HOME APPLIANCES

Home Appliances
 What is Home Appliances ?

Home appliance refers to a piece of equipment, usually operated

electrically, used especially in the home or for the performance of domestic
chores such as cooking, cleaning, or food preservation.
It is also known as domestic appliances, majorly involves white goods
such as refrigerators, air conditioners, dishwashers, clothes dryers, drying
cabinets, freezers, kitchen stoves, water heaters, washing machines.
They are available in various distribution channels such as Supermarket &
Hypermarket, Specialty Store, E-Commerce, and Others.
 Market Overview

The home appliance segment is one of the fastest-growing industries in the Indian market.
 Home appliances in India have been increasing at a steady pace, driven by both large appliances and small appliances; in 2018, large appliances have
slightly higher growth than small appliances.
Most categories within home appliances saw both retail volume and current value growth in 2018.
The sector has a vast untapped market for appliances, like air conditioners (AC), washing machines, and fridges.
 The air conditioner has a penetration of 4% in India as compared to the global average of 30%.
 The emerging economy and changing lifestyles of Indian consumers have been leading to growth in the number of working people, nuclear families,
single-person households, and the migrating of the job population.
 Therefore, these developing households have an increasing need for accessibility and are looking for products that offer convenience and considerably
reduce the time and effort spent on everyday chores.
The main growth drivers for this industry are increased affordability, focus on energy-efficient products, increasing digital penetration, and the rise in
aspiration.
 India has seen significant changes in its policies, especially those related to the regulatory and business environment.
The appliances sector and the upcoming national policy for electronics (NPE) may bring about significant policy changes for the industry.
 The burgeoning middle class in urban areas and aspirational demand from rural India, coupled with government reforms in the form of GST, are making
the appliances industry look positively toward the next phase of exponential growth.
This growth in India's consumer market demand is driven primarily by rising disposable incomes in Indian households and easy access to credit, which
induces growing purchasing power.
Increasing the electrification of rural areas, along with the rising influence of social mass media and the popularity of online sales, is also likely to increase
the demand. Two-thirds of the total revenue is generated from the urban inhabitants, and the rest is made from the rural inhabitants.
 Market Snapshot

 Study period-2016-2026
 Base year-2020
 CAGR- >5%
 Companies-Whirlpool
Electrolux,Haier,Bosch, LG
 Indian Scenario

 Revenue in the Household Appliances segment is projected to reach ₹98,891m in 2021.

 Revenue is expected to show an annual growth rate (CAGR 2021-2025) of 8.62%,
resulting in a projected market volume of ₹137,668m by 2025.
 In the Household Appliances segment, the number of users is expected to amount to
415.8m users by 2025.
 User penetration will be 14.2% in 2021 and is expected to hit 28.8% by 2025.
 The average revenue per user (ARPU) is expected to amount to ₹498.24.
 In the Household Appliances segment, 3% of total market revenue will be generated
through online sales by 2023.
 Global Market Overview

The global household appliances market was valued at $501,532 million in 2017 and is
projected to reach $763,451 million by 2025, growing at a CAGR of 5.4% from 2018 to 2025.
Technological advancements in this segment and the rise in consumer disposable income
are expected to drive the home appliances market over the predicted years.
Also, high living standards, improved quality of life, and easy to use of home appliances
expect a boost to the market in the coming years.
Additionally, various features of home appliances such as smart functionality, elegant
design, sustainability, diversity, and effectiveness are predicted to fuel the market during the
forecasted years.
Asia Pacific was the largest region in the global household appliances market, accounting
for 49% of the market in 2020.Western Europe was the second largest region accounting for
19% of the global household appliances market.
Africa was the smallest region in the global household appliances market.
 Market Segmentation
BY PRODUCT BY DISTRIBUTION CHANNEL
Major Appliances- Multi-branded Stores
Refrigerators Exclusive stores
Freezers Online
Dishwashing Machines Other Distribution Channels
Washing Machines
Cookers and Ovens
Small Appliances-
Vacuum cleaners
Small Kitchen Appliances ( Food processors, Air
Fryers, Mixer Grinders) Hair Clippers
Irons
Toasters
Grills and Roasters
Hair Dryers
Water Purifiers
 Market Segmentation (Global)

