DOMESTIC ELECTRICAL APPLIANCES IN MEXICO : MARKET INSIGHT
EXECUTIVE SUMMARY
Moderate consumption environment predominates
Industry growth curbed by increasing raw material prices
Department stores: the weakest gains amongst retail channels but stronger internet sales
Mexican Mabe is a possible buyer of GE's Appliances division
Growth to slow, but technological innovation will spur replacement sales
KEY TRENDS AND DEVELOPMENTS
Age Demographics Boost Housing Market and Promote Long-Term Sales Growth
Financial crisis in the US damages short-term sales growth in Mexico
Credit boosts sales but outlook is cloudy
Far from substituting domestic chores, new technology complements daily routines
Modern aesthetics: Semi-integrated appliances gaining preference
Personal care appliances maintain strong growth
MARKET INDICATORS
Table 1 Household Penetration of Selected Total Stock Domestic Electrical Appliances by Sector/Subsector 2003-2008
Table 2 Replacement Cycles of Domestic Electrical Appliances by Sector 2008
MARKET DATA
Table 3 Sales of Domestic Electrical Appliances by Sector: Volume 2003-2008
Table 4 Sales of Domestic Electrical Appliances by Sector: Value 2003-2008
Table 5 Sales of Domestic Electrical Appliances by Sector: % Volume Growth 2003-2008
Table 6 Sales of Domestic Electrical Appliances by Sector: % Value Growth 2003-2008
Table 7 Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: Volume 2003-2008
Table 8 Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: Value 2003-2008
Table 9 Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: % Volume Growth 2003-2008
Table 10 Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: % Value Growth 2003-2008
Table 11 Company Shares of Large Kitchen Appliances 2004-2008
Table 12 Brand Shares of Large Kitchen Appliances 2005-2008
Table 13 Company Shares of Small Kitchen Appliances (Non-cooking) 2004-2008
Table 14 Brand Shares of Small Kitchen Appliances (Non-cooking) 2005-2008
Table 15 Large Kitchen Appliances by Distribution Format: % Breakdown 2003-2008
Table 16 Forecast Sales of Domestic Electrical Appliances by Sector: Volume 2008-2013
Table 17 Forecast Sales of Domestic Electrical Appliances by Sector: Value 2008-2013
Table 18 Forecast Sales of Domestic Electrical Appliances by Sector: % Volume Growth 2008-2013
Table 19 Forecast Sales of Domestic Electrical Appliances by Sector: % Value Growth 2008-2013
Table 20 Forecast Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: Volume 2008-2013
Table 21 Forecast Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: Value 2008-2013
Table 22 Forecast Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: % Volume Growth 2008-2013
Table 23 Forecast Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - MEXICO
COMERCIAL ACROS WHIRLPOOL SA DE CV - DOMESTIC ELECTRICAL APPLIANCES - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Comercial Acros Whirlpool SA de CV: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Comercial Acros Whirlpool SA de CV: Competitive Position 2008
CORPORACIóN MILENIUM - DOMESTIC ELECTRICAL APPLIANCES - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Corporación Milenium S.A. de C.V.: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Corporación Milenium S.A. de C.V.: Competitive Position 2008
LG ELECTRONICS MéXICO SA DE CV - DOMESTIC ELECTRICAL APPLIANCES - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 6 LG Electronics México S.A. de C.V.: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 LG Electronics México S.A. de C.V.: Competitive Position 2008
MABE SA - DOMESTIC ELECTRICAL APPLIANCES - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 8 MabeSA/General Electric Co: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 MabeSA/General Electric Co: Competitive Position 2008
