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
Domestic electrical appliances grow despite cautious consumer spending
Sales of domestic electrical appliances in Malaysia grew healthily during the
review period with replacement sales and first-time home owners continuing to
be the main drivers for growth. Despite the cautious consumer spending as a
result of increases in electricity and oil prices in 2006, sales of domestic
electrical appliances remained strong. This was mainly driven by strong growth
in house ownership, buoyed by the low interest rates brought about by
aggressive terms due to increased competition in the home loans market.
Large appliances lead growth
Large appliances such as refrigerators and air conditioners with innovative
technology and energy efficient registered impressive volume and value sales
growth. The leading players are shifting towards manufacturing larger capacity
refrigerators and home laundry appliances to enjoy higher profit margins.
Larger appliances are becoming more affordable as well. Established multiple
specialists such as HSL and Harvey Norman have been at the forefront of this
growth, utilising popular media to inform consumers of new technology and
designs, and also offering accessible financial packages as well as technical
services to consumers.
Panasonic leads domestic electrical appliances
Panasonic continued to be the leading company in large and small electrical
appliances in 2006. The company' s strong leadership is attributed to its
long presence in domestic electrical appliances in Malaysia, high-quality
products at affordable prices with full warranty, excellent after-sales
service and wide distribution network. So well established is the Panasonic
brand, that many Malaysians grew up believing that the brand is a local brand.
Hair care appliances lead in personal care appliances
Rapid changes in hair trends in Malaysia drive the growth of hair care
appliances. The trend of Do It Yourself hair styling at home is driving volume
sales growth of hair care appliances such as dryers, multi stylers,
straighteners and curling irons. Hair dryers with ioniser and diffuser
functions which helps to maintain healthier hair and reduce hair damage
enjoyed healthy sales growth in the review period. Such trends are expected to
continue in the forecast period, as the female population in Malaysia is
gaining more financial independence and spending more on beauty and styling
products.
Demand for premium products to continue to soar
Despite the rising cost of living, there is growing polarisation between the
affluent and the poor. It is becoming increasingly evident that the rich are
becoming richer and the poorer are getting poorer. As the number of affluent
Malaysians continues to rise in the future, the demand for sophisticated
products which will help to ease the burden of household chores will continue
to increase. Products with innovative technology which promote a healthy
lifestyle will likely to be in strong demand in the forecast period. Moreover,
strong high-end residential housing development will drive the demand for
premium large kitchen appliances.
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