domestic appliances market overview
in association with GfK
Value riding high: major appliances in 2010
In 2010 the domestic appliances market saw the signs of bouncing back, mostly as a result technical innovations in the premium sector and a return of the replacement cycle, explains Anthony Williams, GfK Account Director, Major Domestic Appliances.
2010 had the potential to be yet another tough year for major appliances with the housing market still weak affecting initial purchases and the generally poor climate for credit terms. Thanks to key replacement categories, there has been some respite from the gloom of three years of consistent decline and crucially value sales performed far better than expectations. There were three major factors influencing this shift: a boost for the premium sector aided by trade-up to more technical appliances; a return by consumers to replacement buying; and the return of more rapid growth for online purchases which has also contributed to polarisation and gains at the higher end pricepoints.
Market factors The spectre of the VAT rise on 4 January also had a profound effect on consumer
demand for major appliances in the final quarter of the year. This helped bolster both volume and value sales for the year by around 7%, translating to an additional £136 million. The surge towards
Thanks to key replacement categories, there has been some respite from the gloom of three years of consistent decline and crucially value sales performed far better than expectations
“ ”
the end of the year was primarily focused around big ticket kitchen appliances such as built-in ovens, hobs, hoods and dishwashers. This flurry of activity for all major appliance markets was a clear sign that consumers were keen to make their purchases earlier than usual, ahead of January and the VAT increase. Many will argue that the rise makes little difference to the cost of goods, however consumer attitudes suggest that any saving is still better than no saving at all. Average price grew by around 2% in the freestanding sector driven by fridge freezers and home laundry.
Built-in appliances over the year saw prices rise by nearly 6% although much of this IndependentElectricalRetailer
46 BusinessBook2011
Anthony Williams
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