The home appliance market in Italy suffered from sluggish economic conditions, which resulted in only minimal growth of retail volumes in 2018. The home appliances market both in terms of value and volume remains subdued with major appliances segment following a similar pattern while small appliances to remain more dynamic than major appliances in current value terms. The market relies on both domestic production plus imports from the country such as China to meet its demand for appliances.

The outlook for 2019 remains restrained as there are lower consumer confidence and minimal growth in private consumption. Apart from this, there is a government proposal to curtail Sunday shopping which would hit retailers in case of its parliamentary approval. However, there was a demand increase for both medium-sized and small-sized appliances in the country.

The average family size is shrinking in Italy with people living in small and affordable apartments. With fewer space consumers not only need small products but also need smaller or multifunctional appliances that can perform various tasks at the same time, thus making their lives easier.

Key Market Trends

Retailing Grows Through Online Channel While Traditional Supply- Chain Dominates The Market

More than half of the market sells home appliances products through traditional supply chains such as retailers, stores, hypermarkets, etc. This is mainly because users trust in traditional brands and difficulties in carrying out the installation of products independently. Another reason that led to the preference of offline channels is that consumers wanted to inspect and examine a product before making purchase decisions.

Internet retailing is rapidly gaining popularity among Italians for buying home appliances products. It is observed that Italians consumers are becoming increasingly comfortable with the purchase of products online.

On the other hand, the implementation of the promotional strategies of companies and the shift towards online retailing channels will further contribute to the growth dynamics of the sector.

Smart Appliances Are Rapidly Adopted by Household in Italy

The Italian market of smart home solutions is rapidly growing which in turn increases the demand for smart home appliances from households. According to the source, it is known that 40% of Italians had at least one ’smart’ appliance at the home.

In the smart home appliance sector Washing machines which are connected and controlled by an app, in some cases equipped with voice assistants are continuing to drive the sector growth. Technologies such as operating a coffee machine vocally and other trends are also growing quickly and demanded by consumers.

Artificial Intelligence along with the interface with which users manage their Smart homes are gaining momentum in the Italian consumers. Technology savvy and energy-efficient products are another concern developing before the purchase of these products. Smart and connected appliances are thus becoming more and more popular.

Competitive Landscape

The home appliance sector is dominated by international players in major appliance market in Italy and remains highly competitive with a high level of fragmentation, especially among small and medium-sized businesses. Weaker players with poor financial strength already disappeared, while the other small businesses chose to merge with their peers in order to survive. Many players in the local market face liquidity issues and are unable to follow the evolution of consumer demand. Players are majorly focusing on premium products with value-added in terms of design, performance, energy-saving capabilities, connectivity, and smart features.

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