By Region By product By Distribution Channel

Asia-Pacific (China, Southeast Asia, Smart kitchen appliances Specialty retailers
India, Japan, Korea, Western Asia) Smart laundry appliances Department stores
Europe (Germany, UK, France, Italy, Mass retailers, hypermarkets, and
Russia, Spain, Netherlands, Turkey, supermarkets
Switzerland) North America (United Discount stores
States, Canada, Mexico)Middle East Online
& Africa (GCC, North Africa, South
Africa) South America (Brazil,
Argentina, Columbia, Chile, Peru)
Refrigerator
 Market segmentation of Refrigerator

By Model:-
Mini Freezer ,Top freezer, Bottom freezer, side by side, French door.
By Retail Format:-
Online-E-commerce, Brands
Offline-Specialty stores
By capacity
<200L, 200-499L, 500-700L, >700L
By Technology:-
Smart(frost free), conventional direct (Direct cool)
By End user:-
Residential, commercials (Restraurants and cafes, hotels, hospitals & pharmacies)
 Dishwasher

 India dishwasher market to cross USD90 million by FY2026 and is expected to grow at a CAGR of over 12% by value during the forecast period. 

 Growth of dishwasher’s market in India can be attributed to rising numbers of nuclear families, disposable income, due to COVID-19 as most of
the house helps stayed away from work due to the lockdown.
 Additionally, growth in organized retail end e-commerce industry coupled with rising consumer inclination towards sanitation devices are further
anticipated to aid the growth of the India dishwasher market during the forecast period.
 The dishwasher market in India is segmented on the basis of by type, by distribution channel and by region. In terms of type, the market is
segmented into built-in and free standing. The free standing is the dominating segment within the country and therefore the trend is probably going to
continue within the forthcoming years.
 In terms of the distribution channel, the market is categorized into multi-branded stores/distributors sales, exclusive stores,
supermarkets/hypermarkets and online channels. Among which, multi-branded stores/distributor sales have accounted the majority of market share
in FY2020 in India dishwasher market, followed by exclusive stores. Companies are striving to extend their focus to create products available in
exclusive stores, multi-branded stores, and online channel across the country.
 Market Segmentation of Dishwasher

By Product type:-
Free- standing dishwasher, Built-in dishwasher
By Distribution channel:-
Hypermarket/supermarket, Multibranded stores/Distributor sales,
stores
By Geography:-
North, East, West, South
By Company:-
IFB industries,BSH household appliances, Samsung India Electronics
Pvt Ltd, LG Electronics Pvt Ltd, AB Electrolux etc.
Dishwasher
 Washing Machine

 The washing machines segment has been somewhat derailed. Poised at an annual increase of 10–11 percent since
the last few years, at best FY21 will see the market at 7 million machines, very similar to FY20 and FY19.

 COVID-19 brought the relevance of large appliances to the forefront for most households. Dishwashers, vacuum
cleaners, food processors, coffee machines, and personal hygiene products suddenly became high on the shopping
list. The under-penetrated washing machines segment was no different. With social distancing becoming the norm, and
the part-time maid a forbidden entity, washing machine was the savior .
 Hygiene is a huge area of concern for consumers and washing clothes at a high temperature is a proven way of
killing germs. Fully automatic washing machines gained share. Makers responded by extending high-
temperature wash options, earlier only possible in high-end fully automatic washing machines, also in semi-
automatic models.
 Washing Machine Market

