Microwaves in South Africa

PROSPECTS

Convenience continues to drive microwave sales

Consumers continue to be attracted to the convenience that microwaves offer, which has led to steady growth in the current year. The desire for convenience is evident in the growing popularity of ready-made meals, which can simply be heated and eaten, without any extra preparation required.

Consumers browse channels for competitive deals

Microwaves are usually replaced by consumers out of necessity – either the appliance no longer works, or no longer functions as it should and needs to be replaced. In other words, innovation is less evident in this category and the replacement of microwaves is one of the main factors driving volume growth.

Freestanding microwaves continue to be the preferred choice for consumers

Freestanding microwaves remain the most popular format by far among consumers, given their versatility and relatively affordable price. Additionally, poor households and those living in small apartments prefer this format as their limited kitchen space leaves them with no choice but to buy cheaper, smaller microwaves that can be fitted into small spaces and easily moved around.

COMPETITIVE LANDSCAPE

Defy Appliances retains market leadership, while Russell Hobbs ranks second

Prominent home appliances manufacturer Defy Appliances (Pty) Ltd remains category leader in microwaves, as the company boasts a wide variety of appliances at different price points, thereby catering for consumers across the income spectrum. Given the brand’s lower average unit price, Defy is able to gain a large proportion of sales from the lower-end of the market, thereby accommodating consumers that desperately want a microwave but cannot afford other brands.

Private label gains market share

The review period has witnessed the emergence of private label microwaves as strong competitors in the microwave category. Large South Africans retailers including Pick n Pay and Checkers, with their respective ‘Ottimo’ and ‘AIM’ brands, have driven growth in the private label segment of the market.

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