Refrigeration Appliances in Egypt

2020 IMPACT

Pandemic led to slowdown in housing turnover and a decline in consumer confidence, weakening demand for big-ticket items like refrigeration appliances

COVID-19 had a significant negative effect on retail volume sales of refrigeration appliances during 2020. A significant number of consumers purchase new refrigeration appliances when they move home, but the pandemic led many to stay put during the year.

Samsung launches modular and bespoke refrigerators

During 2020, Samsung Corp launched a bespoke refrigerator that allows consumers to choose the materials and colours, enabling them to put a personal mark on their kitchen. This refrigerator also contains Flex Zone – a compartment that can be used as either a fridge or a freezer.

Local manufacturing facilities and strong brands key to El Araby Group’s leadership position

El Araby Group maintained its strong leadership position in refrigeration appliances during 2020. It distributes the Toshiba and Sharp brands of refrigeration appliances locally, with the former accounting for the bulk of its volume sales.

RECOVERY AND OPPORTUNITIES

With local consumers likely to remain cautious well into the forecast period, recovery in demand will be sluggish

Retail volume sales of refrigeration appliances will continue to decline during 2021, albeit at a much more modest rate than in 2020, due to the lingering economic impact of COVID-19. While retail volume sales are set to rebound strongly during the latter part of the forecast part, they will remain below their 2019 peak.

Pandemic will lead manufacturers to launch refrigeration appliances will more sophisticated cleaning features

With local consumers increasingly interested in hygiene as a result of the pandemic, manufacturers are likely to launch refrigeration appliances with deep sanitation, auto or easy clean features. Energy efficiency is also likely to become more of a priority for many, as the government continues to raise the price of electricity.

COVID-19 will accelerate e-commerce adoption

The retail volume share of refrigeration appliances accounted for by e-commerce increased once again in 2020, albeit from a fairly low base, as retailers and manufacturers scrambled to adapt to lockdown conditioners by increasing their focus on this channel. With internet access broadening and local consumers gradually becoming more comfortable shopping online, the retail volume share of e-commerce is likely to continue to expand over the course of the forecast period.