Views: 0 Author: Site Editor Publish Time: 2024-11-18 Origin: Site
Small household appliances combine FMCG and consumer resistance. The data shows that the growth rate of small household appliances in the Asia-Pacific region is most significant in Malaysia and Singapore, the Middle East is led by Israel and Saudi Arabia, Brazil is also growing, and the United States, the United Kingdom, Italy and other countries are experiencing negative growth.
China's supply chain is strong, and if it concentrates on one market, it is easy to saturate the region quickly. Southeast Asia, for example, is a market that attracts not only Chinese brands, but also many local and international brands. Therefore, when evaluating the problem, it is necessary to think deeply about whether the market capacity is sufficient. The market size in Southeast Asia is limited, while China's supply chain is strong, resulting in oversupply and market involution.
According to various data, the revenue of the small household appliances market in Southeast Asia is expected to reach 16.88 billion US dollars in 2024. Although Southeast Asia has a large population base and rapid economic development, the accumulation of market capacity is under great pressure.
Indonesia is the leader in the small household appliance market in Southeast Asia, and its market size is expected to exceed 50.97 billion yuan in 2024, accounting for the largest share of the Southeast Asian market. The growth of the Indonesian market is due to the huge population base and the rise of the middle class, which has created a broad consumption space for the small household appliance market. In addition, the demand for small household appliances in Indonesia is nearly 100 million pieces, and small kitchen appliances are especially popular due to the diverse local food culture.
Offline stores are still the main sales channel, but the proportion of online sales is increasing year by year and is expected to continue to grow in the next few years. E-commerce platforms such as Shopee, Lazada and TikTok Shop have seen strong sales in countries such as Indonesia, the Philippines and Vietnam, with emerging brands such as Gaabor, Simplus and Han River achieving significant results.
In terms of competition, Dreame dominates the small home appliance market in the Philippines, Singapore, Thailand and Vietnam, while Bosch, Black + Decker, Hoover, Rowenta and 360 Appliances are highly competitive in Indonesia and Malaysia. In addition, Chinese brands such as Xiaomi are actively expanding their market share in Southeast Asia, relying on strong product lines and ecological chain systems.
The price of the bear electric kettle and egg cooker is 195 ringgit (about 320 yuan) and 239 ringgit (about 390 yuan) respectively, although it is more expensive than in China, it is nearly 50% cheaper than Panasonic, Lock &Lock, etc., and the Panasonic electric kettle with the same capacity exceeds 400 ringgit (about 654 yuan).
Electric toothbrushes, air fryers and other popular small household appliances that have swept the country have set off a consumption boom in Southeast Asia. Xiaomi, Midea, Joyoung and other well-known brands and many emerging brands have set up branches in Southeast Asia or cooperated with local distributors to rapidly expand their market share.
In the first half of this year, the export sales of domestic small household appliances listed enterprises have achieved good results. Supor's export business increased by 39.29% year-on-year; Xinbao's export revenue increased by 27.05% year-on-year, accounting for more than 70%; Xiaoxiong Electric's export revenue in the Southeast Asian market increased by 26.66% year-on-year.
Taking small kitchen appliances as an example, the main consumer products in Southeast Asia in 2023 are cooking pots, blenders/food processors and fryers, accounting for 24%, 20% and 14% of sales respectively. The air fryer has become a new favorite in the kitchen because the concept of "health" and "convenience" meets the needs of Southeast Asian consumers for healthy eating and efficient living. In 2022, the search volume of "air fryer" in Southeast Asia will increase by more than 200% year-on-year, and although the growth rate of air fryer sales in Asia-Pacific (excluding Chinese mainland) will slow down in 2023, it will still increase by 8% year-on-year.
From the perspective of the competitive landscape, the main brands in the Southeast Asian fryer track are Philips, Electrolux, Gaabor, etc., and the Chinese brand Xiaomi performed well in the Philippines, accounting for 7% of the share, ranking second.
The situation of small household appliances in the household and personal care categories is similar, and the influence of Chinese brands is at the forefront. According to a survey by i - Buzz Asia, in the 2022 Indonesian sweeper brand volume index, Xiaomi ranks first, and Ecovacs ranks fourth; In Vietnam, Ecovacs and Xiaomi are the top two spots. In addition, China-made smart hair dryers, electric hair removal devices, electric toothbrushes and other categories have a high market share, and electric toothbrushes are particularly popular. By the end of 2023, China's electric toothbrush industry accounts for about 60% of the global market share, that is, for every three electric toothbrushes sold in the world, one is produced in China.
Behind the brilliance, however, anxiety spreads.
In the future, the optimization and adjustment of the overseas small household appliance market will mainly stem from technology and product innovation, especially design patents and technology patents. The dividend period brought by channel innovation and expansion is short and easy to saturate.
Product innovation mainly includes material innovation, new product patents, structural function and accessory patents. At present, the functions of core single products are subdivided, and new products raise the consumer threshold through local innovation and consumption scenario innovation, and gradually match the expansion of user life cycle. At the same time, in view of the large differences in global demand, the cost of brand localization marketing is quite high.
In 2024, the growth driver of the small household appliances market in Southeast Asia will be the price advantage of products in addition to product innovation. The development of new social e-commerce platforms and online e-commerce channels may bring small growth. There is also an opportunity to focus on the refined operation of users (that is, DTC, which is often referred to overseas). The demographic dividend does not mean that there is a market share, it belongs to the capable and branded enterprises.
In the small home appliance market in Southeast Asia, Shopee and Lazada are the two major e-commerce platforms, which dominate and have grown steadily, but the growth rate has slowed down in recent years. For example, the year-on-year growth rate of Shopee's order volume decreased from 123.2% in 2021 to 19.2% in the third quarter of 2022, and Lazada's order volume growth also turned from 10% to decline.
In the small home appliance market in Southeast Asia, brands such as Dreame, Bosch and Black + Decker have different competitive strategies and different market share distributions.
Since entering the Southeast Asian market at the end of 2021, Dreame has rapidly expanded with its multi-category product line and online and offline integration strategy. It has a certain share of the small home appliance market in the Philippines, Singapore, Thailand and Vietnam. Its main strategy is to use social media marketing such as TikTok, combined with offline events and influencer live broadcasts to attract consumers. For example, in the Vietnamese market, Dreame invited TikTok's top Vietnamese influencers to participate in offline press conferences and live broadcasts online, achieving the highest GMV of more than $100,000 in a single day. In addition, local brand spokespersons were signed to increase brand exposure.
In contrast, traditional home appliance brands such as Bosch and Black + Decker are highly competitive in Indonesia and Malaysia. They rely on traditional offline channels such as chain stores and large supermarkets, and are gradually expanding online platforms such as Shopee and Lazada. But with the rise of emerging brands such as Dreame, they face stiffer competition.
