Where Consumers Shop for Consumer Appliances

September 2024

E-commerce continues to take share from retail offline, due to convenience, wide product options and frequent deals. Small appliances are leading the e-commerce sales as consumers are more willing to buy those online. However, retail offline still holds a majority of global appliances sales. While we will continue to see retail e-commerce taking larger portion of appliances sales, retail offline is not losing its relevance, but rather that consumers’ shopping journey is getting more complex.

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This report comes in PPT.

Key findings

Challenging market for the industry in 2023 especially in mature markets

In 2023, consumers’ budgets continued to be squeezed by post-pandemic economic downturn, exacerbated by continuing political instabilities. Emerging markets fared better in 2023 than developed markets, where higher saturation was seen in some product categories.

Despite the strong growth of e-commerce, store-based channels are resilient

Retail offline continues to hold a dominant proportion of global consumer appliances sales, as a go-to option for consumers that prefer to see and try appliances before their purchases. However, over the review period, its share has declined due to rapid developments in the retail e-commerce channel.

E-commerce has stabilisedafter the pandemic uptake but has not decreased since

E-commerce continues to take share from retail offline, as many prefer it for its convenience, wide product options and frequent deals. Small domestic appliances are leading e-commerce sales as consumers are more willing to buy those online compared to big-ticket items.

Non-retail channels have seen challenges due to weak property market

The builder merchants and construction channel has seen fluctuation in the last few years, as its performance is closely linked to the housing market and house renovation projects. The channel will likely see recovery and growth over the forecast period as aesthetics and seamlessly-fitted appliances are increasingly important to consumers.

Recovery from economic downturn is slow but likely to pick up due to innovations

While the industry is only slowly recovering in 2024, it is likely to see the appliances market picking up faster growth onwards. The industry has strong growth prospects, supported by trends such as smart home and AI-enabled features, enhancing consumers’ experience at home.

Scope
Key findings
The appliances market continued to be challenging in 2023
Major appliances struggling in 2023 but starting an upwards trend
Economic uncertainties slowed down growth, but most regions are on the road to recovery
E-commerce continues to take portion of the dominant retail offline channels
E-commerce continues its growth across categories and regions
Stabilisation of growth in e-commerce with the notable exception of Asia Pacific
Expert advice and guidance offered by specialist retailers still valued by consumers
Store-based channels show resilience despite the rise of e-commerce
Squeezed by retail e-commerce, specialists try to match e-commerce and delivery services
Leading specialists show ability to transform into omnichannel
S low recovery for home products specialists after the pandemic
Home products specialists remain relevant especially in Western Europe and North America
P rivate label is more popular in small appliances, but e-commerce contributes to its decline
Private label is negligible in many regions including Asia Pacific and Eastern Europe
E-commerce growth is flat after the pandemic uptake but unlikely to decrease
Stabilisation post-pandemic in most regions, with the exception of Asia Pacific
Top three leading companies' rankings remain unchanged as they enjoy consumers’ trust
Challenging period for builder merchants and construction channel but growth is expected
Slow start for consumer appliances, likely to improve over the forecast period
Growing market for refurbished appliances is likely to impact how consumers shop
Key takeaways

Consumer Appliances

Consumer Appliances is the aggregation of major appliances and small appliances. Major appliances are an aggregate of the following categories: refrigeration appliances, home laundry appliances, dishwashers, large cooking appliances and microwaves. Small appliances are an aggregation of the following categories: food preparation appliances, small cooking appliances, vacuum cleaners, irons, personal care appliances, heating appliances and air treatment appliances.

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