SAMSUNG ELECTRONICS MéXICO SA DE CV - DOMESTIC ELECTRICAL APPLIANCES - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Samsung Electronics México, S.A. de C.V.: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 Samsung Electronics México, S.A. de C.V.: Competitive Position 2008
SUNBEAM MEXICANA SA DE CV - DOMESTIC ELECTRICAL APPLIANCES - MEXICO
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Sunbeam Mexicana S.A. de C.V.: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Sunbeam Mexicana S.A. de C.V.: Competitive Position 2008
REFRIGERATION APPLIANCES IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 Sales of Refrigeration Appliances by Subsector: Volume 2003-2008
Table 25 Sales of Refrigeration Appliances by Subsector: Value 2003-2008
Table 26 Sales of Refrigeration Appliances by Subsector: % Volume Growth 2003-2008
Table 27 Sales of Refrigeration Appliances by Subsector: % Value Growth 2003-2008
Table 28 Sales of Fridge Freezers by Format: % Breakdown 2004-2008
Table 29 Sales of Fridges by Format: % Breakdown 2004-2008
Table 30 Sales of Freezers by Format: % Breakdown 2004-2008
Table 31 Sales of Fridge Freezers by Volume Capacity: % Breakdown 2004-2008
Table 32 Sales of Fridges by Volume Capacity: % Breakdown 2004-2008
Table 33 Sales of Freezers by Volume Capacity: % Breakdown 2004-2008
Table 34 Sales of Electric Wine Coolers/Chillers by Format: % Breakdown 2004-2008
Table 35 Company Shares of Refrigeration Appliances 2004-2008
Table 36 Brand Shares of Refrigeration Appliances 2005-2008
Table 37 Company Shares of Freestanding Fridge Freezers 2004-2008
Table 38 Company Shares of Freestanding Fridges 2004-2008
Table 39 Forecast Sales of Refrigeration Appliances by Subsector: Volume 2008-2013
Table 40 Forecast Sales of Refrigeration Appliances by Subsector: Value 2008-2013
Table 41 Forecast Sales of Refrigeration Appliances by Subsector: % Volume Growth 2008-2013
Table 42 Forecast Sales of Refrigeration Appliances by Subsector: % Value Growth 2008-2013
HOME LAUNDRY APPLIANCES IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Sales of Home Laundry Appliances by Subsector: Volume 2003-2008
Table 44 Sales of Home Laundry Appliances by Subsector: Value 2003-2008
Table 45 Sales of Home Laundry Appliances by Subsector: % Volume Growth 2003-2008
Table 46 Sales of Home Laundry Appliances by Subsector: % Value Growth 2003-2008
Table 47 Sales of Automatic Washing Machines by Format: % Breakdown 2003-2008
Table 48 Sales of Automatic Washing Machines by Volume Capacity: % Breakdown 2005-2008
Table 49 Sales of AutomaticTumble Dryers by Format: % Breakdown 2004-2008
Table 50 Company Shares of Home Laundry Appliances 2004-2008
Table 51 Brand Shares of Home Laundry Appliances 2005-2008
Table 52 Forecast Sales of Home Laundry Appliances by Subsector: Volume 2008-2013
Table 53 Forecast Sales of Home Laundry Appliances by Subsector: Value 2008-2013
Table 54 Forecast Sales of Home Laundry Appliances by Subsector: % Volume Growth 2008-2013
Table 55 Forecast Sales of Home Laundry Appliances by Subsector: % Value Growth 2008-2013
DISHWASHERS IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 56 Sales of Dishwashers by Subsector: Volume 2003-2008
Table 57 Sales of Dishwashers by Subsector: Value 2003-2008
Table 58 Sales of Dishwashers by Subsector: % Volume Growth 2003-2008
Table 59 Sales of Dishwashers by Subsector: % Value Growth 2003-2008
Table 60 Sales of Dishwashers by Format: % Breakdown 2004-2008
Table 61 Company Shares of Dishwashers 2004-2008
Table 62 Brand Shares of Dishwashers 2005-2008
Table 63 Forecast Sales of Dishwashers by Subsector: Volume 2008-2013
Table 64 Forecast Sales of Dishwashers by Subsector: Value 2008-2013
Table 65 Forecast Sales of Dishwashers by Subsector: % Volume Growth 2008-2013
Table 66 Forecast Sales of Dishwashers by Subsector: % Value Growth 2008-2013
LARGE COOKING APPLIANCES IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 67 Sales of Large Cooking Appliances by Subsector: Volume 2003-2008
