Home Laundry Appliances in Turkey

PROSPECTS

Urbanisation and increasing need for larger capacity automatic washing machines to drive volume growth

Overall sales of major appliances, including home laundry appliances, registered a sharp double-digit growth by the end of 2017, due to the fiscal stimulus policy of the government, which brought about a number of tax exemptions for durable goods and real estate. However, as economic unease became significant, many Turkish consumers who aimed to buy a new home laundry appliance later in the future, preferred to purchase it in 2017 rather than 2018, to take the advantage of the price discounts stemming from tax exemptions.

Automatic dryers to make significant contribution to overall volume growth

While home laundry appliances demonstrated very dynamic volume growth in Turkey when the entire review period is taken into consideration, automatic dryers made the most significant contribution to the growth largely owing to the rapid increase in the need for convenience due to urbanisation. In 2018, automatic dryers stood out among the rest of home laundry appliances as being the least affected in terms of declining retail volume sales.

Connected home laundry appliances not expected to become mainstream

The average unit price of home laundry appliances recorded drastic current value growth at the end of the review period, mainly due to the termination of tax exemption and the sharp depreciation of local currency against the US dollar, rather than increasing sales of premium products. Although connected home laundry appliances gained volume share within the category in 2018, its overall sales are still far from making a notable impact on the value sales of home laundry appliances.

COMPETITIVE LANDSCAPE

Arçelik AS maintains leadership of home laundry appliances

Arçelik AS, as the one of the first movers of major appliances in Turkey, maintained its leadership of home laundry appliances in 2018, due to its exceptionally wide distribution and dealership networks across the country and high recognition level of its brands. In addition, its wide product portfolio that appeals to all socioeconomic groups under Arçelik, Beko and its economy brand Altus also gave the company a significant competitive advantage over the course of the review period.

LG and Samsung expected to become important brands over forecast period

Although they held low retail volume share within home laundry appliances, LG and Samsung continued to record strong volume growth as they have been present in Turkey less than a decade. Their performances are largely due to reaping the fruits of being credible brands in the eyes of Turkish consumers, considered to offer highly available consumer electronics of good quality.

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