Southeast Asia's Home Appliance Market Has Huge Potential

According to the World Bank, the population of the six Southeast Asian countries will be 606 million in 2023, accounting for 7.55% of the world's total population, and the GDP of the six Southeast Asian countries will reach 3.65 trillion US dollars in 2023, accounting for 3.47% of the world's total GDP. We compare the total amount of household appliances in China and Southeast Asia, the six countries in Southeast Asia account for 43% of the Chinese population, from the total sales of household appliances, the six countries in Southeast Asia white electricity + black electricity occupy 21% of China, affected by product structure and other factors, the price of household appliances is lower than China, from the total sales of household appliances, the six countries in Southeast Asia white electricity + black electricity occupy 16% of China.

In terms of per capita GDP and urbanization rate, Singapore's development level is higher than China's, Malaysia's is basically the same as China's, and Indonesia's Thailand, the Philippines and Viet Nam's development level is equivalent to China's development level from 2005 to 2015. According to the data of the National Bureau of Statistics, during the period from 2005 to 2015, China stimulated the demand for terminal household appliances through policies such as home appliances going to the countryside and trade-in, and the compound growth rate of home appliance retail in ten years was 18%, and in the long run, the compound growth rate of home appliance retail in 2005-2023 was 10%, and after the home appliance policy gradually retreated, the industry entered a new stage of gradual upgrading of product structure. According to industry-related data, the GAGR of the home appliance industry in the six Southeast Asian countries from 2018 to 2023 is 5%, and the penetration rate is comparable to that of us in 2010.

(1) Development status: In terms of categories, the overall penetration of black electricity in the six Southeast Asian countries is higher than that of white electricity, and the popularity of air conditioning in white electricity is low, but the popularity of electric fans is high; From the perspective of the competitive landscape, Korea brands occupy the mainstream position in the Southeast Asian market, Japan brands have the advantage in the field of air conditioning, and as Chinese companies gradually complete the acquisition of overseas brands (such as Toshiba, etc.) and establish relevant factories in Southeast Asia, Chinese brands in Indonesia, Thailand and Viet Nam have occupied a certain market position. Benefiting from the increased popularity of color TVs in sponsorship of global sports events and the global status of China's air conditioning industry, Chinese brands of color TVs and air conditioners are more accepted in Southeast Asia and enjoy a higher market share.

(2) Pattern changes: Compared with 2023, the share of Chinese brands in Southeast Asian countries has increased significantly, and in contrast to the Korea brands that are in the limelight, Japanese brands have begun to gradually lose ground in the Southeast Asian market, and their share has been declining in the past five years, only in the field of air conditioning still maintains a relatively leading market position.

The layout of Chinese enterprises in Southeast Asia: brand cultivation, manufacturing first.