 The Indian washing machines market in 2019-20 is estimated at 7 million units, valued at Rs. 10,400 crore. With the COVID-19 pandemic refusing to
relent, although the 10 percent anticipated growth is not expected to materialize, this utility product is expected not to show degrowth in 2020-21. The
release of pent-up demand in June, continuing through July is somewhat getting it back on track.
 The semi-automatic segment continues to hold sway with a 57-percent market share, by volume. In the fully automatic category, it is the top-loading
models that have a 66-percent share by volume and a 56-percent share by value, largely because of the price differential with their front-loading
counterpart
 While LG continues to dominate the segment, it slipped in 2019, as against 2018, and lost market share to Haier, Whirlpool, and Bosch. Godrej and
Samsung gained share very slightly. IFB continues to have a 6 percent share with presence in the fully automatic machines only. Videocon has
disappeared from the market altogether.
 Other brands as Vestar, Wybor, Truvison, Daenyx, Panasonic, Lloyd, Onida, Midea, T-Series, Toshiba, TCL, Voltas Beko, Siemens, and Gaggenau
have their niche clientele. With the Tier-II and Tier-III cities emerging as major buyers, the semi-automatic washing machines have attracted the
attention of brands as Xiaomi, Thomson, and Sansui (in partnership with Jaina Group) that have forayed in this segment. 247around continues to find
success with its servicing model, and has been in an expansion mode for the last couple of years.
 While the GST is at an 18-percent slab, the less-than-10-kg category continues to attract a 20 percent customs duty. The last couple of years have
seen a shift toward 8-kg capacity machines, away from 6–7-kg machines that were more popular earlier.
 Smart washing machines with their ability to operate remotely by smartphones, that can also receive notifications are yet to catch the eye of the
Indian consumer. The Indian housewife is opting to spend her money on either transitioning from semi-automatic to fully automatic machines or
buying a larger-capacity model, with the latest upgrades. Numerous advancements as auto-optimal wash, eco-check, automatic detergent
dispensing, power-wash system, steam-care function, self-cleaning elements, spin-shower program, tri-roto scrub pulsator, in-built cartridge lint filter,
and so many others are keeping her enamored.
Market Segmentation
 Vacuum Cleaner

 In the past few years, the Indian vacuum cleaner market witnessed substantial growth on account of the increasing income of Indians and the
demand for a better lifestyle.
 The outbreak of COVID-19 has highlighted the importance of vacuum cleaners in India as the unavailability of domestic help made people switch to
modern ways of cleaning and this would act in favor of the vacuum cleaner industry in the coming years.
 Additionally, government initiatives such as the “100% FDI”, which allows 51% of foreign direct investment in multi-brand retail and 100% foreign
direct investment in single-brand retail which in turn would attract a lot of foreign players in the years to come.
 the India Vacuum Cleaner Market size is projected to grow at a CAGR of 7.9% during 2020-2026.
 Based on types, deep cleaner or carpet cleaner dominated the Indian vacuum cleaner market share in 2019 owing to its special advantage of
powerful suction, large storage, and capabilities to clean wet and dry surfaces. Also, its high cleaning capacity makes it useful for both residential and
commercial purposes.
Vacuum Cleaner
 Water purifier

 Water purifiers are no longer considered to be consumer durables limited to affluent households. Increasing
awareness coupled with lower prices have increased the penetration of water purifiers across lower income
groups and rural households in the country. Reverse osmosis (RO) technology embedded in modern water
purifiers is the most popular category.
 Water purifiers range from simple water filters to advanced purifiers using membrane technology for water
filtration followed by disinfection with ultraviolet (UV) lamp filters. Water purification has evolved, from using clay
to filter out the sediments, to advanced water purification technologies that use electricity and the internet.
 India water purifier Market By Technology, By Sales Channel, By Region, Competition Forecast and
Opportunities, 2011 – 2021”, the water purifiers market in India is projected to grow at a CAGR of over 21%
during 2016 - 2021.
Water Purifier Market
Water Purifier
 Key Market Trends

 Offline Distribution Channel to Observe High Growth in Indian Home Appliance Market:-
 The online channel registered significant growth in 2018 across the categories in-home appliance sector and is
currently being viewed as one of the important channels to operate in the market. An increase in the sales for
refrigerators, washing machines, and air conditioners is being witnessed through this channel. This is unique
and new, as consumers may not buy without the touch-and-feel experience of the product in the store. Apart
from changing lifestyles and working styles, urbanization has led to growth in this sector, which, in turn, has led
to a change in consumers' buying behavior. In particular, the decision-making process before buying something
has been significantly affected. The rise in urbanization in India has also led to its people having more additional
disposable income than before
 Key Market Trends

 Urban Areas Account for Majority of Sales in Market:-

 The urban area accounted for a major share in total revenue in the home appliance market in India. There has been an
increase in spending capacities of urban Indians who have been opting for products and services that act as a style statement
or status symbol. The mounting need to reverberate with the products has accelerated the demand for personalized appliances
that compliment the overall theme of the house and suit the utilitarian requirements of the household.