Table 68 Sales of Large Cooking Appliances by Subsector: Value 2003-2008
Table 69 Sales of Large Cooking Appliances by Subsector: % Volume Growth 2003-2008
Table 70 Sales of Large Cooking Appliances by Subsector: % Value Growth 2003-2008
Table 71 Sales of Cookers by Gas/Electric: % Breakdown 2003-2008
Table 72 Sales of Ovens by Standard/Multifunctional: % Breakdown 2003-2008
Table 73 Sales of Built-in Hobs by Format: % Breakdown 2003-2008
Table 74 Sales of Freestanding Hobs by Format: % Breakdown 2003-2008
Table 75 Company Shares of Large Cooking Appliances 2004-2008
Table 76 Brand Shares of Large Cooking Appliances 2005-2008
Table 77 Company Shares of Cookers 2004-2008
Table 78 Company Shares of Ovens 2004-2008
Table 79 Company Shares of Hobs 2004-2008
Table 80 Company Shares of Built-in Hobs 2004-2008
Table 81 Company Shares of Freestanding Hobs 2004-2008
Table 82 Company Shares of Cooker Hoods 2004-2008
Table 83 Company Shares of Built-in Cooker Hoods 2004-2008
Table 84 Company Shares of Freestanding Cooker Hoods 2004-2008
Table 85 Forecast Sales of Large Cooking Appliances by Subsector: Volume 2008-2013
Table 86 Forecast Sales of Large Cooking Appliances by Subsector: Value 2008-2013
Table 87 Forecast Sales of Large Cooking Appliances by Subsector: % Volume Growth 2008-2013
Table 88 Forecast Sales of Large Cooking Appliances by Subsector: % Value Growth 2008-2013
MICROWAVES IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 89 Sales of Microwaves by Subsector: Volume 2003-2008
Table 90 Sales of Microwaves by Subsector: Value 2003-2008
Table 91 Sales of Microwaves by Subsector: % Volume Growth 2003-2008
Table 92 Sales of Microwaves by Subsector: % Value Growth 2003-2008
Table 93 Company Shares of Microwaves 2004-2008
Table 94 Brand Shares of Microwaves 2005-2008
Table 95 Microwaves by Distribution Format: % Analysis 2003-2008
Table 96 Forecast Sales of Microwaves by Subsector: Volume 2008-2013
Table 97 Forecast Sales of Microwaves by Subsector: Value 2008-2013
Table 98 Forecast Sales of Microwaves by Subsector: % Volume Growth 2008-2013
Table 99 Forecast Sales of Microwaves by Subsector: % Value Growth 2008-2013
FOOD PREPARATION APPLIANCES IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 100 Sales of Food Preparation Appliances by Subsector: Volume 2003-2008
Table 101 Sales of Food Preparation Appliances by Subsector: Value 2003-2008
Table 102 Sales of Food Preparation Appliances by Subsector: % Volume Growth 2003-2008
Table 103 Sales of Food Preparation Appliances by Subsector: % Value Growth 2003-2008
Table 104 Company Shares of Food Preparation Appliances 2004-2008
Table 105 Brand Shares of Food Preparation Appliances 2005-2008
Table 106 Forecast Sales of Food Preparation Appliances by Subsector: Volume 2008-2013
Table 107 Forecast Sales of Food Preparation Appliances by Subsector: Value 2008-2013
Table 108 Forecast Sales of Food Preparation Appliances by Subsector: % Volume Growth 2008-2013
Table 109 Forecast Sales of Food Preparation Appliances by Subsector: % Value Growth 2008-2013
SMALL COOKING APPLIANCES IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 110 Sales of Small Cooking Appliances by Subsector: Volume 2003-2008
Table 111 Sales of Small Cooking Appliances by Subsector: Value 2003-2008
Table 112 Sales of Small Cooking Appliances by Subsector: % Volume Growth 2003-2008
Table 113 Sales of Small Cooking Appliances by Subsector: % Value Growth 2003-2008
Table 114 Unit Sales of Coffee Machines by Format: % Breakdown 2004-2008
Table 115 Company Shares of Small Cooking Appliances 2004-2008
Table 116 Brand Shares of Small Cooking Appliances 2005-2008
Table 117 Forecast Sales of Small Cooking Appliances by Subsector: Volume 2008-2013
Table 118 Forecast Sales of Small Cooking Appliances by Subsector: Value 2008-2013
Table 119 Forecast Sales of Small Cooking Appliances by Subsector: % Volume Growth 2008-2013
