World Household Appliances Market Brief

World Household Appliances Market Brief

The global outlook series on Household Appliances provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a bird’s eye view of the structure of the global household appliances industry, providing an easy guide to What, Why, When, How, Where, and Who of an industry. The report also provides a rudimentary insight into major product markets, definitions, and classification, in addition to fast facts about the ongoing consolidation among retailers, the intensifying competition brought about by the ingress of new entrants, new opportunities in Asia, the impact of technology, changing consumer preferences and other noteworthy trends/issues. Also included is a compilation of all recent mergers, acquisitions, and strategic corporate developments. In addition to the global market scenario, a regional level of discussion designed to provide a prelude to prevalent market scenarios in major countries, culminate in building a macro-level perception of the industry in its totality. Regional markets briefly abstracted include the US, Mexico, Japan, Europe, Germany, Italy, UK, Asia, China, India, Indonesia, South Korea, Taiwan, Thailand, Argentina, Brazil, Chile, and Dominican Republic. The report also includes an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of 911 companies worldwide.

HOUSEHOLD APPLIANCES GOS-087
A GLOBAL OUTLOOK, SEPTEMBER 2008


CONTENTS


1. Overview 1
Table 1: Global Market for Major Electric Household Appliances
by Geographic Region - USA, Canada, Japan, Europe, Asia-
Pacific, Middle East, and Latin American Markets Independently
Analyzed with Annual Sales Figures in ‘000 Units for Years
2003 through 2008 1

Table 2: Global Major Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Region -
USA, Canada, Japan, Europe, Asia-Pacific, Middle East, and
Latin America 2

Table 3: Global Market for Major Electric Household Appliances
by Product Segment - Compactors, Dishwashers, Disposers,
Dryers, Freezers, Microwave Ovens, Range Hoods, Electric
Ranges, Refrigerators, Vacuum Cleaners, Washing Machines,
Water Heaters (Electric), Room ACs, and Other Major Electric
Household Appliances Independently Analyzed with Annual Sales
Figures in ‘000 Units for Years 2003 through 2008 2

Table 4: Global Major Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Product
Segment - Compactors, Dishwashers, Disposers, Dryers,
Freezers, Microwave Ovens, Range Hoods, Electric Ranges,
Refrigerators, Vacuum Cleaners, Washing Machines, Water
Heaters (Electric), Room ACs, and Other Major Electric
Household Appliances 3

Table 5: Global Market for Small Electric Household Appliances
by Geographic Region - USA, Canada, Japan, Europe, Asia-
Pacific, Middle East, and Latin American Markets
Independently Analyzed with Annual Sales Figures in ‘000
Units for Years 2003 through 2008 4

Table 6: Global Small Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Region -
USA, Canada, Japan, Europe, Asia-Pacific, Middle East, and
Latin America 4

Table 7: Global Market for Small Electric Household Appliances
by Product Segment - Blenders, Bread Makers, Broilers, Can
Openers (Electric), Coffee Makers, Electric Knives, Food
Choppers, Food Processors, Irons, Mixers, Toaster Ovens,
Toasters, Waffle Irons, and Miscellaneous Small Electric
Household Appliances Independently Analyzed with Annual Sales
Figures in ‘000 Units for Years 2003 through 2008 5

