Large Cooking Appliances in Saudi Arabia

PROSPECTS

Ongoing stable demand for large cooking appliances, dominated by cookers

Large cooking appliances continued to record strong demand in 2019, driven by the dominance of cookers, which remains the primary cooking appliance in most family residential households, and caters to mass cooking, particularly for extended families. Sales of cookers were supported by ongoing promotional campaigns by major brands leading to a decline in the average unit price.

Freestanding large cooking appliances will retain greater popularity supported by trend for modern open kitchen spaces

The high urbanisation rate in Saudi Arabia and the strong Western influence, particularly amongst the younger population, will boost the predicted stronger demand for freestanding cooker hoods over the forecast period. This demographic is more accepting of modern open kitchen spaces, with sleek designs appreciated more as kitchens rapidly become an extension of the living area.

Positive factors supporting increasing marriage rates and home ownership will help drive further category sales over forecast period

Steady demand for large cooking appliances in Saudi Arabia over the forecast period will be driven by increasing disposable incomes as the government’s attempts to promote Saudization will result in better work opportunities for residents, including women, leading to higher incomes per household. This will support the renovation of old kitchen spaces, in addition to a rise in the number of new homeowners as the marriage rate increases.

COMPETITIVE LANDSCAPE

Ibrahim Shaker experiences increasing competitive pressure

Ibrahim Shaker Co Ltd retained its leadership of large cooking appliances in 2019 due to a long-standing presence in the country, offering well-known brands such as Hotpoint-Ariston, Maytag and Indesit. However, the player lost retail volume share in 2019 due to increasing pressure from second-ranked Zagzoog Home Appliance, which offers the leading brand in cookers, Glemgas, while Ibrahim Shaker’s Midea experienced strong decline in the same category.

Electronics and appliance specialist retailers strengthens position as leading distribution channel

Electronics and appliance specialist retailers strengthened its position as the leading distribution channel of large cooking appliances in Saudi Arabia in 2019 due to strong consumer trust in these outlets and the diverse offer of brands and models. The presence of experienced salespersons that offer consumers guidance on the latest launches of appliances also help to support sales through this channel.

Global brands of large cooking appliances enjoy strong consumer trust

Large cooking appliances continued to be dominated by international brands, particularly of Italian origin such as Glemgas, La Germania and Smeg, distributed by local companies in Saudi Arabia as there were no local manufacturers of these products in the country at the end of the review period. Innovation within large cooking appliances remains limited in Saudi Arabia, although to maintain brand positioning, players are predicted to launch innovative smart cooking appliances over the forecast period to address consumers’ evolving needs and lifestyles.

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