Microwaves in the Philippines

PROSPECTS

Rising demand for convenience fuelling interest in microwaves

A consumer spending boom in the Philippines fuelled by cash remittances from overseas workers and the outsourcing industry, as well as busier lifestyles, have combined to impact the dining habits of Filipinos. Along with overall population growth and the housing boom, this is helping to fuel demand for major appliances such as microwaves.

Versatility and small size of microwaves in line with modern housing trends

Microwaves are perceived as being suitable for small-apartment living as they take up less space than large cooking appliances. Over the coming years, microwaves is thus projected to record healthy growth as young professionals with no children are most likely to purchase such appliances instead of large cooking appliances, in line with rising demand for convenience.

Focus on increased versatility to attract price and space conscious consumers

The penetration of microwaves remains limited in the Philippines and is unlikely to increase significantly over the forecast period. While urban mid-high income consumers will remain the core audience for microwaves, the rising cost of living, inflation and substantial population of consumers living in rural areas will continue to hinder growth potential.

COMPETITIVE LANDSCAPE

Reputation for quality and affordability key to success in fragmented category

There is currently no dominant brand within microwaves in the Philippines. As microwaves are typically used to heat up food, consumers tend to look for basic functions and a trusted brand name, with GE and Electrolux leading sales thanks to strong awareness among consumers.

Strong brand awareness and quality ensures global brands remain in pole position

Players such as Electrolux and Whirlpool continue to lead sales within microwaves due to strong consumer awareness of their brands and offering of high quality. However, as consumers are highly price-conscious, these brands are unlikely to see a significant rise in sales share unless they release more models with affordable price points.

Focus on expanded distribution and credit offers to attract consumers

Distribution also plays an important role with regard to leading players maintaining and growing their sales shares. Both bricks and mortar and online retailers are intensifying their efforts to reach more consumers by widening their product lines, as well as offering promotions and interest-free installation payments.

Files are delivered directly into your account within a few minutes of purchase.