Domestic Electrical Appliances in South Africa
Euromonitor International's Domestic Electrical Appliances in South Africa 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.
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Tables: 181 | Publication date: Jan 2008
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- Get insight into trends in market performance
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Product coverage
Large kitchen appliances; Small electrical appliances
Executive summary
Building Boom Coupled with Successful 2010 FIFA Bid will continue to Promote Economic Growth
South Africa has been through a period of economic stability and experienced a building boom in both business and housing development. Over the past few years, there has been an urban shift in big city municipalities with the central business districts moving out of the crime-ridden city centres and moving to the outskirts. New office and retail buildings and blocks were built. The government has also implemented many programmes to bring low costing housing, electricity and water to people with previously disadvantaged backgrounds. The black majority, which is around 88% of the population, falls into this category and with these amenities has come a demand for domestic electrical appliances (DEA). Furthermore, the success of the recent FIFA world cup bid, has ensured the continuation of the building boom as the need for new (better) infrastructure has been highlighted by FIFA including upgrading hotels, accommodation facilities and service industries. This building expansion will also involve an increased demand for DEA products.
The main growth in the DEA market is likely to come from larger basic appliances such as refrigeration, home laundry and cooking appliances. A percentage of this growth can be directly linked the hosting the world cup, especially over the forecast period.
Rise of Black Lower and Middle Income Groups help DEA Growth
The strength of the economy has also lead to an increase in personal wealth and disposable income and the start of a consumer society. Since the end of Apartheid and with the African National Congress (ANC) coming to power in 1994, government and business alike have implemented a strong policy of black economic empowerment and equality in the workplace. This policy has been the leading factor for the increase in disposable income among the black majority, resulting in the rise of a black middle-income group as well as allowing lower income brackets to enter the DEA market.
The new black middle-income group is definitely the most dominant group relating to demand in the DEA market in South Africa. As this group grows, so does the consumer base of the DEA market and this has helped demand to grow tremendously. However, due to the majority of this group being first time buyers, most of the sales related to this group will be units from the entry-level to medium price product range, particularly with larger appliances.
Prices Remain Relatively Stable
There are a number of factors that have an affect on the South African DEA market. The Rand strength is generally the biggest factor affecting import prices. In 2006, the Rand weakened significantly in the first financial quarter but then stabilised and regained some of its demand. Furthermore, there has been a worldwide increase in the price of raw materials. However, this has been coupled with an increase in cheaper imports from the Far East which seems to have offset price increases.
Cheap imports have helped the DEA market grow as consumers can more easily afford imported units on the shelves. Imports have increased the level of competition in the DEA market, as overseas companies are able to be more competitive. With the Rand strong, consumers have more purchasing power which has certainly been an added factor in the growth of the DEA market. The DEA market has seen good sales as the economy remains relatively stable compared with overseas economies.
Foreign Products Slowly Gain Ground on Local Players
Foreign products particularly those manufactured in the Far East have gained value-share over local suppliers. Although they have not been big gains, they could be considered significant in terms of the future direction of the DEA market. Even with import tariffs, many foreign appliances can be sold at highly competitive prices and it is hard for domestic production to compete with overseas production costs. Furthermore, international companies generally have the wealth to put more capital towards research, product development and advertising. Locally based companies must rely more on product name. However, it is still much easier and cheaper to replace parts for local companies which is a buying point.
Since the average South African consumer tends to be more focused on price than brand loyalty, consumers have switched to foreign products which are more price competitive. Competition has exploded in recent years, and local players need to come up with innovative products and marketing in order to compete with pricing competition from foreign companies. However, local players in the DEA market have still managed to keep their company shares up by offering better warranties on their products, as it is cheaper for them to repair locally.
Defy Maintains Grip on Large Domestic Appliances
Defy Appliances Ltd has been a major player in the South African Domestic Electrical appliance market for over 60 years. They use this to their advantage as they continue to dominate the South African market. Although foreign companies have gained ground and have eaten into Defy’s massive lead. The main reason for Defy’s success lies in its distribution policies, appliance repair facilities and long-standing knowledge of the business. Furthermore, Defy has a big following in terms of brand loyalty and use the slogan “You can rely on Defy”. Defy has made various networks in distribution and multiple repair facilities across the country, whilst other newer companies are still trying to establish their various networks. Knowing that your Defy appliance will be cheaper to repair should it break has been a big asset to the company. Furthermore because they have an established network of repair outlets, they can offer better guarantees than some of the other companies.
