Demand Volatility in The Consumer Appliances Market In 2020 – A Follow on Report

July 2021

2020 was a volatile year for the consumer appliances industry. In March 2020, most companies were focused on cost cutting, not knowing that demand would increase exponentially in Q3 and Q4. Our research in 2020 was not able to fully capture this uptick. Therefore we conducted additional research in March & April 2021 to fine tune our data. The following is our report of this exercise.

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2020 consumer appliance overview

2020 sales backloaded

While sales were impacted in H1 2020 due to the various lockdowns, most consumer appliance sales occurred in H2 2020, with stimulus cheques, home sales and upgrading driving the market.

Demand drivers

Major appliance companies provided grim or no guidance for 2020 when the pandemic hit; however, most, if not all, companies exceeded this guidance by the end of the year.

Historic low interest rates and stamp duty holidays (eg in the UK) contributed to robust housing markets in major countries, which has continued into Q1 2021.

Loose monetary policy has kept interest rates at record lows. This has not only helped with low mortgage rates, but also enabled consumers to purchase major appliances at competitive interest rates.

Stimulus cheques plus consumers’ inability to spend on indulgences such as holidays and outdoor activities have led to more spending on appliances.

Supply chain challenges

Logistics of shipping goods is reaching a breaking point with ports being overwhelmed, freight costs rising and accidents. For example, the Ever Given container ship temporarily ran aground in the Suez Canal in late March 2021.

Increasing raw material prices as well as a semiconductor shortage could significantly curtail supply in the next few quarters.

Consumers focus on hygiene-related appliances

2020 saw the emergence of products designed for the COVID-19 environment, including LG’s battery-powered face mask, Hoover’s H-abitat and indoor farming appliances.

Buying appliances online

Stay-at-home consumers bought a record number of appliances through e-commerce channels, the majority being small appliances.

Introduction

Scope
2020 consumer appliance overview

Background

2020 in the making: Global consumer appliances market
Fluctuating year for companies
Consumer appliances May 2021 data revision exercise
Consumer appliances in context (revised in June 2021)

Major Appliances Update

Major appliances May 2021 data revision exercise
Major appliances market declines, but not as much as expected
Major appliances: Growth and per household consumption by category
Overview: Region size and growth by category in 2020
Overview: Category size and growth by region in 2020
Electronics and appliance specialist retailers remains the leading channel
Examining five trends shaping major appliances

Small Appliances Update

Small appliances May 2021 data revision exercise
Small appliances market declines slightly in 2020
Small appliances: Growth and per household consumption by category
Overview: Region size and growth by category in 2020
Overview: Category size and growth by region in 2020
E-commerce is becoming the default channel for small appliance sales
Examining five trends shaping small appliances

Q2 2021 Macroeconomic Update

Global baseline outlook: Faster recovery expected
Uncertainty continues to decline but remains significant
Real GDP annual growth forecasts and revisions from last quarter, AE

Q2 2021 macroeconomic Update

Real GDP annual growth forecasts and revisions from last quarter, EMDE
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