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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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.
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.
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.
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.