Refrigeration Appliances in Colombia

PROSPECTS

Refrigeration appliances set to see moderate growth over the forecast period

In 2017, refrigeration appliances suffered a moderate decline resulting from Colombia’s economic slowdown, political turmoil due to the presidential campaign and a rise in VAT all of which weakened consumer confidence. However, in 2018, there has been a return to growth with a slight recovery in the Colombian economy due to more stable inflation and interest rates, as well as the culmination of presidential election.

Companies focus on energy efficiency

Demand for energy-efficient appliances continues to grow, with the majority carrying A, B and C classification. The consumer desire to improve and conserve energy usage is based on the environmental impact but also on saving money on utility bills.

Connectivity is an ongoing concept

Premium refrigeration appliances is seeing growth driven by high levels of customisation which provides consumers with flexibility when it comes to arranging and sorting food and beverages, with touch-screen controls, noise reduction and different cooling settings. New product launches such as Samsung’s French Door Family Hub Fridge and LG InstaView Door-in-Door have introduced in simple and elegant designs appliances with which consumers can quickly identify what they want without opening the door.

COMPETITIVE LANDSCAPE

Main brands concentrate on innovation

Samsung’s slogan “Innovation without limit” and LG’s “Better performance for energy saving” points toward their core business: Technological innovation to target high-income consumers. Connected fridge freezers saw strong growth over the review period with sales of these products accounting for a significant portion of high-priced refrigeration appliances.

Consumer demand for well-known brands restricts entry of new players

Private label products do not have a significant presence in refrigeration appliances. Even though retailers and hypermarkets have launched private label products to attract consumers with cheaper prices and basic functionalities, consumers rely a lot on experience and brand name for this category, as they trust these brands to provide high-quality functional offerings and valuable after sale services.

In-store assessment has become a must for refrigeration appliances

Hypermarkets and electronics and appliance specialist together account for over half of all distribution in volume terms thanks to constant price promotions and a range of payment methods including deferred payments and the use of their store credit cards. Store-based retailers remain important as consumers like to physically compare brands and a product’s design and features.

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