Although both dishwashers and automatic dishwashing remain very limited to the most developed markets of North America and Western Europe, there is evidence that these categories are showing some signs of spreading their wings and moving into new territories – namely developing markets. While the Turkish market suggests ADW can flourish even in developing markets the future success of the category perhaps rests on the ability of appliance and detergent manufacturers to act in unison rather than
Though still perceived as a luxury item in many countries, built-in dishwashers are more popular as they provide the fitted kitchen with a premium image. In addition, as kitchen size is often limited, consumers prefer dishwashers to be integrated, rather than a freestanding appliance.
With low penetration rates and rising disposable incomes, the BRICs are forecast double digit CAGRs over 2013-2018. Fast paced lifestyles will heighten demand growth, along with active marketing pushes on the part of manufacturers.
Whirlpool, Bosch, and Electrolux have dominated the global dishwashers market for a long time. However, competition is heating up with Arçelik, LG and Haier entering with affordable prices, product localisation and technological developments. Oligopoly is changing.
While the rest of home care is booming on the back of rapid progress in developing markets, automatic dishwashing (ADW) products have not, similarly to air care, which is another category which has failed to demonstrate its applicability to consumers on restricted budgets.
ADW sales have remained restricted to Western Europe and North America, which is a mixed blessing. Manufacturers have been starved of the low hanging fruit offered by fast developing emerging markets. That said with per machine expenditure low in North America there could be an opportunity to make more of markets which are already familiar with machine dishwashing.
With penetration in developing markets making very slow progress, Turkey, with its relatively high possession rate and modern ADW detergent category, is a shining example of what developing markets could offer to ADW, but the question remains how to replicate these conditions in other markets.
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