 Basic household appliances, like washing machines, refrigerators, and mixer grinders, that are found in every Indian household
have also been witnessing a high demand for the latest and advanced features. Interestingly, the demand for built-in appliances
has been gaining thrust due to the perfect amalgamation of cutting-edge design technology and high functionality.

 It is expected that an increased supply of electricity, coupled with rising disposable income, may increase the demand for other
basic appliances, like mixer grinders, air coolers, and televisions. It may also see an increase in demand for direct cool
refrigerators and eventually room air conditioners.
 Competitive Landscape

 The Indian home appliance market is highly competitive and moderately consolidated, as top players have a
high market share in the industry of big and small appliances.
 Consumers have been becoming more technical understanding, and the manufacturers should be able ready to
offer the best technological advancements to the users, thereby, increasing the investment into R&D. According
to a source, in 2018, over 34% of the Indian population lived in an urban area, which is expected to rise in the
coming years. This creates an enormous opportunity for the smart home market players.
 Major Players:-
 Electrolux AB
 Haier Electronics group Co Ltd
 LG Electronics
 Robert Bosch GmbH
 Whirlpool Corporation
 Whirlpool India

Whirlpool India Limited was incepted in India in the late 1980s as a part of its global expansion
strategy.
It began operations in the Indian market under a JV with TVS group and established the first Whirlpool
manufacturing facility in Pondicherry for washing machine category.
 In 1995, Whirlpool acquired Kelvinator India Limited and made an entry into the refrigerator
market.
The same year, the company also saw the acquisition of major shares in TVS JV and later in 1996, Kelvinator and TVS
acquisitions were merged to create, Whirlpool India Limited.
This has vividly expanded the company's portfolio in the Indian subcontinent to the washing machines, refrigerator,
microwave ovens and air conditioners.
 Whirlpool India Limited is headquartered in Gurugram and is presently one of the leading manufacturers and
marketers of major home appliances in the country.
The company owns three state-of-the-art manufacturing facilities at Faridabad, Pondicherry, and Pune.
Each of the manufacturing set-up features an infrastructure which portrays the company's commitment to
providing its consumer with forward looking solutions.
 Whirlpool Products

Whirlpool India holds the following product portfolio:

▪ Refrigerators – Four door, side by side, French door, bottom mount,
three door, double door, single door, and mini refrigerators.
▪ Laundry – Front load, top load, semi automatic, and washer dryer combo
▪ Air Conditioning – Split and window
▪ Purification – Water purifiers and air purifiers
▪ Commercial Appliances and Accessories
 Whirlpool

• The company has a vase service network across India in 3500+ cities and
• towns.
• Whirlpool Corporation, the Ultimate Holding Company is the world's
• leading manufacturer of home appliances, with nearly USD 21 billion in
• annual sales, 92,000 employees, and 65 manufacturing and technology
• research centers in 2018. The company markets Whirlpool, KitchenAid,
• Maytag, Consul, Brastemp, Amana, Bauknecht, JennAir, Indesit, and other
• major brand names in nearly every country throughout the world
 Strategies

The company has stood out as the Master of Elegance by presenting the perfect
blend of extraordinary performance and contemporary style.
 Powered by 6TH SENSE Technology, it intuitively adapts temperature and
preserves freshness. Designed with spacious boutique compartments and state of-the-art
features, it gracefully complements a luxurious lifestyle. There is this
6TH SENSE TurboQuiet Technology of the intelligent hoods ensures silent
operations. And all this to provide an immaculate cooking experience.
The year 2019 had witnessed the company’s washing machines Bloomwash Pro
and AceXL emerging victorious in a highly competitive field, which had included
more than 6,400 entries from 50 countries.
Achieving this new milestone is a validation of its cutting-edge technology and bold aesthetics,
across all its products. It, thus, continues to conquer the consumers hearts and win awards.
 Channels of Distribution

