Microwaves in Canada

PROSPECTS

Canadians tire of microwaves

As Canadians tire microwaves, retail volume sales have suffered. Over many years, microwaves have been purchased by millions of consumers in Canada, resulting in high household penetration.

Frozen processed food affects use of and demand for microwaves

The consumption of frozen processed food has slowed down in Canada, as consumers become increasingly concerned about the potential health effects associated with these food products. In addition to the healthier eating trend, higher consumer disposable incomes diverted demand away from frozen processed food to the detriment of microwaves.

Aesthetics favour built-in microwaves

A recent study by CIBC (Canadian Imperial Bank of Commerce) shows that 48% of surveyed customers planned to renovate their home, with more millennials than baby boomers intending to do so. As part of their home renovation plans, consumers are expected to show a preference for built-in microwaves, which are perceived to provide an aesthetic approach to the kitchen area and extra counter space.

COMPETITIVE LANDSCAPE

Competition intensifies as Sears withdraws

The acquisition of GE (Mabe Canada) by Haier Group, the new GBO, has strongly improved the brand’s retail volume share performance. As a result, GE jumped from sixth in 2015 to first in 2016, and it remained the leading brand up to the end of the review period.

GE plays a strategic role in Haier’s expansion plans

The acquisition of GE (NBO: Mabe Canada) from General Electric Co is part of Haier Group’s strategy to strengthen its capability and position in Canada and North America. Haier is looking for an advertising agency to design and support creative services for its portfolio of brands, in order to reposition the manufacturer and extend its reach in the region.

Players bet on smart microwaves

Sales of smart microwaves market are predicted to grow steadily in the forecast period due to higher consumer living standards and an increased interest in connected smart appliances among millennials. High smartphone penetration and usage also favours the adoption of smart microwaves, as microwaves can be connected and monitored remotely by these devices.

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