Asia Pacific Large Appliances Market Outlook to 2020

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Asia Large Appliances Market Report 2020
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• How the Asia Pacific Large Appliances Market Is
  Positioned?
• Asia Pacific is the most populous region in
  the world constituting more than 45 of the total
  population. It is fastest growing region in the
  world. Most of the countries in the region are
  politically stable and economically robust.
  People have become more affluent and there is
  significant rise in personal disposable income.
  A large appliance which was considered a luxury
  in most of the emerging countries has now become
  necessity. Market is largely dominated by Korean,
  Chinese and Japanese brands in the region
  including Samsung, LG, Haier, Gree, Videocon,
  Midea, TCL, Hisense and many others. Japanese
  brands have reputation being good quality and
  Chinese goods are relatively among the cheapest.
  Korean brands are a blend of two providing
  better quality at reasonable cost. Market for
  large appliances is very closely related to the
  consumer confidence of the people in the
  country.

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• Availability of higher personal income
• Which is another important factor affecting
  the sales of large appliances have shown
  continuous rise in the period of time for most of
  the developing countries in the region. Market
  for large appliances was estimated at USD
  billion in 2015.In 2012 market was estimated at
  billion and has registered continuous growth
  till 2014 when it achieved its peak value of USD
  billion before declining in 2015.Rising
  urbanization, shift towards manufacturing and
  services based economy, and improving social
  indicators, rise in wages were the major factors
  promoting the sales of large appliances in the
  region. Demand for basic and economical product
  was high in demand in emerging countries as
  majority of the people are in middle income group
  who are very price conscious. Government
  policies and growing awareness about environment
  friendly products played a major role for
  increased demand for large appliances in the
  region.

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• Figure Asia Pacific Large Appliances Market Size
  by Revenues in USD Billion, 2012-2015

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• Market Size for Japan Large Appliances Market
• Japan is among the most developed nations in
  world and people in Japan have very high
  standards of living. Consumer experience is the
  very important factor while developing the
  product for Japanese large appliances market.
  Total demand for large appliances has declined
  from million in 2012 to million 2015.
  Percentage decline in terms of revenue was less
  compared to percentage decline in terms of number
  of appliances sold as demand for high end
  products has increased. Increased concern for
  environment and value added features with smart
  technologies has promoted the sales of appliances
  with high price tag. Japan is home to some of
  the prominent large appliances brand in the world
  which includes Panasonic, Hitachi, Daikin, Sharp,
  and others. Demand for high end technology
  products, loyalty to domestic brand, better after
  sale service and replacement of old product with
  latest and upgraded appliances were key growth
  drivers creating demand for large appliances in
  Japan.

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• Figure Japan Large Appliances Market Size by
  Revenues in USD Million, 2012-2015

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• Market segmentation by major products
• Market for large appliances is dominated by
  demand for air conditioners in Japanese large
  appliances market. In 2015, million units of
  air conditioners were sold in Japan large
  appliances market. This was of total number of
  large appliances sold in Japan Market. Television
  sales with market share of has was second most
  sold large appliance totaling million units.
  Washing machine and refrigerator were sold in
  nearly equal numbers, with each selling million
  units in 2015 accounting for market share
  each.
• Trade scenario for Japan
• Exports over the period have declined owing
  to closure of manufacturing bases of large
  appliances in Japan. Though the large appliances
  market is dominated by domestic companies many
  products were imported from manufacturing bases
  outside Japan due to unavailability of raw
  material and intermediary product in Japan.
  Import value is much higher than exports but has
  also declined with shrinking Japanese market for
  large appliances. Air Conditioner was most
  imported item in terms of value.

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• Major Distribution Channel
• Distribution network of large appliances in
  Japan was majorly dominated by brick and mortar
  stores across Japan with sales largely dominated
  by large retail chains such as Yamada Denki, Bic
  Camera and others. Online shopping in Japan is
  dominated by market place like Rakuten or by mall
  sites. Several large retailers such as Yamada
  Denki and Bic Camera have their own online
  platform. Product delivery is the major
  determining factor for choosing the medium of
  sales. Logistics handling of large appliances in
  Japan is very fast, most appliances are expected
  to be delivered by next day. Delay in excess of 2
  days is not accepted. For a small country like
  Japan such expectation are practical and is met
  by most retailers in both online and offline
  mode.
• Recycling in Japan
• Japan enacted Home Appliances Recycling Law
  in 2000. The law requires that responsibility of
  recycling lies on all stakeholders of the large
  appliances from consumer to manufacturer and
  everybody has to share the burden. The consumers
  must return the large appliances to retailers and
  pay for the cost of transport and recycling as
  announced every year. The retailer in turn has to
  take back the appliances they have sold.