 Based on industry reports, the company’s distribution network for refrigerators and WMs are at 17,000 (2-
year CAGR of ~13%) and 12,000 (2-year CAGR of ~32%) outlets, approximately 35.9% and 30.5% of the total
distribution network, respectively.
Despite the company’s efforts, its distribution network in both core categories is not as extensive as industry
leaders, like LG and Samsung. However, it is anticipated that the lower distribution network offers strong
growth potential for the company, which is likely to lead to sustainable growth in medium-to-long term.
 Whirlpool's counter share in the existing distribution network for refrigerators and washing machines is
materially lower than market leaders, such as LG and Samsung. However, the company's counter share has
improved during FY17 over FY15 and FY16 levels, mainly led by:
▪ Product innovation
▪ Technology upgrades and
▪ Rising awareness among dealers and distributors ,due to company’s interactive sessions with them.
 It strives to improve the counter share in the existing channel and looks forward to increase the number of
its outlets.
Whirlpool acquired 49% shareholding of Elica PB India Private Limited, consisting of 2,368,997 equity shares of INR 10 each. Elica PB India
conducts the business of manufacturing and selling kitchen equipment, such as kitchen hoods, hobs, built-in ovens, refrigerators, built-in
microwave ovens, dishwashers, et
 Swot Analysis of Whirlpool

Strength:-
 Employee strength – Whirlpool has a huge employee strength which is advantageous to the company. Whirlpool
has around 1 lakh employees across the world.
 One of the top Major appliances manufacturer – Whirlpool is Present in most of the large appliances as well as
home appliances. It is Ranked 199th by Forbes in the top global companies across all sectors.
 Strongest in Washing Machines – Whirlpool has a clear market leadership in Washing machines where it is
clearly the leader above all other brands.
 Manufacturing Advantage – Whirlpool has manufacturing in 61 countries where it has manufacturing hubs. The
factories are known to have optimized operations giving excellent output. As a result, Whirlpool is easily able to
match the demand in the market for its products.
 Covers the whole world – Whirlpool is present in the US, UK, Europe, Middle East, Africa, Asia and at least
above 100 countries. This fantastic presence of the company has helped the brand in the high revenue.
 Strongly involved in charity work – Whirlpool has many charity initiatives and believes in CSR and giving back to
the society.
 Swot Analysis of Whirlpool

Weakness: -
 Stagnancy in total revenue – A major weakness Whirlpool faces is that there is stagnancy in their total revenue
generated. Since the last several years Whirlpool has risen and dropped but it has stayed on or around $21
billion revenue. This shows that the company is not growing and is losing market share to other competitors.
 Dependence on US market – The company is majorly dependent on the US markets and some markets in
Asia. As a result, it loses to other brands in other countries and loses out on potential revenue.
 More of a Market Follower – Whirlpool is known as a market follower and not an innovator because most its
products are extensions of existing product line and not something new which it brings to the world.
 ATL presence is dropping – Whirlpool does not have a good ATL presence. Its BTL presence is average as
well. Because it is a star in the BCG matrix, its spends on ATL and BTL needs to be higher.
 Differentiation is lacking – The consumer electronics industry is filled with brands which are copying each
others products and there is not much differentiation that can be done between brands. Such differentiation is
lacking for Whirlpool as well.
 High revenue but low margin – The revenue is high but to maintain the same level of revenue, the expenses
are getting higher too. As a result, the company has high revenue but the net margin is dropping.
 Swot Analysis of Whirlpool

