Major Appliances in Middle East and Africa

Strategy Briefing

About This Report

Oct 2019

The region has recovered from economic uncertainties. Over the forecast period, improved stability is expected to continue driving consumer spending. Store-based retailing maintained dominance. Nonetheless, online retail has been gaining importance, contributing higher share in Israel and Saudi Arabia. Product wise, energy efficiency continued to gain awareness. Though most consumers stay price sensitive, brands that add value through warranty or service show promising performance.

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Major Appliances in Middle East and Africa

Key findings

A dynamic region with varying economic backgrounds

The Middle East and Africa comprises resource-rich nations as well as emerging economies. Over the review period, a few countries went through unexpected events, including recession in Nigeria, and high inflation in Egypt. These have brought instability in local consumptions. Nonetheless, all markets registered volume growth except Nigeria. The region achieved an average volume growth of 2.7% per year for major appliances.

Local partnership helps international brands secure market presence

It is quite common that international brands are managed by local companies. Haier and PZ Cussons in Nigeria, Toshiba and El Araby Group in Egypt, are some well-known examples. Local production helps to bring down cost. Brands also benefit from locally-established networks when it comes to distribution and sales support.

Potential for Chinese companies to expand regional reach

Chinese players including Haier, Hisense and Midea have constantly gained share within the region. Each has strong presence in one particular market, which is also the base of local production. Leveraging on a regional manufacturing centre, it is possible for these companies to expand their distribution and achieve greater regional success.

Internet sales started to show significance

Channel structure in the Middle East and Africa remains highly diversified, with store-based retailing dominating major appliance points of sale. Nonetheless, online retail has been gaining importance, contributing higher share in Israel and Saudi Arabia.

Introduction

Scope
Key findings

Regional Overview

Middle East and Africa: demand growth despite economy fluctuations
Urbanisation expected to boost consumer spending
Differing product priority observed within the region
Built-in segment grew from a small base
All markets except Nigeria see volume growth of total major appliances
Government policies may not work in favour of consumer appliances
Diversified channel structure, brick-and-mortar leads
Internet sales started to show significance

Leading Companies and Brands

Major appliances scene remains highly consolidated
Local production brings competitive edge
Potential for Chinese companies to expand geographical reach
Western companies facing challenge, and growth opportunity
Quality and services back LG and Toshiba performance

Forecast Projections

Morocco, Nigeria and South Africa projected to spur regional growth
Encouraging economic outlook expected to stimulate appliance demand

Country Snapshots

South Africa: market context
South Africa: competitive and retail landscape
Egypt : market context
Egypt : competitive and retail landscape
Nigeria : market context
Nigeria : competitive and retail landscape
Saudi Arabia : market context
Saudi Arabia: competitive and retail landscape
Morocco: market context
Morocco: competitive and retail landscape
Israel: market context
Israel: competitive and retail landscape
United Arab Emirates : market context
United Arab Emirates : competitive and retail landscape