Table 8: Global Small Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Product
Segment - Blenders, Bread Makers, Broilers, Can Openers
(Electric), Coffee Makers, Electric Knives, Food Choppers, Food
Processors, Irons, Mixers, Toaster Ovens, Toasters, Waffle
Irons, and Miscellaneous Small Electric Household Appliances 6
Product Classification 6
Current Situation 6
Outlook 7
Production Statistics 7
Vacuum Cleaners Lead Appliance Production 7
Europe, USA and Asia-Pacific Dominate Production Levels 7
Demand Variables 7
Consolidation Among Major Retailers 8
Positive and Negative Factors 8
New Entrants Intensify Competition in the Global Market 8
US and European Markets Flourish by Replacement Demands 8
US and European Appliance Markets: A Comparison 9
Eastern Europe and Russia Witness Mixed Growth 9
Asian Players Pose Threat to Western Majors 9
Asia - The Region of Dynamic Local Markets 9
Factors Triggering Growth 10
Replacement Sales 10
Housing Starts 10
Saturation Levels 10
State of Economy 10
Specific Product Demand 10
Impact of Technology on Home Appliances 10
Major Trends 10
Trade Policies Affect Household Appliances Export Market 10
Designer Appliances on Demand 11
Consumption Boosts Demand 11
Changing Definition of a Home 11
A Shift Towards Easy-Operable Appliances 11
Ergonomical Yet Trendy 11
Innovation - Name of the Game 11
Appliance Manufacturers - Spreading Wings Globally 11
Manufacturers’ Changing Priorities: The Inevitable Factor 12
Consumer Preferences Rule the Industry 12
Preference for Premium-Priced Products 12
Usage Habits 12
Demand for Larger Capacity Water Heaters 12
Safety: Top Priority 12
Consumers Prefer Colorful Appliances 12
Light Weight and Practical Cleaners - The Growth Components 12
Trendy Appliances in Vogue 13
Minimal Effort Combined with Improved Performance 13
Houseware Market - Plagued by Problems 13
Plastics Replace Metals in Appliances 13
Quest for Silence 13
Manufacturers Strive to Minimize Energy Consumption 13

2. Product Overview 14
Product Definition 14
Product Classification 14
Dishwashers 14
Built-in Dishwashers 14
Booster Heater 14
Wash Cycles 14
Filtering System 14
Internal Food Disposer 14
Rinse Aid Dispenser 14
Sound Dampening 14
Food Waste Disposers 14
Microwave Ovens 15
Microwaving: Prevents Leaching of Vitamins 15
Microwaving: Does Not Pose Risk of Radiation 15
Uneven Heating Leads to Survival of Microorganisms 15
Microwave Cooks Frozen Food Safely 15
Washers 15
Horizontal-Axis Washing Machines - Gaining Popularity 15
Coffee Makers 15
Mixers 16
Electric Irons 16

3. Mergers and Acquisitions 16

4. Strategic Corporate Developments 22

5. Product Launches 27

6. A North American Perspective 42

6a. United States 42
Appliance Market - Large and Homogeneous 42
Innovations Bailout Sinking Industry 42
Market Witness Shift in Production Operations 43
Saturated Market Leaves Minimal Scope for Growth 43
Replacement Demand - Contributes a Major Part to Overall Sales 43
Increasing Market for Small Kitchen Appliances 43
Appliance Market - Stricken by Government Regulations 44
Demand for Energy Star Products on the Rise 44
Leading Players 44
Entry Barriers 44
Table 9: Leading Home Appliance Brands in the US (2005):
Sales in US$ Billion for Whirlpool, GE Consumer Products,
Kenmore (Sears), Maytag, and Electrolux 45
Competitive Scenario 45
Outlook 45
Table 10: US Market for Major Electric Household Appliances
by Product Segment - Compactors, Dishwashers, Disposers,
Dryers, Freezers, Microwave Ovens, Range Hoods, Electric
Ranges, Refrigerators, Vacuum Cleaners, Washing Machines,
Water Heaters (Electric), Room ACs, and Others Independently
Analyzed with Annual Sales Figures in ‘000 Units for Years
2003 through 2010 46

Table 11: US Major Electric Household Appliances Market (2004
& 2008): Percentage Breakdown of Unit Sales by Product
Segment - Compactors, Dishwashers, Disposers, Dryers,
Freezers, Microwave Ovens, Range Hoods, Electric Ranges,
Refrigerators, Vacuum Cleaners, Washing Machines, Water
Heaters (Electric), Room ACs, & Others 47

