Where Consumers Shop for Consumer Appliances

July 2022

The shift to e-commerce continues in consumer appliances. E-commerce platforms see appliances as a growth opportunity, while consumers like the convenience. However, physical retailers are fighting back by providing on-the-spot services and a frictionless experience. Moving forward, high inflation is expected to favour those e-commerce platforms which can offer higher discounts and greater convenience.

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This report comes in PPT.

Key Findings

E-commerce dominance is bringing an inevitable shift

The pandemic has accelerated the channel shift from physical to online retail. With consumers valuing access to a wider product assortment and price comparison, competition is becoming fiercer. For consumer appliances, the e-commerce channel could soon be dominant in developed economies.

Physical retail betting on services

To resist the shift to e-commerce, physical stores are innovating. They have implemented innovative in-store services strategies, such as extended warranty options, store payment plans, an interactive experience and professional consultation from staff. Easy-access pick-up locations are also available to drive online traffic back to physical stores.

Retailers focusing on appliances

Capitalising on consumers’ interest in making their homes more comfortable, major retailers are actively promoting appliances. Ikea launched a smart air purifier and the Matter ready smart speaker in its push towards appliances. E-commerce giants from China are increasing their partnerships with appliance brands to make the online purchase of major appliances frictionless through free shipping and free returns.

Strong inflationary impact on the supply chain

Historic analysis has shown that high inflationary environments have a long-term impact on the appliances industry. High commodity prices and materials shortages will push up appliance prices. Retailers will be forced to change their inventory strategies to prepare for unpredictable consumer demand.

Introduction

Scope
Key findings

Industry snapshot

Consumer appliances sales growth recovered to pre-pandemic levels in 2021
Delayed consumer demand helping major appliances to recover
Positive historic trajectory but with some localised declines

Channel shifts

Non-store retailing continues on the path towards domination
Non-store retailing sees rapid growth across all regions
Pandemic speeds up the shift to online

Store-based channels

Specialists retailers continue to dominate within store-based retailing
Variety stores in Latin America see the fastest recovery in 2021
Pandemic accelerates the shift from physical to online retail
Top five companies remain fairly stable, while others launch pandemic-inspired initiatives
Home and garden specialist retailers recover unevenly across different regions
Leading players stay dynamic with innovations to maintain consumers’ interest
Private label expanding its product assortment as leading brands feel pressure
Economising consumers find appeal in private label appliances

Non-store channels

Chinese e-commerce platforms focusing on consumer appliances
E-commerce sales continue to see strong growth
Exceptionally strong growth for e-commerce across regions in 2020
Potential of e-commerce in small appliances remains significant
Amazon regains its leading position in 2020

Non-retail channels

Construction channel showing resilience following 2020 lockdowns

Future developments

Consumer appliances predicted to see moderate growth over the forecast period
Inflation to heavily impact path to consumer
Key takeaways

Consumer Appliances

Consumer Appliances is the aggregation of major appliances and small appliances. Major appliances are an aggregate of the following categories: refrigeration appliances, home laundry appliances, dishwashers, large cooking appliances and microwaves. Small appliances are an aggregation of the following categories: food preparation appliances, small cooking appliances, vacuum cleaners, irons, personal care appliances, heating appliances and air treatment appliances.

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