Microwaves in South Korea

PROSPECTS

Volume growth is expected due to the heat and changing demographics

Microwaves is expected to post a positive retail volume CAGR over the forecast period. The increasing number of single-person households and dual-income households, the rising prices of agricultural products and warmer temperatures will accelerate the volume growth rate of microwaves.

Freestanding microwaves accounts for most sales

Freestanding microwaves is expected to continue to see a slightly higher retail volume CAGR than built-in microwaves over the forecast period. This is because the average unit price of freestanding microwaves is continuously decreasing due to offshoring, and such products provide multiple cooking functions.

The decline of electronics and appliance specialists and the growth of hypermarkets

Electronics and appliance specialist retailers was the dominant retail channel in microwaves in 2018, followed by hypermarkets. Nevertheless, the share of hypermarkets is rising, as retail brands such as E-mart now offer shop-in-shop areas for consumer appliances, where more competitive prices are offered than in other retail channels; these are proving popular with consumers.

COMPETITIVE LANDSCAPE

Samsung Electronics maintains its lead, followed by SK Magic and LG Electronics

Samsung Electronics remained the leader in microwaves in retail volume terms in 2018, followed by SK Magic and LG Electronics. The inside of their microwaves is made with ceramic, which is hard-wearing and easy to clean.

Domestic companies lead

Domestic companies leave little chance for international companies to capture volume share; therefore, domestic companies continued to dominate microwaves in 2018. They have strong distribution, provide warranties of up to 10 years and have developed their technology to fit with Korean food and lifestyles.

Retail players enter microwaves

E-mart, which is a major player in hypermarkets in South Korea, offered its No Brand line of microwaves from 2016, and saw strong volume growth. It offers only basic functions, but its price is relatively cheaper than products from major appliances companies.

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