Table of contents
DOMESTIC ELECTRICAL APPLIANCES IN SOUTH AFRICA : MARKET INSIGHT
EXECUTIVE SUMMARY
Building Boom Coupled with Successful 2010 FIFA Bid will continue to Promote Economic Growth
Rise of Black Lower and Middle Income Groups help DEA Growth
Prices Remain Relatively Stable
Foreign Products Slowly Gain Ground on Local Players
Defy Maintains Grip on Large Domestic Appliances
KEY TRENDS AND DEVELOPMENTS
Economic Overview
Increase in Cheaper Chinese Imports
Increase in Disposable Income and Rise of Black Lower and Middle Income Groups
The Housing and Building Boom continues
Continued Drive for Energy Saving Appliances
MARKET INDICATORS
Table 1 Household Penetration of Selected Total Stock Domestic Electrical Appliances by Sector/Subsector 2001-2006
Table 2 Replacement Cycles of Domestic Electrical Appliances by Sector 2006
MARKET DATA
Table 3 Sales of Domestic Electrical Appliances by Sector: Volume 2001-2006
Table 4 Sales of Domestic Electrical Appliances by Sector: Value 2001-2006
Table 5 Sales of Domestic Electrical Appliances by Sector: % Volume Growth 2001-2006
Table 6 Sales of Domestic Electrical Appliances by Sector: % Value Growth 2001-2006
Table 7 Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: Volume 2001-2006
Table 8 Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: Value 2001-2006
Table 9 Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: % Volume Growth 2001-2006
Table 10 Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: % Value Growth 2001-2006
Table 11 Company Shares of Large Kitchen Appliances 2002-2006
Table 12 Brand Shares of Large Kitchen Appliances 2003-2006
Table 13 Company Shares of Small Kitchen Appliances (Non-cooking) 2002-2006
Table 14 Brand Shares of Small Kitchen Appliances (Non-cooking) 2003-2006
Table 15 Large Kitchen Appliances by Distribution Format: % Breakdown 2001-2006
Table 16 Forecast Sales of Domestic Electrical Appliances by Sector: Volume 2006-2011
Table 17 Forecast Sales of Domestic Electrical Appliances by Sector: Value 2006-2011
Table 18 Forecast Sales of Domestic Electrical Appliances by Sector: % Volume Growth 2006-2011
Table 19 Forecast Sales of Domestic Electrical Appliances by Sector: % Value Growth 2006-2011
Table 20 Forecast Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: Volume 2006-2011
Table 21 Forecast Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: Value 2006-2011
Table 22 Forecast Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: % Volume Growth 2006-2011
Table 23 Forecast Sales of Large Kitchen Appliances by Sector and by Built-in/Freestanding Split: % Value Growth 2006-2011
DEFINITIONS
Sector and subsector definitions
Distribution definitions
Units of measurement
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - SOUTH AFRICA
AMALGAMATED APPLIANCE HOLDINGS (PTY) LTD - DOMESTIC ELECTRICAL APPLIANCES - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Amalgamated Appliance Holdings (Pty) Ltd: Key Facts
Summary 3 Amalgamated Appliance Holdings (Pty) Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Amalgamated Appliance Holdings (Pty) Ltd: Competitive Position 2006
DEFY APPLIANCES LTD - DOMESTIC ELECTRICAL APPLIANCES - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Defy Appliances Ltd: Key Facts
Summary 6 Defy Appliances Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 7 Defy Appliances Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 8 Defy Appliances Ltd: Competitive Position 2006
KENWOOD HOME APPLIANCES PTY LTD - DOMESTIC ELECTRICAL APPLIANCES - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Kenwood Home Appliances Pty Ltd: Key Facts
Summary 10 Kenwood Home Appliances Pty Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 11 Kenwood Home Appliances Pty Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 12 Kenwood Home Appliances Pty Ltd: Competitive Position 2006
