Despite a positive economic performance, progress in social indexes such as the unemployment rate and consumer credit default rates and inflation stability, the performance of consumer appliances in the review period was marked with volatility and uncertainty about the future. Internally, presidential elections and political reforms were the focus of 2018, with most events concentrating on these issues and defining what the next four years will be like for the Brazilian economy.
Despite all the negative factors mentioned above, consumer appliances still posted growth both in volume and current value terms in 2018. Even large cooking appliances, the only category to post a decline in volume sales, increased in current value terms.
Consumer appliances overall is fragmented, with balanced participation from domestic and international companies. Major appliances categories tend to be dominated by international manufacturers, most notably Electrolux do Brasil and Whirlpool.
Consumer appliances is gaining an online presence, as big store-based retailers are investing in internet and mobile retailing. Traditional Brazilian stores such as Magazine Luiza, B2W and Via Varejo, for example, have propelled this trend by enhancing and advertising their own marketplaces to third-party merchants, which has shown results.
Consumer appliances is expected to maintain a good performance over the forecast period, with reasonable volume growth and even higher current value growth, partly due to the progressive increase in unit prices during the forecast period. Penetration remains below capacity in all categories, representing ongoing opportunities for manufacturers to sell their appliances.
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This industry report originates from Passport, our Consumer Appliances market research database.