Major Appliances in Latin America

The challenging economic situation affects major appliances

The economic recession in Brazil and persistently high inflation in Venezuela led to a sharp drop in demand for major appliances in Latin America. The macroeconomic situation in Argentina and Colombia continued to be sluggish, having the most impact on low-and middle-income consumers. Mexico and Chile, by comparison, are relatively well-placed and expected to drive the growth of major appliances, aided by suitable credit facilities and discounted shopping occasions, such as Black Friday.

Energy-efficiency and smart, connected appliances are two key themes for innovation

Consumers with higher disposable incomes, who are less affected by challenging economic times, seek to upgrade their homes with value-added major appliances. Refrigeration appliances in particular have witnessed smart innovation in the form of touch-screen controls and different cooling system technologies offered by multinational brands such as Samsung. Price-sensitive consumers, on the other hand, seek out energy-efficient major appliances to reduce their energy costs.

Multinationals have a dominant presence in major appliances

Whirlpool and Electrolux have the most significant presence in major appliances across Latin American markets. Electrolux maintains a complete product portfolio at attractive prices, whereas Whirlpool attempts to roll-out more value-added products, especially within home laundry and refrigeration appliances. Some domestic companies with a good understanding of the local market, such as Jose M Alladio E Hijos in Argentina, have also shown good performances.

Increasing internet penetration is shaping the retail landscape

Electronics and appliance specialist retailers has been the most relevant channel for the distribution of major appliances across Colombia, Argentina, Venezuela and Brazil. However, a gradual shift in consumers’ shopping habits has led to internet retailing emerging as a key growth channel. Multichannel approaches are also becoming more common, especially among millennial consumers, who are keen to research and compare product features and prices before purchasing appliances.