Table 12: US Market for Small Electric Household Appliances
by Product Segment - Blenders, Bread Makers, Broilers, Can
Openers (Electric), Coffee Makers, Electric Knives, Food
Choppers, Food Processors, Irons, Mixers, Toaster Ovens,
Toasters, Waffle Irons, and Miscellaneous Independently
Analyzed with Annual Sales Figures in ‘000 Units for Years
2003 through 2008 48

Table 13: US Small Electric Household Appliances Market (2004
& 2008): Percentage Breakdown of Unit Sales by Product
Segment - Blenders, Bread Makers, Broilers, Can Openers
(Electric), Coffee Makers, Electric Knives, Food Choppers,
Food Processors, Irons, Mixers, Toaster Ovens, Toasters,
Waffle Irons, and Miscellaneous 49

6b. Mexico 49
Market Scenario 49

7. A Japanese Market Perspective 50
Market Profile 50
Demanding Consumers Income Drive Growth 50
Favorable Brand Image of Japanese Products 50
Design of Products According to Lifestyle 50
Convenience and Time Saving Gadgets 50
Economic Expansion Spurs Demand for Appliances 50
Average Price in Japan Higher than Overseas Market 50
Japanese Manufacturers Reel Under Intense Competition 50
Table 14: Japanese Market for Major Electric Household
Appliances by Product Segment -Compactors, Dishwashers,
Disposers, Dryers, Freezers, Microwave Ovens, Range Hoods,
Electric Ranges, Refrigerators, Vacuum Cleaners, Washing
Machines, Water Heaters (Electric), Room ACs, and Others
Independently Analyzed with Annual Sales Figures in ‘000
Units for Years 2003 through 2008 51

Table 15: Japanese Major Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Product
Segment - Compactors, Dishwashers, Disposers, Dryers,
Freezers, Microwave Ovens, Range Hoods, Electric Ranges,
Refrigerators, Vacuum Cleaners, Washing Machines, Water
Heaters (Electric), Room ACs, and Others 52

Table 16: Japanese Market for Small Electric Household
Appliances by Product Segment -Blenders, Bread Makers,
Broilers, Can Openers (Electric), Coffee Makers, Electric
Knives, Food Choppers, Food Processors, Irons, Mixers,
Toaster Ovens, Toasters, Waffle Irons, and Miscellaneous
Independently Analyzed with Annual Sales Figures in ‘000
Units for Years 2003 through 2008 53

Table 17: Japanese Small Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Product
Segment - Blenders, Bread Makers, Broilers, Can Openers
(Electric), Coffee Makers, Electric Knives, Food Choppers,
Food Processors, Irons, Mixers, Toaster Ovens, Toasters,
Waffle Irons, and Miscellaneous 54

8. A European Perspective 54
West European Household Appliances Market Experiencing Rough
Phase 54
East European Markets Record Rise in Demand 54
Low Margins to Manufacturers 55
Saturation Levels High for Several Products 55
Shifting Preferences of Customers 55
Leading Players 55
Consolidation Among European Manufacturers 55

8a. Germany 55
Under Expansion and Restructuring Mode 55
Imports Affect Local Market 56
High Degree of Saturation Subdues Sales 56
Major Players 56
Market Conditions 56
Buying Decisions 56
Small Appliances Market 57
Table 18: German Market for Major Electric Household
Appliances by Product Segment -Compactors, Dishwashers,
Disposers, Dryers, Freezers, Microwave Ovens, Range Hoods,
Electric Ranges, Refrigerators, Vacuum Cleaners, Washing
Machines, Water Heaters (Electric), Room ACs, and Others
Independently Analyzed with Annual Sales Figures in ‘000
Units for Years 2003 through 2008 57

Table 19: German Major Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Product
Segment - Compactors, Dishwashers, Disposers, Dryers,
Freezers, Microwave Ovens, Range Hoods, Electric Ranges,
Refrigerators, Vacuum Cleaners, Washing Machines, Water
Heaters (Electric), Room ACs, and Others 58