LG ELECTRONICS SA PTY LTD - DOMESTIC ELECTRICAL APPLIANCES - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 LG Electronics SA Pty Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 14 LG Electronics SA Pty Ltd: Competitive Position 2006
NU-WORLD HOLDINGS LTD - DOMESTIC ELECTRICAL APPLIANCES - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Nu-World Holdings Ltd: Key Facts
Summary 16 Nu-World Holdings Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 17 Nu-World Holdings Ltd: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 18 Nu-World Holdings Ltd: Competitive Position 2006
REFRIGERATION APPLIANCES IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 Sales of Refrigeration Appliances by Subsector: Volume 2001-2006
Table 25 Sales of Refrigeration Appliances by Subsector: Value 2001-2006
Table 26 Sales of Refrigeration Appliances by Subsector: % Volume Growth 2001-2006
Table 27 Sales of Refrigeration Appliances by Subsector: % Value Growth 2001-2006
Table 28 Sales of Fridge Freezers by Format: % Breakdown 2003-2006
Table 29 Sales of Fridges by Format: % Breakdown 2003-2006
Table 30 Sales of Freezers by Format: % Breakdown 2003-2006
Table 31 Company Shares of Refrigeration Appliances 2002-2006
Table 32 Brand Shares of Refrigeration Appliances 2003-2006
Table 33 Company Shares of Built-in Fridge Freezers 2002-2006
Table 34 Company Shares of Freestanding Fridge Freezers 2002-2006
Table 35 Company Shares of Built-in Fridges 2002-2006
Table 36 Company Shares of Freestanding Fridges 2002-2006
Table 37 Forecast Sales of Refrigeration Appliances by Subsector: Volume 2006-2011
Table 38 Forecast Sales of Refrigeration Appliances by Subsector: Value 2006-2011
Table 39 Forecast Sales of Refrigeration Appliances by Subsector: % Volume Growth 2006-2011
Table 40 Forecast Sales of Refrigeration Appliances by Subsector: % Value Growth 2006-2011
HOME LAUNDRY APPLIANCES IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 41 Sales of Home Laundry Appliances by Subsector: Volume 2001-2006
Table 42 Sales of Home Laundry Appliances by Subsector: Value 2001-2006
Table 43 Sales of Home Laundry Appliances by Subsector: % Volume Growth 2001-2006
Table 44 Sales of Home Laundry Appliances by Subsector: % Value Growth 2001-2006
Table 45 Sales of Automatic Washing Machines by Format: % Breakdown 2001-2006
Table 46 Company Shares of Home Laundry Appliances 2002-2006
Table 47 Brand Shares of Home Laundry Appliances 2003-2006
Table 48 Forecast Sales of Home Laundry Appliances by Subsector: Volume 2006-2011
Table 49 Forecast Sales of Home Laundry Appliances by Subsector: Value 2006-2011
Table 50 Forecast Sales of Home Laundry Appliances by Subsector: % Volume Growth 2006-2011
Table 51 Forecast Sales of Home Laundry Appliances by Subsector: % Value Growth 2006-2011
DISHWASHERS IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 52 Sales of Dishwashers by Subsector: Volume 2001-2006
Table 53 Sales of Dishwashers by Subsector: Value 2001-2006
Table 54 Sales of Dishwashers by Subsector: % Volume Growth 2001-2006
Table 55 Sales of Dishwashers by Subsector: % Value Growth 2001-2006
Table 56 Company Shares of Dishwashers 2002-2006
Table 57 Brand Shares of Dishwashers 2003-2006
Table 58 Forecast Sales of Dishwashers by Subsector: Volume 2006-2011
Table 59 Forecast Sales of Dishwashers by Subsector: Value 2006-2011
Table 60 Forecast Sales of Dishwashers by Subsector: % Volume Growth 2006-2011
Table 61 Forecast Sales of Dishwashers by Subsector: % Value Growth 2006-2011
LARGE COOKING APPLIANCES IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Sales of Large Cooking Appliances by Subsector: Volume 2001-2006
Table 63 Sales of Large Cooking Appliances by Subsector: Value 2001-2006
