World Market for Consumer Appliances (Major)

Delivery

This report comes in PPT.

Key Findings

Sustainability

Regulations related to energy, water and product packaging are expected to get stricter. The “Energy efficiency first” principle of the EU’s Energy Union policy, implemented in late 2019, has, for instance, regulations encompassing most of these issues. China announced energy efficiency minimums in 2020. Designed for recyclability and reparability, such regulations are expected to play an important part in moving consumers away from the “throwaway” culture.

New business models and convergence

Companies are trying to diversify revenues from product sales to a recurring service/consumables revenue stream, such as Candy’s WashPass and Whirlpool's Swash laundry detergent. Auto-dosing continues to grow in importance, especially as a key distinguishing feature for home laundry appliances and dishwashers. Indoor farming appliances could see the emergence of a new category.

Smart appliances and home ecosystems

Connected appliances are becoming smarter, leading to AI features that enable increased energy efficiency, inventory management and longer food shelf life. For instance, Haier’s “Internet of Clothing” envisions a seamless experience from washing machine to smart clothing. A critical mass of smart devices installed in homes will lead to appliances that talk to each other, providing a seamless user experience controlled by AI and voice.

The appliance value proposition

The traditional way of selling product features has become outdated, as manufacturers are increasingly looking to sell a product’s experience and its ecosystem, eg the Hoover H-abitat. Showrooms have become experience stores exhibiting the benefit of appliances interacting with each other, in addition to how this can complement modern home designs. Product demonstrations at IFA2020 were centred on the home ecosystem, with many companies showcasing their in-house smart device control platforms.

Omnichannel sales

Appliances are typically researched online and bought in store, where electronics and appliance specialist retailers remain the leading channel of purchase. However, the rise in experience centres has resulted in more customers being comfortable purchasing online instead. The use of AR/VR also enables visualisation of how appliances look in the home. Livestreaming sales increased during the pandemic, and are expected to continue to rise.