Microwaves in the Philippines

PROSPECTS

Growth of microwaves is boosted by the lifestyle and eating habits of Filipinos

A consumer spending boom in the Philippines that is being fuelled by cash remittances from overseas Filipino workers and the outsourcing industry as well as busier lifestyles, have resulted in multiple trickle-down effects, including the dining habits of Filipinos. Busier lifestyles especially in urban areas have left consumers with less time to cook their own meals.

Microwaves suit small-apartment living

Microwaves are also suitable for small-apartment living because they take up less space than large cooking appliances. In the coming years, microwaves is projected to record healthy growth as young professionals with no children are most likely to purchase microwaves instead of large cooking appliances as this suits their desire for convenience.

Despite rising popularity ongoing low household penetration likely

Microwaves still accounts for a low household penetration rate and is unlikely to see much increase over the forecast period. Whilst urban mid- to high-income demographics will continue to be the core audience for microwaves, the rising cost of living, inflation rates and substantial population of consumers living in rural areas will continue to hinder the growth potential of microwaves over the forecast period.

COMPETITIVE LANDSCAPE

Fragmented category led by CYA Industries

The leading player in microwaves in 2018 was GE which only managed to scrape a double-digit volume share and was followed by a number of international companies such as Sharp and Whirlpool, as well as local players such as Imarflex. “Others” accounted for a substantial share, which is indicative of consumer purchasing patterns in microwaves, where they prefer to purchase affordable entry-level models from brands such as Hanabishi, where the economical price point is more important than the specific features of the model.

International players retain the strongest positions

Players such as Electrolux and Whirlpool continue to be prominent in microwaves due to consumer awareness of their brands and the quality of their microwaves. However, as consumers are highly price-conscious, it is unlikely that their brands will play a huge role in expanding their category shares unless they release more models with affordable price points.

Distribution important, especially for international players

Distribution also plays an important role in maintaining and growing the category shares of the leading players. 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.

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