Table 64 Sales of Large Cooking Appliances by Subsector: % Volume Growth 2001-2006
Table 65 Sales of Large Cooking Appliances by Subsector: % Value Growth 2001-2006
Table 66 Sales of Cookers by Gas/Electric: % Breakdown 2001-2006
Table 67 Sales of Ovens by Standard/Multifunctional: % Breakdown 2001-2006
Table 68 Sales of Built-in Hobs by Format: % Breakdown 2001-2006
Table 69 Sales of Freestanding Hobs by Format: % Breakdown 2001-2006
Table 70 Company Shares of Large Cooking Appliances 2002-2006
Table 71 Brand Shares of Large Cooking Appliances 2003-2006
Table 72 Company Shares of Cookers 2002-2006
Table 73 Company Shares of Ovens 2002-2006
Table 74 Company Shares of Hobs 2002-2006
Table 75 Company Shares of Built-in Hobs 2002-2006
Table 76 Company Shares of Freestanding Hobs 2002-2006
Table 77 Company Shares of Cooker Hoods 2002-2006
Table 78 Company Shares of Built-in Cooker Hoods 2002-2006
Table 79 Company Shares of Freestanding Cooker Hoods 2002-2006
Table 80 Forecast Sales of Large Cooking Appliances by Subsector: Volume 2006-2011
Table 81 Forecast Sales of Large Cooking Appliances by Subsector: Value 2006-2011
Table 82 Forecast Sales of Large Cooking Appliances by Subsector: % Volume Growth 2006-2011
Table 83 Forecast Sales of Large Cooking Appliances by Subsector: % Value Growth 2006-2011
MICROWAVES IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 84 Sales of Microwaves by Subsector: Volume 2001-2006
Table 85 Sales of Microwaves by Subsector: Value 2001-2006
Table 86 Sales of Microwaves by Subsector: % Volume Growth 2001-2006
Table 87 Sales of Microwaves by Subsector: % Value Growth 2001-2006
Table 88 Company Shares of Microwaves 2002-2006
Table 89 Brand Shares of Microwaves 2003-2006
Table 90 Microwaves by Distribution Format: % Analysis 2001-2006
Table 91 Forecast Sales of Microwaves by Subsector: Volume 2006-2011
Table 92 Forecast Sales of Microwaves by Subsector: Value 2006-2011
Table 93 Forecast Sales of Microwaves by Subsector: % Volume Growth 2006-2011
Table 94 Forecast Sales of Microwaves by Subsector: % Value Growth 2006-2011
FOOD PREPARATION APPLIANCES IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 95 Sales of Food Preparation Appliances by Subsector: Volume 2001-2006
Table 96 Sales of Food Preparation Appliances by Subsector: Value 2001-2006
Table 97 Sales of Food Preparation Appliances by Subsector: % Volume Growth 2001-2006
Table 98 Sales of Food Preparation Appliances by Subsector: % Value Growth 2001-2006
Table 99 Company Shares of Food Preparation Appliances 2002-2006
Table 100 Brand Shares of Food Preparation Appliances 2003-2006
Table 101 Forecast Sales of Food Preparation Appliances by Subsector: Volume 2006-2011
Table 102 Forecast Sales of Food Preparation Appliances by Subsector: Value 2006-2011
Table 103 Forecast Sales of Food Preparation Appliances by Subsector: % Volume Growth 2006-2011
Table 104 Forecast Sales of Food Preparation Appliances by Subsector: % Value Growth 2006-2011
SMALL COOKING APPLIANCES IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 105 Sales of Small Cooking Appliances by Subsector: Volume 2001-2006
Table 106 Sales of Small Cooking Appliances by Subsector: Value 2001-2006
Table 107 Sales of Small Cooking Appliances by Subsector: % Volume Growth 2001-2006
Table 108 Sales of Small Cooking Appliances by Subsector: % Value Growth 2001-2006
Table 109 Unit Sales of Coffee Machines by Format: % Breakdown 2003-2006
Table 110 Company Shares of Small Cooking Appliances 2002-2006
Table 111 Brand Shares of Small Cooking Appliances 2003-2006
Table 112 Forecast Sales of Small Cooking Appliances by Subsector: Volume 2006-2011
Table 113 Forecast Sales of Small Cooking Appliances by Subsector: Value 2006-2011
Table 114 Forecast Sales of Small Cooking Appliances by Subsector: % Volume Growth 2006-2011