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• The government has also appointed designated
  bodies to collect the old appliance. Cost of
  returning the large appliances is variable and is
  dependent on company as well as the appliance
  returned. In 2015 10,879,000 units of old large
  appliances were returned as per data released by
  Ministry of Economy Trade and Industry. Cost of
  returning the large appliances is variable and is
  dependent on company as well as the appliance
  returned.
• Market Share Of Major Players in Japan Large
  Appliances Market
• Large appliances market in Japan was largely
  dominated by domestic brands. Panasonic, Hitachi,
  Sharp, Sony, Toshiba, Mitsubishi are some of the
  leading brands which are operating in Japan large
  appliances market. These companies together
  constitute more than 90.0 of total revenue in
  Japan large appliances market. International
  companies such as LG, Electrolux, Haier have
  limited share with majority of the demand for
  their products coming for some specialized
  product.
• How The Future for Large Appliances Market is
  Anticipated
• High rate of product innovation, growing
  demand for innovated high technology bounded
  products and consumers willingness to pay a
  premium will drive the large appliances market in
  Japan in terms of value. Japanese consumers are
  very loyal to their domestic brands however
  consumer preferences are changing

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• Figure Japan Large Appliances Market Future
  Projections on the Basis of Revenues in USD
  Million, 2016-2020

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• Japanese consumers are very loyal to their
  domestic brands however consumer preferences are
  changing. As the product life cycle of large
  appliances is reducing opportunities will be
  created for new market entrants to capture the
  replacement market for large appliances.
• Large Appliances Market in China
• It was reported that urban households in
  China own television sets, washing machines,
  refrigerators and air conditioners per 100
  households. Urbanization in China was at in
  2015 which translates into million people
  living in urban locations. It has increased from
  air conditioners in 2010 to 34.2 air
  conditioners and to 85.5 refrigerators per 100
  household in rural areas in 2014. Demand for
  large appliances has increased from million in
  2010 to million in 2015 registering a CAGR of
  . In terms of revenue market has increased from
  USD billion in 2010 to USD billion in 2015
  registering a CAGR of . Programs like Go
  rural subsidy, subsidized trade in home
  appliances, launch of energy saving products has
  helped large appliances companies to make
  substantial sales increase in 2011. The sales of
  large appliances during 2013 witnessed launch of
  many smart consumer appliances which became the
  major growth driver especially driving the
  replacement demand. Programs like go rural have
  helped to develop sales network in rural areas
  which has benefitted the market in 2013 and years
  after.

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• Figure China Large Appliances Market Size by
  Revenues in USD Million, 2010-2015

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• Market Segmentation by major ProductsMajority
  of the demand for refrigerator in urban areas was
  witnessed for larger size refrigerators with
  multiple doors, energy saving rating and other
  added features. Average size of the television
  being demanded in China has registered a
  consistent increase. The demand preference has
  increased in first quarter of 2012 from 37.8
  inches to 45.3 inches in first quarter of
  2016.During 2015, around million washing
  machines were sold with an aggregate value of USD
  million. Market demand for new technology based
  air conditioners was on the rise in 2015. Retail
  sale of artistic high end intelligent air
  conditioner accounted for sales volume in 2015
  registering year-on-year increase of .
• How The competition is Prevalant in China Large
  Appliances Market?
• With the growing market for large
  appliances in China, the competition has also
  become healthier. The market for large appliances
  is centered by those players which have an
  extensive presence in international markets and
  developed expertise into the industry. The market
  for television is dominated by Skyworth, followed
  with Hisense and TCL.

