Asia-pacific major home appliances grew at moderate rates in the past due to low per capita spending on the major appliances, therefore the market has immense potential for growth. The main driving factors are an innovation by the manufacturers in the market is driven by the rising housing stock, rising housing income, and growing premiumization across households in the region.
High brand recognition is seen in the region with companies catering to the demand by developing products according to the taste and preferences of the consumer in the developed markets. While positive growth has been observed in the developing nation due to rising income levels.
Countries in the region are within different growth stages while developed markets have entered into premiumization, multifunctional, and customized smart appliances that will further drive the growth of large appliances in the market.
Key Market Trends
Rising Exports of Refrigerator and Freezer Home Appliances from Asia-Pacific Region
There has been a rise in overall exports of refrigerators and freezers in 2019 with a 13.8% increase from the period over the last five years. However, y-oy, the value of globally exported refrigerators and freezers fell by -0.8% from 2018 to 2019. China is leading the country in Asia- Pacific market in terms of exports of refrigeration appliances. Overall Asia held the largest share amounting to 42% share of the total exports worldwide.
A fridge or refrigerator is considered an essential home appliance for many countries in Asia- Pacific region countries some of them include China and India. The COVID-19 pandemic has also led to the rise in the sale of refrigerators in the region as many nations and people facing the pandemic are stocking up on essentials and hence raising the demand for refrigeration appliances. The online distribution channel is seeing a huge demand for the buying and selling of large appliances as they are cost-effective.
Increase in Number of Households Driving the Market
China is the largest market for household appliances among other Asia-Pacific countries and major manufacturers in the region. Increasing household innovation along with rising urbanization in advanced and innovative household solutions are projected to fuel the product demand. The rising number of households is expected to demand large home appliances such as air conditioners, refrigerators, washing machines, and microwave ovens in the category.
Brands are focusing on offering consumer’s experience while organizing several arts and exhibitions in the market. Online retailers in the market are partnering with offline retailers to display their products. regional and local brands dominate the major appliances market in the Asia- Pacific market including Midea, Haier, Hisense, Gree, from China, Samsung and LG from Korea, Videocon from India, and Hitachi from Japan. The market is highly innovative and manufacturers are opting for low-cost pricing, innovation, and differentiation to promote the sale of their appliances and also customize products according to clients’ requirements.
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