Refrigeration Appliances in Brazil

PROSPECTS

Due to the economic environment, a good performance is expected

Following the good performance seen in 2017, refrigeration appliances continued its recovery in 2018. Consumers, now facing a reality of low inflation, and consequently lower credit interest rates – which are expected to remain until 2019 – were finally able to breathe and purchase more freely.

Products are more expensive due to commodity price rises

The rise in volume sales in 2018 was despite an increase in the average unit price, due to rising commodity prices. Companies were wary of passing on these rises to consumers, as Brazilians are still very price-sensitive, with many avoiding buying high-value products, uncertain of the economy and their employability – even though the projections are positive.

While still a niche, electric wine coolers/chillers is expected to see growth

Brazil is not a major consumer of wine and champagne when compared with other countries with the same economic size, or even compared with neighbours such as Chile and Argentina. In addition, wine has a negative forecast, with overall consumption of wine falling due to weak sales of national wines.

COMPETITIVE LANDSCAPE

International players dominate

Whirlpool with its Consul and Brastemp brands and Electrolux do Brasil with its Electrolux brand together accounted for three quarters of volume sales in refrigeration appliances in 2018. Both companies, although especially Whirlpool with Consul, have positioned their products with prices which are attractive to low- and middle-income consumers, holding a strong presence and fielding-off competitors.

Other players fight for share, but with little success

Panasonic do Brasil followed Whirlpool and Electrolux in refrigeration appliances in volume terms in 2018, although at a long distance. Other players, both local and international, also fight for a slice of the pie with the release of new products in Brazil, but their shares remain insignificant when compared with Whirlpool and Electrolux.

LG innovates with its new double-door fridge-freezer

The new LG Monarch 4 fridge-freezer is attracting attention with new technology called InstaView. The new function allows users to see within the fridge without having to open the door.

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