Retail in Asia

In Sectors

Southeast Asia’s domestic appliance sector sustains double digit growth

Sales of major domestic appliances continued its robust growth in 2012, growing 13 percent over 2011.

In a survey conducted by GfK Asia, air-conditioners posted the highest volume growth at nearly 18 percent, with the Philippines and Vietnam even surpassing this with over 20 percent surge in demand.

Consumers in these two fast growing markets have also purchased better and higher end models.

Overall, 19.5 million units of major domestic appliances were sold across Malaysia, Singapore, Thailand, Indonesia, Philippines and Vietnam, generating sales of USD6 billion, with Indonesia registering the highest growth in value among these nations.

The reasons for the robust sales of appliances, according to Home & Lifestyle Account Director Jasmine Lim, are the flourishing domestic economies and rising affluence of these nations.

Another appliance that has experienced an increase in sales is the washing machine, with single tubs making half of all washing machines purchased. The rapid adoption of front load washers was also seen, with value growth expanding from 9 and 68 percent.

Lim emphasized two reasons as to why consumers still spend on front load washers despite being twice the price of single tub models, which are the help of the local government to the manufacturers in the education of consumers and the promotion of front load machines for their greater water efficiency.

Refrigerators are another segment of the major domestic appliance sector that has expanded, with a 10 and 11 percent increase in value and volume, respectively.

Lim foresees the continued growth in sales of single-tub washers and one-door refrigerators due to the penetration in emerging markets, some of which are purchasing only their first washers and refrigerators. She likewise believes that the rising affluent class will increase the demand for more premium appliances, which will only continue the growth of the major domestic appliances sector in the region.