Global Key Insights Into Built-in Appliances and Channels: Part I - Driven Factors and Challenges

Leverage growth of wealthy households in Asia Pacific and Middle East and Africa

• North America and Western Europe have the largest populations of middle- to high-income households, supporting their purchasing power for built-in appliances
• The faster growth of such households in Asia Pacific and the Middle East and Africa should be exploited, since integrated kitchen design is gaining momentum in those regions

Introduce more compact and multifunctional built-in appliance designs

• Increasing housing prices has caused a reduction in housing space especially kitchen size
• Single households and households without children, who find full size appliances exceed their needs, are growing at a faster rate than larger-sized households

Service is critical for differentiation among intensifying competition

• Asian rivals have been on a spending spree acquiring leading Western brands strong in built-in appliances, intensifying the premiumisation war and improving product quality
• Service will be the main battleground for differentiation since installation and repair is more difficult for built-in appliances

Deeper understanding of needs of Generation Z and Later Lifers (60+)

• Built-in appliance sales currently mainly target Generations X and Y, but the Generation Z era is coming and the global population of Late Lifers is also growing
• Their unique lifestyles and preferences have an impact on their choices of built-in appliances including brands, aesthetic designs and features