China’s struggles with the Omicron variant across much of the year meant that sales of major appliances declined in 2022, resulting in slightly negative growth for the Asia Pacific region as a whole, given the size of this country’s market. However, positive growth is expected throughout the forecast period, with India slated to record a particularly dynamic performance in the coming years, helped by population growth and the still low penetration rates for many major appliances in this country.
This report comes in PPT.
The Chinese market, after seeing a recovery in 2021 from the initial impact of COVID-19 in 2020, slipped back into decline in 2022 as Omicron rampaged across the country, seeing whole cities and regions locked down for extended periods. Going forward, positive growth is expected for China, albeit with high penetration rates and the lasting economic impact of the pandemic likely to put downward pressure on sales in the coming years.
Considering the low penetration rates of most major appliances, there is significant room for growth in India. Growing awareness, rising incomes, better accessibility, wider product availability and the need for convenience are expected to support growth moving forward. However, sales will continue flatlining in Japan, where a shrinking population is among the problems facing major appliances, although time-saving is becoming more important to Japanese consumers once again, as busier lifestyles return post-pandemic.
Smart products generally still account for very small shares of sales across Asia Pacific countries, but are an area of the market that offer potential for future growth. The popularisation of connectivity for appliances will lead replacement upgrades as smart products become more affordable in China, meeting the demand for multifunctional, efficient and connected devices. The creation of ecosystems of smart appliances and mobile devices will be key for leading brands to distinguish themselves from routine functional upgrades.
In terms of distribution of major appliances, e-commerce reached a share of 35% in 2022 regionally and has become the main sales channel in China, accounting for almost half of the retail unit volumes sold in this year. While a presence on online retailing and sharing platforms will continue to be key in an age of digital marketing, with appliances and electronics specialists still the main channel is most countries, maintaining the delicate balance between e-commerce and offline retail channels will also be important for industry players in the coming years.
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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