Refrigeration Appliances in Saudi Arabia

PROSPECTS

Stable demand for large capacity freestanding fridge freezers, best suited to Saudi lifestyles

Refrigeration appliances in Saudi Arabia recorded stable demand in 2019, driven by sales of the most popular category of freestanding fridge freezers. Double door (top freezer) fridge freezers remained the most popular format, offering versatility and convenience for most households.

Single expatriates and extended families form basis for rising demand for freestanding fridges

The smaller category of freestanding fridges recorded the strongest performance in retail volume terms in 2019, driven by demand from single expatriate males working in the country. These appliances tend to serve as personal “bedroom fridges”, where consumers either reside in shared accommodation with other men in a bid to share rental costs or are downsizing their existing refrigeration appliances after their families have left the country.

Focus on greater energy efficiency in light of rising prices and electricity costs

Several factors are influencing local consumers when deciding which refrigeration appliance to purchase. With average unit prices continuing to increase following the introduction of a new 5% VAT rate in 2018, Saudis are focusing on finding appliances that offer the greatest value for money.

COMPETITIVE LANDSCAPE

Al Jabr Trading Co strengthens leadership due to competitively-priced Haier

Al Jabr Trading Co strengthened its overall leadership of refrigeration appliances in 2019, due to the strong performance by its competitively-priced brand Haier. The brand gained retail volume share in a number of categories including the increasingly popular freestanding fridges in addition to freestanding freezers, both of which it leads, offering an extensive variety of single door options for fridge freezers.

LG leads freestanding fridge freezers, supported by innovation and product development

LG Electronics Saudi Arabia Ltd strengthened its lead of the most popular category of freestanding fridge freezers in 2019, gaining further retail volume share from smaller players despite strong competition from the likes of United Matbouli Group and Al Jabr Trading Co. LG Electronics continues to improve and upgrade its various models to provide greater differentiation in terms of performance, higher energy efficiency and convenient functions to meet consumers’ varying needs.

Recovering sales for Samsung, focusing on premium segment

Samsung, nationally represented by United Matbouli Group in Saudi Arabia, experienced a recovery in 2019 in freestanding fridge freezers, ranking second after losing ground to competitively-priced brands such as Haier and smaller players the previous year. Samsung is keen to maintain consumer trust by focusing on a premium range of refrigeration appliances for more affluent consumers.

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