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
Mature market with some potential for growth
An important factor having a positive influence on the overall market for
domestic electrical goods is the rising number of households in the
Netherlands. Every household needs to have its own appliances and as a result
there is still some potential in this very mature market. The fact that the
market is mature is supported by the penetration levels for domestic
electrical appliances, which are generally high in the Netherlands. For
decades the Netherlands has had high standards of living and high disposable
incomes.
Because of the adverse economic conditions in last few years of the review
period, consumers have generally opted for cheaper options. Now that the
economy is slowly recovering, replacement cycles for domestic electrical
appliances are generally becoming a little shorter.
Price war spills over from food to non-food
In the Dutch media there was a lot of attention given to the price war in
food. In non-food however there has also been a huge price war. The Dutch
consumer has become hyper-sensitive to price since retailers such as Media
Markt entered the market, and non-traditional channels such as discount
drugstores and DIY sheds began heavily promoting domestic electrical
appliances. As a result prices have dropped considerably in most sectors,
while in many cases volume has remained stable or even showed some growth. The
internet is another factor that has contributed to the situation. Especially
for bigger appliances, many consumers will compare prices on online product
comparison sites. This transparency of prices has increased pressure on
retailers to offer the lowest prices.
Middle segment struggles to retain consumers
The current situation has meant that brands that were traditionally strong in
the mid-priced segments are struggling to hold on to their share of the
market. Brands need to either be the cheapest or offer superior quality and
design. As a result many brands find themselves unable to compete as they are
stuck in the middle. Unless a manufacturer finds a clear position in today' s
market it will struggle to keep its head above water.
Big group of consumers still willing to spend on quality and design
At the top end of the market the exclusive brands that offer products with
many features and a striking design prove that there still is a large group of
consumers willing to spend money on domestic electrical appliances. The
kitchen has become one of the most important rooms in the house and people who
can afford to spend money on luxury are very interested in having the best of
the best. Appliances that clash with the design of a new kitchen will often be
replaced by a new range of appliances. Metal look appliances are very
fashionable and these go well with most modern kitchens.
Big international players dominate the Dutch market
The Dutch market for domestic electrical appliances is dominated by the big
international players. Companies such as Swedish giant Electrolux Nederland BV
and Willem van Rijn Huishoud-elektro BV/ Siemens Nederland BV (the national
brand owners of the German powerhouse Bosch-Siemens Hausgeräte) are the
leading players in home laundry appliances and refrigeration appliances. In
this market Whirlpool Nederland BV and Miele Nederland BV also have a
significant share, but are still niche players. In dishwashers BSH is leading
the pack, while Atag Etna Pelgrim Home Products BV and BSH lead in large
cooking appliances.
For small electrical appliances two different companies are leading the way.
Royal Philips Electronics NV and Groupe SEB Nederland BV are very much in
charge of small domestic electrical appliances, while local player Princess BV
is making great strides forward by offering attractive value for money
products.
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