Southeast Asia Research Report-Vietnam is fastest growing market

Southeast Asian consumers

Southeast Asian Research Report, consumers spent USD57 million more on small domestic appliances in first half of 2013 compared to same time last year: GfK

Southeast Asian consumers
Southeast Asian consumers

Vietnam is fastest growing market; Indonesian consumers snapped up nearly half of regional volume

7 August, 2013, SINGAPORE – Demand for Small Domestic Appliances (SDA) across five key markets in Southeast Asia—Singapore, Malaysia, Indonesia, Thailand and Vietnam surged by 11 percent, expanding the sector’s worth in this region by 15 percent to reach a total of USD431 million in the first six months of this year. Consumers snapped up nearly 16 million units of food preparation machines, irons, rice cookers and vacuum cleaners during this period of time, over 1.8 million units more compared to last year.

Southeast Asia Research Report

Latest GfK retail audit reported the sector’s strong performance in each of the country hitting double digit value growth in the range of 14 to 22 percent, with Vietnam registering the highest growth while the rest of the markets reported expansion in the range of 14 to 15 percent. In terms of sales volume, Vietnam and Indonesia reflected the highest rise in demand at 18 and 17 percent over last year.

“The first two months of the year raked in the highest sales for small household appliances, thanks to Chinese New Year which took place around mid-February,” observed Jasmine Lim, Account Director for Home & Lifestyle in GfK Asia. “Households generally start their preparations a month prior to the celebrations and it is during this period of time when they begin making the necessary purchases.”

The largest market of Indonesia alone contributed to USD145 million or a third (33%) of total small domestic appliances sales, with almost one in every two appliance sold (47%) across the region being bought by a consumer in the country.

Most sought after amongst all the small appliances is the rice cooker, selling over 7.1 million units worth some USD 190 million within the first half of the year. Robust showing across Southeast Asia was mainly driven by Vietnam which reported 31 percent increment in both volume and value.

“Fuzzy logic rice cooker is becoming increasingly popular, especially in the developed markets such as Singapore and Malaysia where consumers are more sophisticated and demand for more advanced functions,” highlighted Lim. “With the heightened efforts by major brands to promote the technology—from educating consumers on its such as ease of usage as well as the ability to cook different types of food beyond just white rice, to in-store demonstration and promotions, it is not surprising to see more consumers choosing such advanced rice cookers over the traditional types.”

Trailing behind in rice cookers in market worth is the Food Preparation category which accumulated USD102 million in sales, although it was the Irons segment which attained the second highest sales volume at 4.7 million units.

“The strong sales momentum attained in the first half of this year is anticipated to sustain for the rest of the year with key products sustaining their good showings,” said Lim. “Given the busy lifestyles of today’s modern society and the increasing demand for convenience, we expect to see a continued growing trend towards more sophisticated appliances that are able to simplify household chores for consumers,” she concluded.

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