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Southeast Asian Consumers Spend More on Appliances

GfK logo_smallThe Small Domestic Appliances (SDA) market in Singapore, Malaysia, Indonesia, Vietnam and Thailand in the last 12 months totaled more than USD 804 million, expanding by nearly 6 percent in value compared to the same period a year ago.

According to GfK retail audit findings, this value growth is a result of consumers buying nearly 1.6 million more small household appliances such as food preparation appliances, irons, rice cookers and vacuum cleaners compared to the previous year.

All five markets registered incremental value growth in the range of 1 and 12 percent, with Thailand exhibiting the strongest jump, followed by Indonesia at 8 percent. Thailand is also the country with the highest consumption level as consumers there spent more than USD 235 million on over 9 million units of these appliances, contributing to nearly a third (30%) in value and volume to the combined SDA market in the region.

“The increasing affluence of households, on top of the rising need for convenience has brought about an upgrading phenomenon which we are witnessing especially in developing countries,” noted Jasmine Lim, Account Director for Home & Lifestyle in GfK Asia. “In recent times, our findings have shown escalating sales of higher-end appliances— indication of consumers having greater purchasing power and are switching from buying basic models to the more sophisticated product ranges.”

European brands are registering rising presence in four of the five countries with one in every three food preparation appliances, vacuum cleaners and irons sold in the region being of continental origin.

This has made European manufacturers the dominant contributors to the total sales value in the respective categories.

Among all the small domestic appliances, the region’s consumers purchased the most rice cookers. Over 13.8 million units were sold in the last 12 months; 860,000 units more than a year ago. Generating more than USD 355 million in sales, this appliance is also biggest in terms of market worth.

It is however the vacuum cleaner segment which experienced the greatest volume growth of 8 percent, driven by Indonesia and Thailand whose respective markets saw intensified volume sales by 23 and 17 percent.

“Thanks to the Chinese New Year celebrations across the region, performance of the small domestic appliances sector soared in the first two months of this year as more rice cookers, food preparation appliances and vacuum cleaners were purchased to help households with their cooking and spring cleaning during this period,”  highlighted Lim.

“The uptrend for SDA products is likely to continue, driven especially by strong demand in the region’s developing markets,” said Lim. “A generally positive performance throughout last year and the sustained growth momentum reflected in the first two months of this year present an optimistic outlook for this sector, which is anticipated to remain in healthy territory in the months ahead,” said Lim.

Please Note:

Survey covers five markets in Southeast Asia: Singapore, Malaysia, Indonesia, Thailand and Vietnam.

Survey period: Mar 12 – Feb 13.

Year on year comparison: Mar 12 – Feb 13 VS Mar 11 – Feb 12.

Small domestic appliances includes food preparation appliances, irons, rice cookers and vacuum cleaners.

Source: GfK Asia Pte Ltd, Seraphina.Wee@gfk.com