Domestic Appliances Markets Defy the Crisis

MDA – Energy efficiency is the key

One important driving factor within MDA has been the worldwide trend towards energy efficient products. This trend has continued in particular in well developed countries in Western Europe, Japan and Australia despite the economic crisis and has led to increasing sales in the upper price segment of energy intensive product groups such as Refrigerators, Tumble Dryers and Washing Machines.

For the highly saturated, developed countries energy efficient products are surely a driver for future growth in MDA. Furthermore, countries such as China, India, Russia and Brazil still have huge potential due to low market penetration rates and their increasing middle class populations.

Most of the Western European markets have achieved a turnaround in White Goods sales and showed positive development in Q4. Austria and Sweden performed best with two digit growths. Good development in Germany, Italy and France further supported growth of the sector.

The Austrian version of a scrapping bonus for cold appliances resulted in a year-end finish at double-digit growth rates based on significantly higher sales of A++ appliances; customers could apply for a reimbursement of up to 100 € after purchasing a fridge or freezer labelled A++.

The same continuing trend towards improved energy efficiency could be observed in all Western European countries, as well as in all labelled product groups. The most outstanding growth was registered for heat-pump tumble dryers, selling almost 250k units in 2009 compared to slightly above 100k units sold in 2008. Further value drivers were induction hobs and No-Frost cold appliances. It is to be expected that these positive market trends are going to continue into 2010.

SDA – Many Western European markets with positive development during the Christmas period

In total, consumers spent EUR 4.2 billion on Small Domestic Appliances in the fourth quarter of 2009, showing a satisfying development of +1.8% compared to the same period in 2008. Total yearly sales accumulated to EUR 13.7 billion.

As with MDA, the SDA market turned positive in many Western European countries in the last quarter of 2009. Especially the major markets Germany, France, Spain and UK (without currency effect) improved well in sales value.

A deeper look at the driving factors for growth in the fourth quarter of 2009, reveals there was not one main influencing factor, instead growth was influenced by many different product groups. Within electric kitchen appliances markets, mainly Espresso Machines using capsules and Coffee/Espresso Fully Automatic Machines continued to drive growth over this Christmas period. Furthermore, Deep Fryers, traditional Kitchen Machines, Hand Blenders and Choppers contributed to the positive development of SDA in Q4.

In the personal care market, Men's Shavers were growing steadily. Within the floor care market, the huge market of Cylinder Vacuum Cleaners performed quite well, but also the Robotic Vacuum Cleaners, still a small segment within floor care, enjoyed a strong growth.

With regards to the European distribution scene, online sales became more and more important for many SDA markets in Q4. In comparison to Q4 in 2008, online sales for total SDA grew by more than 30% (value) in Western EU. In Q4 2009, online retailers generated most of their revenues with hot beverage makers, followed by vacuum cleaners.