The Major Appliances Millionaire’s Club

 

Euromonitor International’s Head of Global Consumer Appliance Research, Simon Maddrell, discusses the major appliances millionaire’s club of 2010. This club is reserved for major appliance manufactures that sold more than one million units in 2010. 40 companies broke the million mark this year.
The top five companies are:

  • Whirlpool
  • Electrolux
  • Haier
  • Bosch
  • LG

Whirlpool still has quite a big advantage in the number one spot, although many of its sales of were helped by stimulus packages aimed at consumer appliances. Haier, in third place, actually had many sales coming from China, but a large part of those sales were due to a subsidy program that has been active since 2009. Because of that program, Haier grew the most out of any other company on the list- about 13% in 2010.

The companies hardest hit in the millionaire’s club are the those doing the bulk of business in developed markets. Developed markets are having the hardest time recovering from recession. Eastern Europe performed poorly in the major appliance market in 2010 as well. Therefore, there is a lot of emphasis for appliance manufactures to maintain share in Western Europe and North America, and expand into emerging markets with the largest middle class.

Maddrell explains that the key winners in the club this year have a high exposure to Asia, and are starting to move into Africa. A key example of this is Electrolux’s acquisition of Olympic Group. If that deal goes through, Electrolux will move up in the Africa / Middle East rankings from tenth to second.

LG and Samsung will continue to move up the rankings, suggests Maddrell, due to their large geographic footprint. Many of LG and Samsung’s sales are now coming from Africa and Latin America. Both companies have a large product portfolio, appealing to consumers with ride ranges of income.

Maddrell concludes with an outlook for the appliance market in the near future. Research and development is an area companies neglected during the recession, but spending is starting to make a comeback in this area. For example, Indesit put aside a large sum of money to invest in the Scholtès brand, a relatively high-end product. Maddrell states that this doesn’t seem like a good investment at first, but once Indesit begins to reposition itself and look towards emerging markets, there will be consumers in parts of Russia and the Middle East that will crave that type of consumer appliance. Maddrell ends by saying there will be an upturn in the market and it will be strong, and when it does happen, appliance manufactures will have to be ready to take advantage of it.

Watch this video on View our YouTube Channel