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. Demand in 2021 is expected to remain robust, boosted by continued government stimulus. However, looming supply chain challenges could curtail growth. The semiconductor shortage is especially serious with no solutions in the near term.
This report comes in PPT.
While sales were impacted in H1 2020 due to the various lockdowns, most of consumer appliance sales occurred in H2 2020, with stimulus cheques, home sales and upgrading driving the market.
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.
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 running 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.
The EU’s latest regulations impacting appliances include stipulations for repairability and recyclability intended to improve the life span, maintenance, reuse, upgrade, recyclability and waste handling of appliances.
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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