comment: AMDEA


The white goods market in 2023


Paul Hide, managing director of AMDEA, looks at the challenges and opportunities in the appliance market


B


ack in January of last year we all probably expected 2022 to be a


somewhat calmer year as the worst of Covid-19-related challenges were finally moving behind us and more ‘normal’ day to day ways of working and living returned. The reality, of course, was quite the opposite.


The past year has been, arguably, far more challenging for businesses, with high inflation, rocketing borrowing costs and energy bills, a chaotic and ever changing UK political landscape and rapidly falling consumer confidence in the face of cost of living pressures. In what has been an unprecedented collection of challenges, the 2022 market for appliances has been probably as resilient as could have been hoped for. Yes, we are past the boom years of 2020 and 2021, but sales demand has remained close to 2019 levels and the necessary price rises due to inflationary pressures have largely held firm. AMDEA’s sell-in data tracking shows that


UK shipment volumes for core large appliance categories will be in the region of 11.5 million units in 2022, that is a 12.5% drop on the 13.2m units shipped in 2022, but in line with the market volumes we experienced in 2018 and 2019. Market value has faired better, value declined by


around 5% as the necessary inflationary price rises have fed through to the marketplace. The overall large appliance market is still


worth over £6 billion at retail/e-tail. In general, the premium and built-in market sectors appear to be the most resilient. The small appliance market (which is valued at around £4bn) has also remained buoyant, supported by the continued strong performance in premium sectors such as coffee machines, personal care, air purifiers and by the renewed interest in energy efficient cooking devices – microwave ovens, air fryers and slow cookers have all been strong performers. It is great to see the resilience of the electrical retailer, especially the independent channels. 2022


saw a strong recovery of sales via retail showrooms as customers have returned to in-store browsing and decision making. I’ve spoken to many independent retailers over the past year that have enjoyed sales growth in appliances and are confident that they can maintain this trend in 2023. There is no doubt that the premium sector


remains resilient and, for example, retailers that are focusing on full kitchen solution sales have been able to significantly increase average sales values and improve gross margins. The outlook for 2023 is hard to call, due to the


unknown impacts on consumer confidence and discretionary spending power, but probably not too different overall from the past 12 months in terms of volumes which is likely to lead to value growth as inflationary pressures, whilst expected to ease, will still be with us throughout 2023. What we can expect to see is an increasing demand from households for best-in-class energy and water efficiency, transparency on overall cost of ownership (e.g. maintenance and repair options) and the overall environmental impact of purchases including the recyclability of appliances. Never has it been more important that retail


teams are trained as to how to communicate the sustainability benefits and options relating to the purchasing and using of appliances. AMDEA’s Know Watt’s What campaign aims to


educate householders to use their appliances in the most efficient and sustainable ways. Providing consumers understand and use


the eco- saving technologies designed into the products already in their homes, more than 130 million essential appliances across the UK will collectively make a major contribution to reducing energy and water consumption, supporting the challenge of reaching net zero as well as saving significant amounts on energy bills. AMDEA’s trade tool kit distils this advice in a set of assets for staff training and exclusive use on retailer and e-tailer websites, in newsletters or on social media platforms. Each item highlights the snappy yet reliable hints and tips, developed by AMDEA’s expert panel, that can save homes up to £500 a year.


14 | www.ierdaily.co.uk January 2023


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