The rising affluence of consumers in Southeast Asian emerging markets like the Philippines continued to boost sales of major domestic appliances (MDAs), according to research firm GfK Asia.
In a statement issued on Monday, GfK Asia reported “soaring demand” for large appliances including air conditioners, refrigerators, washing machines and microwave ovens across the eight countries it surveyed between January and June 2013.
In the first six months of this year, nearly 11.5 million units of these appliances were sold in eight key markets tracked by GfK Asia, namely the Philippines, Singapore, Malaysia, Thailand, Indonesia, Vietnam, Cambodia and Laos.
Demand in terms of volume rose nearly 20 percent in the first half compared to the previous year while sales in terms of value grew 22 percent.
“Rising affluence coupled with multiple retailers expanding beyond first tier cities has been effectively stimulating the penetration of big household appliances with more widespread reach, enabling more rural dwellers to buy their first of such appliances,” explained Jasmine Lim, account director for home and lifestyle at GfK Asia.
“This mix of consumer development has incited a strong surge in total sales of major domestic appliances in the recent times,” she added.
In the Philippines, a total of 352,680 MDAs, valued at $352.7 million (roughly P15 billion), were sold between January and June this year. Cooling appliances accounted for the bulk of sales at 155,800 units, followed by air conditioners, at 130,500 units. Some 62,200 units of washing machines and 4,300 microwave ovens were sold during the same period.
GfK noted that consumer preferences continued to lean heavily towards the one-door refrigerators, which took up 56 percent share of total volume sold in the region.
However, sales, in terms of value, of the more premium models like the “two-door-side-by-side” refrigerators jumped more than threefold in the Philippines.
“Subsistent segments like single-tub washers and one-door refrigerators will continue to grow as penetration increases in the emerging markets and consumers purchase their first washer and refrigerator,” Lim said.
“At the same time, demand for products at the other end of the spectrum by the rising affluent class will continue to fuel strong demand for larger capacities, new features and better technology and together, these will continue to thrust the sector in this high potential region to even greater heights in the years to come,” she added.
GfK Asia also disclosed that Vietnam emerged as the most significant growth market during the period. It reported a 31-percent rise in consumer spending on major domestic appliances, while countries like Indonesia, Cambodia and Thailand saw a 22-percent growth in their respective MDA market value. Amy R. Remo