The consumer appliances distribution landscape is witnessing dynamic shifts as consumers modify their shopping habits and preferences. As is the case with all other consumer goods, the appliances industry is significantly impacted by the rise of internet retailing, even as store-based shopping remains predominant. This briefing discusses key distribution trends and retailer strategies relevant to consumer appliances.
The overall consumer appliances industry posted healthy 4% volume growth in 2017, buoyed by macroeconomic recovery in Eastern Europe and Latin America, and steady volume demand from Asia Pacific.
In volume terms, electronics and appliance specialist retailers remained the largest distribution channel for consumer appliances in 2017, leading overall store-based channels and outselling non-store and non-retail channels.
Led by consumer appliances internet retailing, non-store channels registered the most dynamic volume growth over 2012-2017 as consumers gravitated to online platforms for competitive prices and added convenience.
Despite holding a modest volume share of overall distribution of consumer appliances in 2017, non-retail channels (construction and builders merchants) remained important avenues for sales of built-in major appliances and air conditioners across both developed and emerging markets.
Private label brands held an almost equal share of volume sales of small and major appliances in 2017. However, private label major appliances saw absolute volume declines over 2012-2017, while sales of private label small appliances continued to surpass major appliances and register steady volume growth.
Over 2017-2022, the consumer appliances industry is set to grow by a forecast volume CAGR of 3%. Asia Pacific and Middle East and Africa are expected to lead volume growth thanks to increasing incomes, low overall product adoption, and rising urbanisation in these regions.
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