Table 20: German Market for Small Electric Household
Appliances by Product Segment - Blenders, Bread Makers,
Broilers, Can Openers (Electric), Coffee Makers, Electric
Knives, Food Choppers, Food Processors, Irons, Mixers,
Toaster Ovens, Toasters, Waffle Irons, and Miscellaneous
independently Analyzed with Annual Sales Figures in ‘000
Units for Years 2003 through 2008 59

Table 21: German Small Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Product
Segment - Blenders, Bread Makers, Broilers, Can Openers
(Electric), Coffee Makers, Electric Knives, Food Choppers,
Food Processors, Irons, Mixers, Toaster Ovens, Toasters,
Waffle Irons, & Miscellaneous 60

8b. Italy 60
Overview 60
Competitive Scenario 61
Table 22: Italian Market for Major Electric Household
Appliances by Product Segment -Compactors, Dishwashers,
Disposers, Dryers, Freezers, Microwave Ovens, Range Hoods,
Electric Ranges, Refrigerators, Vacuum Cleaners, Washing
Machines, Water Heaters (Electric), Room ACs, and Others
Independently Analyzed with Annual Sales Figures in ‘000
Units for Years 2003 through 2008 61

Table 23: Italian Major Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Product
Segment - Compactors, Dishwashers, Disposers, Dryers,
Freezers, Microwave Ovens, Range Hoods, Electric Ranges,
Refrigerators, Vacuum Cleaners, Washing Machines, Water
Heaters (Electric), Room ACs, and Others 62

Table 24: Italian Market for Small Electric Household
Appliances by Product Segment - Blenders, Bread Makers,
Broilers, Can Openers (Electric), Coffee Makers, Electric
Knives, Food Choppers, Food Processors, Irons, Mixers,
Toaster Ovens, Toasters, Waffle Irons, and Miscellaneous
Independently Analyzed with Annual Sales Figures in ‘000
Units for Years 2003 through 2008 63

Table 25: Italian Small Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Product
Segment - Blenders, Bread Makers, Broilers, Can Openers
(Electric), Coffee Makers, Electric Knives, Food Choppers,
Food Processors, Irons, Mixers, Toaster Ovens, Toasters,
Waffle Irons, and Miscellaneous 64

8c. United Kingdom 64
Overview 64
Small Household Appliances Market 64
Market Moves Towards Consolidation 65
Table 26: UK Market for Major Electric Household Appliances
by Product Segment - Compactors, Dishwashers, Disposers,
Dryers, Freezers, Microwave Ovens, Range Hoods, Electric
Ranges, Refrigerators, Vacuum Cleaners, Washing Machines,
Water Heaters (Electric), Room ACs, and Others Independently
Analyzed with Annual Sales Figures in ‘000 Units for Years
2003 through 2008 65

Table 27: UK Major Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Product
Segment - Compactors, Dishwashers, Disposers, Dryers,
Freezers, Microwave Ovens, Range Hoods, Electric Ranges,
Refrigerators, Vacuum Cleaners, Washing Machines, Water
Heaters (Electric), Room ACs, and Others 66

Table 28: UK Market for Small Electric Household Appliances
by Product Segment - Blenders, Bread Makers, Broilers, Can
Openers (Electric), Coffee Makers, Electric Knives, Food
Choppers, Food Processors, Irons, Mixers, Toaster Ovens,
Toasters, Waffle Irons, and Miscellaneous Independently
Analyzed with Annual Sales Figures in ‘000 Units for Years
2003 through 2008 67

Table 29: UK Small Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Product
Segment - Blenders, Bread Makers, Broilers, Can Openers
(Electric), Coffee Makers, Electric Knives, Food Choppers,
Food Processors, Irons, Mixers, Toaster Ovens, Toasters,
Waffle Irons, and Miscellaneous 68

8d. Rest of Europe 68
Czech Republic 68
Denmark 68
Poland 68
Sweden 69
The Netherlands 69
Growth Factors 69
Consumer’s Preferences 69
Dynamics of Distribution 69

