Microwaves in Morocco

2020 IMPACT

Disruption to logistics chains impacts sales volumes

The onset of the COVID-19 pandemic during the middle months of 2020, and the measures put in place by the Moroccan authorities to limit its spread, caused serious problems in distribution channels for microwaves. Deliveries of microwaves between cities was not possible for several weeks.

Microwave purchases further harmed by widespread store closures

The strict lockdown that was introduced at the start of the COVID-19 pandemic forced all retail stores to close for several months. This meant that consumers could not purchase consumer appliances, including microwaves, for a large portion of the year.

Leading brands maintain volumes with discounts and special offers

In response to the much lower levels of disposable income among Moroccan consumers in 2020, companies introduced aggressive discounts in order to prevent sales volumes from dropping further. Discounts of up to 30% became increasingly widespread.

RECOVERY AND OPPORTUNITIES

Consumer demand to increase with arrival of new products

The ongoing uncertainty and instability in the retail environment is affecting the strategies of microwave manufacturers. Due to the COVID-19 pandemic, most brands are delaying the launch of new products.

Longer replacement cycles to slow rate of recovery

Moroccan consumers traditionally do not often replace their microwaves, due to their purchasing power generally being quite low. They are expected to buy new microwaves even less frequently throughout the forecast period, leading to sluggish retail volumes, as levels of disposable income are likely to recover only slowly.

Discounts and combo deals to become more widespread

For the duration of the forecast period, microwave manufacturers are expected to focus on increasing their volume sales rather than strive to increase current value. They are likely to continue to offer large discounts, as was seen from several leading brands in 2020.