Refrigeration Appliances in Hong Kong, China

PROSPECTS

Developers boost the share of built-in fridge-freezers

Refrigeration appliances maintained slow retail volume growth in 2019, mainly driven by replacement sales. Although freestanding products dominate, because they are more affordable and easier to replace than built-in models, built-in fridge-freezers saw the strongest performance.

Sales of single-purpose appliances such as fridges and freezers fall strongly

Consumers do not see the need to purchase two separate appliances, a fridge and a freezer, when they can purchase one appliance which combines both functions. Multipurpose products take up significantly less space in small apartments.

Increasing commoditisation in refrigeration appliances

Due to the high level of maturity and high penetration rate, demand for refrigeration appliances in Hong Kong mainly comes from replacement sales. However, despite the continued launch of premium products, increasing commoditisation is being seen, with many consumers being price-sensitive and just wanting a product which works, especially in fridge-freezers.

COMPETITIVE LANDSCAPE

Hitachi maintains its lead in a category dominated by international brands

Hitachi remained the leading brand in refrigeration appliances in retail volume terms in 2019, and continued to see growth in its share. Other prominent brands in the category included Whirlpool, Samsung and Mitsubishi Electric, all of which also saw share increases due to their strong brand names and long-standing presence in the country.

Fisher & Paykel concentrates on profit margins, at the cost of volume sales

Despite the commoditisation of refrigeration appliances, players repositioned their ranges or launched new premium products to try and attract consumers. For instance, Fisher & Paykel tried to differentiate by pricing its products in the premium segment.

Property developers favour Siemens, fuelling sales of its built-in fridge-freezers

In addition to offering freestanding products at the retail level, Siemens built-in fridge-freezers are widely adopted by property developers when they are furnishing newly-built apartments, boosting sales via the construction channel. Siemens is a brand which is well-known for its durability and quality.

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