9. An Asian Perspective 70
Asian Appliance Market - Dominated by a Few Large Players 70
Economic Trends and the Impact 70
Foreign Firms Make a Beeline for the Asian Market 70
Asian Appliance Industry - An Emerging Industry 70
Appliances Industry in Major Regions of Asia 70

9a. China 70
The Rising Presence of the Dragon 70
Appliance Industry Evolves into an Independent Industrial System 71
The Global Manufacturing Hub 71
New Directives Fail to Affect Exports 71
Small Appliances Post Sturdy Gains 72
Air Conditioning Market Displays Slow Growth 72
Increase in Exports of Cooktops and Ovens 72
Overcapacity - A Burden on Profitability 72
Low Profitability Leads to Consolidation 72
Foreign Firms Reduce Prices to Gain Competitive Edge 72
Top Appliance Consumer in the Asian Market 73
Varying Preferences 73
Entry of Global Majors 73
Government Policies Pave Way for Foreign Investment 73
Appliance Makers Adopt Restructuring and Diversification 73
Manufacturers Undertake New Ventures 73
Factors Driving Growth in the Appliance Market 73
Increasing Personal Incomes 73
Trendy and Sophisticated Products 74
Improvement in Standard of Living 74
Changing Attitudes of Customers 74
Replacement Demand 74
Energy Efficient Appliances 74
Market Trends 74
Distribution Structure 74
Chain Stores 74
International Presence 75
Outlook 75
Table 30: Chinese market for Major Electric Household
Appliances by Product Segment -Compactors, Dishwashers,
Disposers, Dryers, Freezers, Microwave Ovens, Range Hoods,
Electric Ranges, Refrigerators, Vacuum Cleaners, Washing
Machines, Water Heaters (Electric), Room ACs, and Others
Independently Analyzed with Annual Sales Figures in ‘000
Units for Years 2003 through 2008 75

Table 31: Chinese Major Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Product
Segment - Compactors, Dishwashers, Disposers, Dryers,
Freezers, Microwave Ovens, Range Hoods, Electric Ranges,
Refrigerators, Vacuum Cleaners, Washing Machines, Water
Heaters (Electric), Room ACs, and Others 76

Table 32: Chinese Market for Small Electric Household
Appliances by Product Segment - Blenders, Bread Makers,
Broilers, Can Openers (Electric), Coffee Makers, Electric
Knives, Food Choppers, Food Processors, Irons, Mixers,
Toaster Ovens, Toasters, Waffle Irons, and Miscellaneous
Independently Analyzed with Annual Sales Figures in ‘000
Units for Years 2003 through 2008 77

Table 33: Chinese Small Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Product
Segment - Blenders, Bread Makers, Broilers, Can Openers (
Electric), Coffee Makers, Electric Knives, Food Choppers,
Food Processors, Irons, Mixers, Toaster Ovens, Toasters,
Waffle Irons, and Miscellaneous 78

9b. India 79
Overview 79
South India Represents a Significant Market 79
Small Appliances - A Competitive Market 79
A Promising Ground for Leading Multinationals 79
Domestic Companies Strive to Keep Pace with Multinationals 79
Domestic Products - Designed to Meet Local Requirements 80
Urban Areas Reflect Huge Market with Potential Demand 80
Table 34: Indian Market for Major Electric Household
Appliances by Product Segment -Compactors, Dishwashers,
Disposers, Dryers, Freezers, Microwave Ovens, Range Hoods,
Electric Ranges, Refrigerators, Vacuum Cleaners, Washing
Machines, Water Heaters (Electric), Room ACs, and Others
Independently Analyzed with Annual Sales Figures in ‘000
Units for Years 2003 through 2008 80

Table 35: Indian Major Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by Product
Segment - Compactors, Dishwashers, Disposers, Dryers,
Freezers, Microwave Ovens, Range Hoods, Electric Ranges,
Refrigerators, Vacuum Cleaners, Washing Machines, Water
Heaters (Electric), Room ACs, and Others 81

