Asia Pacific Large Appliances Market Outlook to 2020 presentation

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Title: 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.

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.

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

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.

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

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.

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.

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

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

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.

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

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.

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.

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

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

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.

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

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.

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.

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.

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

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.

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.

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.

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

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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