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• Haier, Midea and Siemens have also been the
  leading players in washing machines market in
  China. Haier, Hisense and Siemens have garnered
  majority of the share in volume sales for
  refrigerator market in China. In recent years,
  international air conditioner brands gradually
  lost their market share in China. Gree is the
  leading player in China air conditioner market.
• Trade Scenario for Large Appliances in China
• China has been emerged as the leader in the
  export of large appliances to the global market.
  During 2014, it has been reported that
  approximately 40.0 of global production of
  refrigerators and washing machine was made in
  China. In air conditioner segment, the share is
  even higher to . In 2015, exports declined
  significantly on account of low demand in global
  market. US, Japan and South Korea remain the
  major exporter of large appliances to Chinese
  market. South Korean brands like Samsung and LG
  have been the major reason for sudden rise in
  Chinese import for South Korean goods. Imports
  from US registered positive growth in television
  and air conditioner market.

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• Future projection for Large Appliances Market In
  China
• The market for large appliances in China is
  expected to grow at a CAGR of during
  2016-2020, with revenues expected to register at
  USD million by 2020. Improvement in
  performance, quality in terms of energy saving,
  environment friendly, smart innovation and online
  platform will further promote the consumption
  upgrade leading to increased demand for large
  appliances. New energy efficiency code is
  released for refrigerator industry and will be
  implemented from October 2016 which will further
  improve energy efficiency and lead to increased
  demand. The smart trend of large appliance will
  infuse the boundaries of industries and intensify
  industry competition Internet companies will
  enter into the field of smart home appliance,
  which will intensify the industry competition and
  overturn the current profit model of the
  industry. By 2020 it is expected that market
  share of intelligent and smart washing machine
  will grow from in 2015 to 45.0 in 2020, air
  conditioner will grow from to 55.0 and
  refrigerator will grow from to 38.0

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• Figure Future Projections for China Large
  Appliances Market on the Basis of Revenue in USD
  Billion, 2016E-2020E

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• India Large Appliances Market Is Positioning and
  Size
• The sector has been witnessing significant
  growth in recent years, supported by several
  drivers such as the emerging retail boom, real
  estate and housing demand, greater disposable
  income and an overall increase in the level of
  affluence of a significant section of the
  population. The industry is represented by major
  international and local players such as BPL,
  Videocon, Voltas, Blue Star, MIRC Electronics,
  LG, Samsung, Whirlpool and several others. The
  market for large appliances was evaluated at USD
  million during 2015, grown at a CAGR of
  during 2010-2015. The major challenge for the
  consumer durables market is limited penetration
  of home appliances in rural areas. It has been
  witnessed that about of Indian population that
  lives in its villages still does not have access
  to consumer electrical appliances. India
  encompasses with around 400 million of middle
  class population. This population group with
  rising disposable incomes has been instrumental
  in driving demand of various consumer electronic
  devices.

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• Figure India Large Appliances Market Size by
  Revenues in USD Million, 2010-2015

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• Market Segmentation by major product Categories
• Television has accounted for the largest
  revenues in India large appliances market with a
  share reported at during 2015. Consumers are
  switching to flat panel televisions, which have
  led to phasing out of CRT (cathode ray tube) TV
  sets from the market. The washing machines market
  in India has increased at a CAGR of during
  2010-2015. 70 of the washing machines sales in
  India belong to semi automatic range. The
  revenue share of air conditioner sales was
  evaluated at during 2015, which has declined
  from in 2010. Decline in sales for window ACs
  has led to this decline in share which was
  partially offset by surge in sales volume for
  split ACs. Revenues share of refrigerator was
  marked at during 2015. Refrigerator market in
  India is led by LG and Samsung followed by
  Whirlpool with a market share of around during
  2015. Leading five major players in India
  refrigerators market accounts for around
  market share.

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• Trade Scenario for Large Appliances in India
• During the period FY2011-FY2016, export
  of large appliances in India has augmented at a
  CAGR of with export value reported at USD
  million in FY2016. During FY2012 and FY2013,
  the export value for large appliances has
  increased at a growth rate of and
  respectively with value reported at USD million
  by FY2013.India imports televisions,
  refrigerators, and air conditioners mainly from
  China and Southeast Asia. India also imports from
  Japan, Indonesia, Malaysia, and Taiwan. The
  import value for large appliances in India has
  reduced at a CAGR of during the period
  FY2011-FY2016.
• Competition in India Large Appliances Market
• Competition in India large appliances
  market is highly intense. In additional to
  traditional competitors such as Videocon,
  Panasonic, Voltas and Whirlpool, there are other
  leading companies such as LG, Samsung. The
  competition among companies involved in the
  business of large appliances in India is based
  upon several factors including cost, selling
  prices, distribution channels, performance,
  product innovation, product features, quality and
  other incentives been offered on the product.

