Consumer Appliances: Quarterly Statement Q3 2021

October 2021

Sales of consumer appliances are projected to recover in 2021, after consumer sentiment was badly affected by the pandemic. In 2021, sales of both major and small appliances are expected to exceed those in 2019.

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Key findings

Sales of consumer appliances expected to recover in 2021

Sales of consumer appliances are projected to recover in 2021, after a decline in 2020. The markets for both major and small appliances, in terms of unit shipments, are expected to exceed 2019 levels.

Mostly positive increases between the latest baseline forecasts and previous
(Q3 vs Q2 2021)

Our model shows an improving macroeconomic environment, lifting our 2021 and future forecasts. Projections are for a 2% increase from Q2 to Q3 baseline numbers. However, this could be affected by a number of factors, including a resurgence of COVID-19, inflation, continued logistics cost increases, and even the Evergrande debt crisis.

Companies are innovating in their sales channels

Chinese companies are leading the distribution innovation race. E-commerce giants, such as JD and Alibaba’s Tmall, are focusing on appliances as one of their next growth sectors. They are partnering with appliance brands and providing no-hassle returns, easy credit and extended warranties on major appliances bought on their platforms. Additionally, JD has launched an interactive mall to provide consumers with experiential product journeys before they make their purchase.

Historically high copper prices are forcing a redesign of air conditioners

With copper prices at historic highs and expected to remain elevated, companies are looking at significant redesigns of their air conditioners. In Daikin’s May 2021 conference call with investors, it announced plans to halve its copper usage in products by fiscal year 2024.

Supply chain issues continue to push up prices

Container freight rates are up more than 350% year-on-year. Prices of critical raw materials, such as copper and steel, have plateaued at historic highs, but show no signs of decreasing. These factors pushed consumer appliance prices up at the beginning of the year, and have significantly disrupted supply chains.

Introduction

Scope
Key findings

Q3 2021 Consumer Appliances Update

Market expected to recover and exceed 2019 size
Hygiene, kitchen and small appliances continue to see strong growth
Automatic washer dryers: Continued focus on hygiene
Freestanding large cooking appliances are seeing a short-term boost
Consumers continue to spend on personal care appliances while at home
Consumers are spending money to save time cleaning the home
Consumers continue to experiment with small cooking appliances
Consumers are investing in their at-home coffee experience
Chinese e-commerce platforms see appliances as a growth sector
Online share of consumer appliances in China exceeded 50% in 2020
Historically high copper prices are forcing a redesign of air conditioners
Window air conditioners becoming mainstream in South Korea
Built-in induction hobs is a high-growth category
Premiumisation opportunities for coffee machines

Q3 2021 Macroeconomic Update

Strong global economic recovery underway
Downside risk factors remain significant
Real GDP annual growth forecasts and revisions from last quarter, AE
Real GDP annual growth forecasts and revisions from last quarter, EMDE

About Our Industry Forecast Model

About consumer appliances forecast updates
Euromonitor International and COVID-19: Forecasts and analysis
Consumer appliances: Reporting timeline
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