Refrigeration Appliances in Portugal

PROSPECTS

Added value gains added influence

A buoyant economy and growth in new construction and home refurbishments continues to contribute to the positive performance of refrigeration appliances in 2019. Given average household income levels in Portugal, these products represent a high cost to families, and consumers’ readiness to invest in them by replacing old models requires access to credit and disposable income.

Capacity and convenience tops consumers’ cooling needs

As the economic mood becomes optimistic and forward-focused, consumers enjoy more freedom to prioritise concerns such as efficiency, convenience and aesthetics. More and more, the demand is for one solution to cater to a household’s freezing and refrigeration needs, reflected in the decline in sales of fridges, and the steady slowdown of freezers sales.

Premiumisation is prime mover

Major appliances, especially refrigeration appliances, require a constant supply of electricity, and this is a pertinent issue in Portugal where energy costs are among the highest in the EU. Efficiency is therefore essential, and certainly something that consumers consider to be a major consideration when purchasing large appliances.

COMPETITIVE LANDSCAPE

Whirlpool Portugal Lda holds on at the top despite growing competition

National company Whirlpool Portugal continues to lead refrigeration appliances in 2019, despite suffering a slight loss of share of volume shares. Increasing competition is becoming a real threat to those at the top, but Whirlpool Portugal’s strategy of positioning its products across three different price bands so far keeps it ahead.

Investment in brand image pays off for Candy

Renewed consumer confidence and the positive economic environment have been good news for well-known brands in 2019. Leading players continue to reinforce their positions with the proven strategy of competing in different price segments and thus appealing to all demographics.

New player Hisense makes its mark

Fagor ended its production in Portugal towards the end of the review period, making way for other brands to gain some foothold. Newcomer Hisense Electronic Iberia registered continuous retail growth over the review period and made a more prominent investment in the country with a physical presence in Portugal from 2018 – beforehand its Spanish office managed the Portuguese leg of the company’s operations.

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