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• Future Projection of large Appliances market in
  India
• Indian large appliances industry has become one
  of the fastest growing sectors in India,
  primarily driven by growing Indian economy. With
  the uninterrupted inflow of disposable incomes
  and the development of product technology, the
  demand for the diverse consumer durable goods are
  growing.
• With the GST constitutional amendment bill passed
  by the Rajya Sabha followed by some state
  legislatures, the government hopes that it would
  be able to implement GST from April 2017.
• GST will be beneficial to the consumer durable
  industry as the companies currently pay tax in
  the range of 20-25 currently which is likely to
  come down. The GST regime will also reduce the
  price differential between the organized and
  unorganized players. Further logistics and
  inventory handling costs for the companies is
  also expected to decline. All this would lead to
  lower prices for the end consumer and thereby
  result in higher demand for the companies.
• In the coming years, the television sales will
  continue to dominate the market for large
  appliances with a revenues share of during
  2016. The future for television will be LED and
  OLED TV, which has discerned highest growth in
  past years.

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• Figure Future Projections for India Large
  Appliances Market on the Basis of Revenue in USD
  Million, 2016E-2020E

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• Other Major Countries in Asia Large Appliances
  market
• Indonesia Market for large appliances in
  Indonesia was estimated at USD billion in 2015
  registering positive growth rate of . Fewer
  sales were registered due to decline in demand
  from the people and adverse economic situations.
  Philippines The service sector was the main
  factor fuelling the market supported by growth in
  private consumption and increased government
  spending. Market for large appliances in
  Philippines was estimated at USD billion in
  2015. Majority of the demand was from growing
  demand from the people moving to urban location.
• Singapore Singapore is thriving financial hub
  with robust economic situations. Market size for
  large appliances in Singapore was estimated at
  USD million. Market for Large appliances in
  Singapore is largely driven by demand for
  replacement of existing products.

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• Vietnam Vietnam was one of the fastest growing
  economies in Asia in 2014, and manufacturing has
  been the key driver, much of which can be
  attributed to the electronics industry. A growing
  middle class supporting domestic demand has
  further strengthened Vietnams overall
  attractiveness for global manufacturers. Market
  size for Vietnam was estimated at USD billion
  in 2015.
• Malaysia It is an open state-oriented and newly
  industrialized market economy. Many renowned
  Japanese and Korean companies have contributed
  significantly towards the rapid growth of the
  large appliances sector in Malaysia. Market size
  for large appliances was estimated at USD
  billion in 2015.
• Future Outlook of Large Appliances in Asia
  Pacific Region
• Market for large appliances in Asia pacific
  region is expected to register a positive growth
  in the estimation period. Growth will be
  registered on account of recovery in sales in
  Japan and China market leading the revenue to
  increase from USD 154.2 billion in 2016 to USD
  188.6 billion in 2020.

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• Market share of other emerging countries is
  expected to increase in future as demand for
  large appliances register growth in these
  countries due to improving economic situation and
  improvement in social infrastructure and rising
  income level. Availability and reach of
  electricity to remote villages and towns will
  further augment the demand for large appliances
  in the emerging markets. Japan and China are
  expected to recover growth in sales post decline
  and slow expected growth post 2015. Global events
  like compliance to environmental norms to cut
  carbon dioxide emissions, Tokyo Olympics, and
  many others.

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• Figure Future Projections for Asia Pacific Large
  Appliances Market on the Basis of Revenue in USD
  Billion, 2016E-2020E

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• Source https//www.kenresearch.com/consumer-produ
  cts-and-retail/consumer-electronics/asia-pacific-l
  arge-appliances-market/76485-95.html
•  Contact Ken ResearchAnkur
  Gupta, Head Marketing CommunicationsAnkur_at_kenre
  search.com91-9015378249

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