Table 36: Indian Market for Small Electric Household
Appliances by Product Segment - Blenders, Bread Makers,
Broilers, Can Openers (Electric), Coffee Makers, Electric
Knives, Food Choppers, Food Processors, Irons, Mixers,
Toaster Ovens, Toasters, Waffle Irons, and Miscellaneous
Independently Analyzed with Annual Sales Figures in ‘000
Units for Years 2003 through 2008 82

Table 37: Indian Small Electric Household Appliances Market
(2004 & 2008): Percentage Breakdown of Unit Sales by
Product Segment - Blenders, Bread Makers, Broilers, Can
Openers (Electric), Coffee Makers, Electric Knives, Food
Choppers, Food Processors, Irons, Mixers, Toaster Ovens,
Toasters, Waffle Irons, and Miscellaneous 83

9c. Indonesia 83
Increasing Imports Pose Threat to Local Producers 83
Imports 84
Distribution 84

9d. Philippines 84
Demographic Trends 84
Growing Preference for Domestic Products in Small Appliances
Segment 84

9e. Singapore 85
Household Appliances Market 85
Kitchen Appliances - An Expanding Market 85
Consumer Preferences 85
Competition 85
Distribution Channels 85

9f. South Korea 85
Domestic Production Substitute Imports 85
Regulatory Environment 85
An Emerging Exports Market 86
High Market Penetration of Major Electric Household Appliances 86
USA - The New Export Market 86

9g. Taiwan 86
Consumer Profile 86
Electric Appliances - A Growing Market 86
Imports Grow at a Modest Pace 86
Competition 86
Modes of Marketing 87

9h. Thailand 87
“Neighboring” Rivalry 87
Energy Conservation Programs Encourage Manufacturers to Boost
Efficiency 87
Kang Yong Electric - A Major Player 87

9i. Vietnam 87
Market Profile 87
Entry Barriers 88
Prospects 88

10. A Latin American Perspective 88

10a. Argentina 88
Market Overview 88
Household Penetration 89

10b.Brazil 89
Household Penetration 89
Table 38: Brazilian Market for Major Electric Household
Appliances by Product Segment -Compactors, Dishwashers,
Disposers, Dryers, Freezers, Microwave Ovens, Range Hoods,
Electric Ranges, Refrigerators, Vacuum Cleaners, Washing
Machines, Water Heaters (Electric), Room ACs, and Others
Independently Analyzed with Annual Sales Figures in ‘000
Units for Years 2003 through 2008 89

Table 39: Brazilian Major Electric Household Appliances
Market (2004 & 2008): Percentage Breakdown of Unit Sales by
Product Segment - Compactors, Dishwashers, Disposers, Dryers,
Freezers, Microwave Ovens, Range Hoods, Electric Ranges,
Refrigerators, Vacuum Cleaners, Washing Machines, Water
Heaters (Electric), Room ACs, and Others 90

Table 40: Brazilian Market for Small Electric Household
Appliances by Product Segment -Blenders, Bread Makers,
Broilers, Can Openers (Electric), Coffee Makers, Electric
Knives, Food Choppers, Food Processors, Irons, Mixers,
Toaster Ovens, Toasters, Waffle Irons, and Miscellaneous
Independently analyzed with Annual Sales Figures in ‘000
Units for Years 2003 through 2008 91

Table 41: Brazilian Small Electric Household Appliances
Market (2004 & 2008): Percentage Breakdown of Unit Sales by
Product Segment - Blenders, Bread Makers, Broilers, Can
Openers (Electric), Coffee Makers, Electric Knives, Food
Choppers, Food Processors, Irons, Mixers, Toaster Ovens,
Toasters, Waffle Irons, & Miscellaneous 92

10c. Chile 92
Market Overview 92
Market Penetration 93
Major Players 93

10d.Dominican Republic 93
Consumer Profile 93
Imports 93

10e. Venezuela 94

10f. Rest of Latin America 94
Market Overview 94


GLOBAL DIRECTORY