In 2022, Southeast Asia accounted for 19% of home care sales in Asia Pacific, second only to China. It is a dynamic region, which offers immense growth potential. Southeast Asia is home to high growth economies such as Indonesia, Philippines and Vietnam which, as per Euromonitor International’s data, are expected to grow faster than China over the forecast period.
IFA 2022 Berlin took place in a physical space for the first time after a three-year break. The conference featured the latest product innovations and industry hot topics, and also allowed experts to get back together. The 2022 IFA conference revolved around three themes, as expressed by IFA’s Senior Vice President David Ruetz in his opening speech – connectivity, smart home and sustainability.
Via, Euromonitor International’s e-commerce tracking tool for online prices, availability and ratings for stock keeping units (SKUs), can easily identify trends in the market and provide strategic and tactical recommendations. In this piece, we will take a granular look at how blenders have performed at the US’s largest electronics and appliance specialist retailer, Best Buy.
Appliance prices have been rising since Q2 2020. Although aluminium and copper are approaching pre-pandemic prices, and logistics costs are coming down, high energy prices and labour costs continue to drive inflation. The industry also faces a high interest rate environment with deteriorating housing markets. High prices and low demand could be a worst case scenario for the industry.
Only 55 companies have remained on the Fortune 500 list continuously since its inception in 1955. In that year, GM was the biggest company in the world. 70 or so years later, Wal-Mart, a discount store, is the biggest, while GM filed for bankruptcy in 2009. A generation ago, a “Kodak moment” referred to a picture-worthy moment. Today, it is widely used to describe companies that failed to adapt to market disruptions. Clearly, companies need to innovate their products and business models to survive.
For almost 18 months, consumers were focused on basic food preparation and cooking appliances. In 2021, the focus shifted to eating better, home health and hygiene, and personal feel-good products. These habit-forming trends are expected to endure as consumers focus on themselves.
Consumer appliances in Southeast Asia has tremendous growth potential. As Southeast Asia's economy grows rapidly, urbanisation and higher disposable incomes will help stimulate sales in appliances. With manufacturers actively driving initiatives while providing “affordable premium” products, the future is bright for the industry.
Consumers had an interesting two years to prioritise the appliances in their homes. People continue to cook more at home, with many exploring new recipes from their social media feed. Growth has shifted from major appliances to small appliances predominantly in the food preparation and hygiene areas. Longer term, we expect the focus to shift to sustainability, interoperability, collaboration, migration to electric stoves, and increased D2C sales.