Analyst Insight by Lorenza Della Santa, Senior Analyst, Consumer Appliances
In a first for Passport: Consumer Appliances, Euromonitor International is pleased to announce the addition of production and trade data and analysis on Major Appliances.
Global production of Major Appliances (including air conditioners) grew by 9% in volume terms in 2011, compared to retail sales growth of 7%. Around 70% of global output now comes from Asia Pacific, which alone manufactured an additional 54 million units in 2011, accounting for almost all of the extra units produced globally. Eastern Europe emerges as the second fastest growing region last year, with an increase in output of almost 5 million units.
Given the high costs associated with manufacturing and shipping ‘big ticket’ major appliances around the world, developing a coherent production strategy is a key factor in the long-term performance of major international players.
It’s clear that the production landscape is shifting as these strategies are implemented, given impetus by new economic realities, and Euromonitor International’s new analysis comprehensively maps that change: where to and where from, how quickly, which companies, and whether all major appliance categories are impacted in the same way.
Did you know?
- From 2006 to 2011 microwave production in Asian Pacific excluding China, fell, as Thailand and South Korea’s capacity declined. However, India, Vietnam and Malaysia are taking up that slack, with Malaysia posting the second biggest growth in 2011 after China.
- LG and Samsung have chosen Eastern Europe for their first European plants, accounting jointly for 36 per cent of the regional increase in output recorded between 2006 and 2011.
- Turkey posted the second biggest increase in dishwasher production in 2011, after China, with output increasing by almost half a million units. In doing so, Turkey overtook Germany to become the world’s third largest dishwasher manufacturer. This is no coincidence, given that among the companies responsible for this increase is BSH, which relocated part of its production to Turkey and now accounts for 16% of the country’s output.
- Poland is the world’s largest exporter of automatic tumble dryers, 3.7 million units in 2011. This represents an increase of some 170% in five years, a consequence of combining relatively low cost manufacturing with relative proximity to key markets in Western Europe.