Egypt: New Focal Point for Appliance Manufacturers
Consumer Appliances Industry Analyst, Lorenza Della-Santa, explains how Egypt is becoming the new focal point for appliance manufacturers. The Middle East and Africa is a fast growing region for consumer appliances, surpassing Latin America’s growth rate in 2009-2010. This strong growth is due to two factors:
- the booming Egyptian market
- the faster-than-expected recovery of the South African market
Egypt is not only one of the fastest growing countries in the Middle East and African region, but also in the world. In volume terms, the consumer appliances market in Egypt is expected to double by 2015. This is due to several factors:
- The real GDP has risen from 87 billion USD to 187 USD over the last 5 years
- The population, which is just under 80 million, is set to rise over the next 5 years
Of course, these opportunities have not gone unnoticed by appliance companies willing to invest long-term. Electrolux has recently purchased a 52% share of Olympic Group, the main consumer appliance brand owner in Egypt. Olympic Group holds 25% volume share of the market there.
With the deal, Electrolux will gain:
- A consistent share of the market in Egypt
- The opportunity to tap into the increasing middle class
This middle class has demonstrated the willingness to spend on Western-style consumer appliances. Other companies are looking into the area as well, including the Chinese company Midea which acquired a 35% share of the Egyptian company Miraco.