Table 115 Forecast Sales of Small Cooking Appliances by Subsector: % Value Growth 2006-2011
SMALL KITCHEN APPLIANCES (NON-COOKING) IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 116 Sales of Small Kitchen Appliances (Non-cooking) by Subsector: Volume 2001-2006
Table 117 Sales of Small Kitchen Appliances (Non-cooking) by Subsector: Value 2001-2006
Table 118 Sales of Small Kitchen Appliances (Non-cooking) by Subsector: % Volume Growth 2001-2006
Table 119 Sales of Small Kitchen Appliances (Non-cooking) by Subsector: % Value Growth 2001-2006
Table 120 Company Shares of Small Kitchen Appliances (Non-cooking) 2002-2006
Table 121 Brand Shares of Small Kitchen Appliances (Non-cooking) 2003-2006
Table 122 Forecast Sales of Small Kitchen Appliances (Non-cooking) by Subsector: Volume 2006-2011
Table 123 Forecast Sales of Small Kitchen Appliances (Non-cooking) by Subsector: Value 2006-2011
Table 124 Forecast Sales of Small Kitchen Appliances (Non-cooking) by Subsector: % Volume Growth 2006-2011
Table 125 Forecast Sales of Small Kitchen Appliances (Non-cooking) by Subsector: % Value Growth 2006-2011
VACUUM CLEANERS IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 126 Sales of Vacuum Cleaners by Subsector: Volume 2001-2006
Table 127 Sales of Vacuum Cleaners by Subsector: Value 2001-2006
Table 128 Sales of Vacuum Cleaners by Subsector: % Volume Growth 2001-2006
Table 129 Sales of Vacuum Cleaners by Subsector: % Value Growth 2001-2006
Table 130 Unit Sales of Vacuum Cleaners by Format: % Breakdown 2003-2006
Table 131 Unit Sales of Vacuum Cleaners by Power Source: % Breakdown 2003-2006
Table 132 Company Shares of Vacuum Cleaners 2002-2006
Table 133 Brand Shares of Vacuum Cleaners 2003-2006
Table 134 Forecast Sales of Vacuum Cleaners by Subsector: Volume 2006-2011
Table 135 Forecast Sales of Vacuum Cleaners by Subsector: Value 2006-2011
Table 136 Forecast Sales of Vacuum Cleaners by Subsector: % Volume Growth 2006-2011
Table 137 Forecast Sales of Vacuum Cleaners by Subsector: % Value Growth 2006-2011
IRONS IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 138 Sales of Irons: 2001-2006
Table 139 Sales of Irons: % Growth 2001-2006
Table 140 Company Shares of Irons 2002-2006
Table 141 Brand Shares of Irons 2003-2006
Table 142 Forecast Sales of Irons: 2006-2011
Table 143 Forecast Sales of Irons: % Growth 2006-2011
PERSONAL CARE APPLIANCES IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 144 Sales of Personal Care Appliances: 2001-2006
Table 145 Sales of Personal Care Appliances: % Growth 2001-2006
Table 146 Sales of Hair Care Appliances by Format: % Breakdown 2001-2006
Table 147 Sales of Body Shavers by Type: % Breakdown 2001-2006
Table 148 Company Shares of Personal Care Appliances 2002-2006
Table 149 Brand Shares of Personal Care Appliances 2003-2006
Table 150 Forecast Sales of Personal Care Appliances: 2006-2011
Table 151 Forecast Sales of Personal Care Appliances: % Growth 2006-2011
AIR TREATMENT PRODUCTS IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 152 Sales of Air Treatment Products: 2001-2006
Table 153 Sales of Air Treatment Products: % Growth 2001-2006
Table 154 Company Shares of Air Treatment Products 2002-2006
Table 155 Brand Shares of Air Treatment Products 2003-2006
Table 156 Forecast Sales of Air Treatment Products: 2006-2011
Table 157 Forecast Sales of Air Treatment Products: % Growth 2006-2011
HEATING APPLIANCES IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 158 Retail Sales of Heating Appliances: 2001-2006
Table 159 Retail Sales of Heating Appliances: % Growth 2001-2006
Table 160 Company Shares of Heating Appliances 2002-2006
Table 161 Brand Shares of Heating Appliances 2003-2006
Table 162 Forecast Sales of Heating Appliances: 2006-2011
Table 163 Forecast Sales of Heating Appliances: % Growth 2006-2011