The United Kingdom's major home appliances market is highly saturated and the major appliances such as washing machines, refrigerators market have been growing at a moderate pace. The factors contributing to the purchase are mainly renovation of households or replacement purchases.
The market had grown in response to strong residential construction activity and recovering consumer confidence in the appliances industry. However, the weakening of Pound and low manufacturing due to the lockdown has constrained the market in the Q1 of 2020. The constrained housing activity due to the lockdown and uncertainty over the European Union referendum can restrain the growth of the market to some extend.
E-commerce has become the trend for purchasing home appliances in the market including major home appliances. The trend is witnessed to see a rise in the future owing to low-cost benefits and discounts available which is making buying easy for low to the middle class as well as for people with lower budget strings. Major home appliances that are seeing the innovation in the market are connected in line with IoT concepts. Large built-in cooking appliances such as ranges and ovens, built in refrierators are also in demand due to rise of single households and space conservation issue.
Key Market Trends
Increase in Consumer Spending on Major Home Appliances
Consumer spending on home appliances in the United Kingdom has increased substantially over the years. In 2019 the consumer spending for the year was 8,762 GBP million and increased to 12.11% y-oy-y. It is observed that the consumers on average spend 3.7 GBP on household appliances.
On the other hand factors such as lowering the bank rate (from 0.75% in early March to 0.10% in Mid march) by the Bank of England in the month of March are further expected to increase the demand for major appliances in the nation as it has lowered the borrowing costs for the people in the short term.
Increasing Household with Washing Machines in the United Kingdom
The washing machines sales in the United Kingdom is mainly driven by new innovations in the market and buoyant housing market and growth in housing number. The diffusion rate of washing machines in the United Kingdom has been between 97-98% in the past few years. Almost all of the households in the United Kingdom have appliances operating on electricity.
The country saw a rise in imports of the washing machine which is nearly around 4 million every year. According to the study, the washing machines sales in the United Kingdom are expected to drive by replacement by the users and first time washing machine buyers are also expected to increase in the market. However, tumble dryers have low penetration when compared to washing machines which can offer a great opportunity for the new brands and manufacturers.
The United Kingdom's large appliance market is moderately consolidated with outside manufacturers leading the market in terms of product preference and innovation. R &D and disruptive innovation are the major adopted strategies by companies to bring new technologies and products in the market. In the refrigeration appliances, manufacturers are bringing in appliances with a higher capacity to meet the rising demand of people. Major Players include Beko (Arcelik), Whirlpool UK Appliances Ltd, and Dixons Carphone plc. Curry is one of the major market leaders in the United Kingdom Retail segment.
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1.2 Study Assumptions
1.3 Scope of the Study
4.2 Market Dynamics
4.3 Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.5 Impact of Covid- 19 on the Market
4.6 Government Regulations and Initiatives
4.7 Technology Innovations in the Industry
4.8 Insights on Major Built-in Appliances
5.1.2 Washing Machine
5.2 By Distribution Channels
5.2.1 Supermarkets & Hypermarkets
5.2.2 Specialty Stores
6.2 Company Profiles
6.2.1 AGA Rangemaster Ltd
6.2.2 Glen Dimplex Group
6.2.3 Whirlpool UK Appliances Ltd
6.2.4 AB Electrolux
6.2.7 Russell Hobbs
6.2.10 Amica Group
6.2.11 Gorenje Group
A selection of companies mentioned in this report includes:
- AGA Rangemaster Ltd
- Glen Dimplex Group
- Whirlpool UK Appliances Ltd
- AB Electrolux
- Russell Hobbs
- Amica Group
- Gorenje Group