Tough times for the Irish SDA markets

The much publicized slowdown in the Irish economy has certainly been felt in the Small Domestic Appliances market. A 5% fall in volumes over the last year has characterised a consistent decline in fortunes for this sector in recent months.

The Kitchen Appliances market experienced a 6% and 12% decline in volume and value respectively compared to the previous year with an average price decline of 6% over the same period. In contrast to the Irish market, the Eurozone has seen an increase in value of nearly 3% and remained flat in volume along with an increase in average price of 5% thus highlighting a move away from price as a key determinant of purchase which could herald a possible change in fortunes for Ireland going forward.

Food Preparation has been the best performing market in volume and value within the Kitchen Appliances sector driven by the sub categories Hand Blender and Hand Mixer with a value and volume growth of 18%.

As per Kitchen Appliances, the Personal Care market saw a drop in value 9% and a decline of 2% in volume compared to year ending May 2009. These negative declines were driven by the Hair Care markets, a similar story can be drawn for the UK market were Hair Dryers and Hair Stylers remain largely commoditised driven by significant price promotions rather than features remaining the key determinant for purchase.

The majority of Small Domestic Appliances markets will continue to face difficult times over the next 6 months as the economic uncertainty will hinder any short term growth in consumer confidence.