Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Large kitchen appliances; Small electrical appliances
Executive summary
EXECUTIVE SUMMARY
Improving economic situation in Poland
2005 was the second year in a row that GDP in Poland exceeded 4%. Thus, to a
limited extent, improved the purchasing capacity of the Polish society, and
reversed negative trends in domestic electrical appliances (DEA) sales that
existed in the country until 2003. On the other hand, incomes in Poland,
especially in the case of employees, were several times lower than in Western
Europe, and this made customers limit or postpone buying large domestic
electrical appliances. Also, price was an important factor when choosing a new
product. Sales on instalments, increasingly popular in large outlets, helped
customers overcome the financial barrier.
Domestic electrical appliances market development
Sales of domestic electrical appliances in Poland increased by 4% in 2005 and
by 9% over the review period (2000-2005) in current value terms. Volume sales
in 2005 increased by 4% and by 19% over the review period. The Polish domestic
electrical appliances market is developing, and has large growth and expansion
possibilities for the forecast period. This potential is due to low household
penetration levels concerning many appliances such as tumble dryers,
microwaves, and built-in kitchen appliances. In the case of more traditional
equipment (fridges, cookers, automatic washing machines), many Polish
households have old appliances of more than 10 years of age, and this means
that they are likely to be replaced by new models over the forecast period.
Foreign concerns dominate Polish DEA
Large well-established national and international companies dominated domestic
electrical appliances in Poland in 2005. Low labour and production costs, a
good transportation infrastructure and tax incentives succeeded in attracting
many large international manufacturers to expand their activities in Poland.
They achieved this through acquiring Polish companies, expanding existing
production facilities or building new factories. The national companies
included Amica Wronki SA, Zelmer SA, Wrozamet SA and MPM Product Sp zoo.
Several of the international companies, led by Whirlpool Polska Sp zoo,
established production facilities in Poland, either by acquisition or by
setting up new factories. Other investors in Poland included Electrolux Sp
zoo, BSH Sprzet Gospodarstwa Sp zoo and Merloni Indesit Polska Sp zoo.
Appliances produced in Poland were exported to other European countries, and
very few of them were sold in Poland.
Development of specialist multiple chains and grocery multiples
The majority of domestic electrical appliances in Poland were sold in large
domestic and international specialist multiples and grocery multiples. In
2005, specialist multiples led in both the large kitchen appliances and small
electrical appliances sectors. It also held leading distribution position in
microwaves. Grocery multiples increased its shares, especially in small
electrical appliances. It offered attractive prices for ' no-name' products
imported from the Far East. It is likely to be selling more large electrical
appliances in the forecast period.
Development perspectives
Domestic electrical appliances sales are forecast to increase dynamically, in
both value and volume, between 2005 and 2010. Large kitchen appliances sales
are expected to increase by 24% in volume and by 14% in value terms at
constant 2005 prices, by 2010. Small electrical appliances is likely to
increase by 20% in volume and by 7% in constant value terms over the same
term. The economic situation in Poland and the resulting purchasing capacity
of the Polish will have a decisive influence on the development of domestic
electrical appliances in Poland over the forecast period
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