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Stimulus Packages and the Consumer Appliance Market
Simon Maddrell, Head of Global Consumer Appliances research at Euromonitor International, examines the appliance market in 2010 and how the industry has reacted to the economic stimulus packages in various regions. Maddrell begins the discussion with a forecast for 2011, including a look at markets in the following regions:
- North America
- Latin America
- Europe
Maddrell then addresses the affects of stimulus packages on consumer appliance in North America, Brazil, and China. Analysis of consumer reaction to stimulus packages shows there is a risk that once packages are completed, there will be a dip in appliance sales. Packages targeted at Western Europe are having no effect on the stagnant consumer appliance market there.
In terms of major growth within appliances, refrigeration is the projected highest growing segment. This is due to several factors:
- Refrigeration was sold into retailers in Quarter 1 and 2 in 2010
- It is one of the most essential appliance purchases for consumers
Maddrell then shifts to discuss appliance manufacturers that are at high risk in 2010. Indesit is shown as a prime example, which has seen sharp declines in global revenues since 2008. These declines can be traced to the following reasons:
- The recent closure of three manufacturing plants in Italy
- No production outside of Eastern Europe
- The recent investment in a super-premium brand in Europe