Table 120 Forecast Sales of Small Cooking Appliances by Subsector: % Value Growth 2008-2013
SMALL KITCHEN APPLIANCES (NON-COOKING) IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 121 Sales of Small Kitchen Appliances (Non-cooking) by Subsector: Volume 2003-2008
Table 122 Sales of Small Kitchen Appliances (Non-cooking) by Subsector: Value 2003-2008
Table 123 Sales of Small Kitchen Appliances (Non-cooking) by Subsector: % Volume Growth 2003-2008
Table 124 Sales of Small Kitchen Appliances (Non-cooking) by Subsector: % Value Growth 2003-2008
Table 125 Company Shares of Small Kitchen Appliances (Non-cooking) 2004-2008
Table 126 Brand Shares of Small Kitchen Appliances (Non-cooking) 2005-2008
Table 127 Forecast Sales of Small Kitchen Appliances (Non-cooking) by Subsector: Volume 2008-2013
Table 128 Forecast Sales of Small Kitchen Appliances (Non-cooking) by Subsector: Value 2008-2013
Table 129 Forecast Sales of Small Kitchen Appliances (Non-cooking) by Subsector: % Volume Growth 2008-2013
Table 130 Forecast Sales of Small Kitchen Appliances (Non-cooking) by Subsector: % Value Growth 2008-2013
VACUUM CLEANERS IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 131 Sales of Vacuum Cleaners by Subsector: Volume 2003-2008
Table 132 Sales of Vacuum Cleaners by Subsector: Value 2003-2008
Table 133 Sales of Vacuum Cleaners by Subsector: % Volume Growth 2003-2008
Table 134 Sales of Vacuum Cleaners by Subsector: % Value Growth 2003-2008
Table 135 Unit Sales of Vacuum Cleaners by Format: % Breakdown 2004-2008
Table 136 Unit Sales of Vacuum Cleaners by Power Source: % Breakdown 2004-2008
Table 137 Company Shares of Vacuum Cleaners 2004-2008
Table 138 Brand Shares of Vacuum Cleaners 2005-2008
Table 139 Forecast Sales of Vacuum Cleaners by Subsector: Volume 2008-2013
Table 140 Forecast Sales of Vacuum Cleaners by Subsector: Value 2008-2013
Table 141 Forecast Sales of Vacuum Cleaners by Subsector: % Volume Growth 2008-2013
Table 142 Forecast Sales of Vacuum Cleaners by Subsector: % Value Growth 2008-2013
IRONS IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 143 Sales of Irons: 2003-2008
Table 144 Sales of Irons: % Growth 2003-2008
Table 145 Unit Sales of Irons by Format: % Breakdown 2004-2008
Table 146 Company Shares of Irons 2004-2008
Table 147 Brand Shares of Irons 2005-2008
Table 148 Forecast Sales of Irons: 2008-2013
Table 149 Forecast Sales of Irons: % Growth 2008-2013
PERSONAL CARE APPLIANCES IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 150 Sales of Personal Care Appliances: 2003-2008
Table 151 Sales of Personal Care Appliances: % Growth 2003-2008
Table 152 Sales of Hair Care Appliances by Format: % Breakdown 2003-2008
Table 153 Sales of Body Shavers by Type: % Breakdown 2003-2008
Table 154 Company Shares of Personal Care Appliances 2004-2008
Table 155 Brand Shares of Personal Care Appliances 2005-2008
Table 156 Forecast Sales of Personal Care Appliances: 2008-2013
Table 157 Forecast Sales of Personal Care Appliances: % Growth 2008-2013
AIR TREATMENT PRODUCTS IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 158 Sales of Air Treatment Products: 2003-2008
Table 159 Sales of Air Treatment Products: % Growth 2003-2008
Table 160 Company Shares of Air Treatment Products 2004-2008
Table 161 Brand Shares of Air Treatment Products 2005-2008
Table 162 Forecast Sales of Air Treatment Products: 2008-2013
Table 163 Forecast Sales of Air Treatment Products: % Growth 2008-2013
HEATING APPLIANCES IN MEXICO
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 164 Retail Sales of Heating Appliances: 2003-2008
Table 165 Retail Sales of Heating Appliances: % Growth 2003-2008
Table 166 Company Shares of Heating Appliances 2004-2008
Table 167 Brand Shares of Heating Appliances 2005-2008
Table 168 Forecast Sales of Heating Appliances: 2008-2013
Table 169 Forecast Sales of Heating Appliances: % Growth 2008-2013