Opportunities:-
 Entering Small Appliances – Whirlpool is known majorly as a large appliance and home appliances product. But there
are many small appliances which are not present in the product portfolio of Whirlpool. This is something which LG has
done and which Whirlpool can do to expand its targeted customer base and to offer more products from its own brand.
 E-commerce sales – Whirlpool can capitalize the rise in E-commerce sales across the globe and especially in
developing nations.
 Emerging markets – Whirlpool can concentrate on developing and emerging markets especially in Africa and parts of
Asia. These emerging markets can help Whirlpool build its brand in a nascent market and thereby give a boost to the
revenue of the brand.
 Increasing depth of Portfolio – Increase product portfolio depth is another opportunity which Whirlpool can capitalize
on. It can sell more products to its already existing huge customer base.
 R & D – Whirlpool can spend more on its R & D to give even better products at competitive prices to the customer
thereby penetrating the market even more.
 Services – The consumer durables segment is one of the segments where service is always a major problem because
of the nature of the products. Thus, innovations in service delivery will help the brand in brand equity as well as in
becoming a trustworthy brand.
 Swot Analysis of Whirlpool

Threats:-
 Intense Competition – A major problem to Whirlpool is the intense competition in this industry. As a
result, other brands are taking away market share and Whirlpool’s revenue is touching stagnancy. The
competition is not going to drop in time. Thus Whirlpool needs to look at additional avenues to generate
revenue and to get profit.

 Dropping margins – The dropping margins are a major threat to Whirlpool as they challenge the brands
expansion and the brands existence directly.

 Mature markets – US and other Asia markets are mature markets where there are many brands present
and penetrated. As a result, having a footprint in these regions is getting more and more difficult.
 Swot Analysis of Home Appliances India

Strength: Presence of established distribution networks in both urban and

rural areas.

Weakness: Demand is seasonal and high during festive season.

Opportunity: In India, penetration level of white goods is lower as compared

to other developing countries, in addition with unexploited rural market.

Threat: Cheap imports from ASEAN at 0% or concessional import Duty &

imports from China. High import duties on raw material
 Trends to rule Indian Home Appliances in 2021

A) Boost in Domestic Manufacturing:-

Following the recent India-China standoff, the clarion call for ‘Aatmanirbhar
Bharat’ by Government, and Production-Linked Incentive (PLI) schemes,
domestic manufacturing for household appliance products is expected to
give a prolific boost in 2021. Many companies in the home appliances sector
have already started to ‘Manufacture in India’, limit and/ or eliminate imports
and produce new products based on localized needs, features or India-
specific innovations. Since the imported commodity price for consumer
electronics products is anticipated to increase in 2021, it will further propel
the trend of manufacturing domestically
 Trends to rule Indian Home Appliances in 2021

B) Home Utility & Wellness Products to Become the Rage:-

As the ongoing saga of work-from-home or remote work and online learning
trickles ahead to the next year and people continue to stay indoors for
longer hours, utilitarian products which complement the stay-at-home and
do-things-yourself lifestyle are booming in demand. For instance, household
appliances such as refrigerators, dishwashers, indoor air purifiers, washing
machines, and low-cost as well as premium electronic devices are expected
to be bought and sold in large volumes in the coming year. Also, given that
the pandemic has reaffirmed the importance of healthy living, a new and
innovative category of wellness products has come up as ‘need of the hour’
solution; these types of anti-COVID, anti-infection, or health-consciousness-
based home appliances will again be in high demand in 2021 .
 Trends to rule India Home Appliances in 2021

C) Digital-First Business Will Be Priority:-

The whole world turned to online and digital during COVID, and the
home appliances sector can obviously be no exception. 2021 will be
the year when both big and small-sized companies in this industry will
be compelled to focus whole-heartedly on digital-first business
strategies. Even traditional product-based home appliance players may
switch entirely from ‘brick-and-mortar stores and shops’ to e-tail or
digital commerce, or will at least try to go ‘phygital’ (physical+digital).
The companies will also be looking at using digital tools/ technologies
to engage and interact with consumers (especially tech-savvy millennial
customers), market their products, optimize operations, and so on.
 Trends to rule Indian Home Appliances in 2021

D) Purposeful Innovation for Future-Forward Advancement:-

In order to stay relevant and ahead-of-the-curve in these uncertain times
amid changing consumer behaviors, home appliance makers are currently
feeling the need to diversify product portfolios and innovate purposefully
and mindfully. In today’s age when consumers are increasingly looking for
personalized and easy-to-use products and/ or experiences, product or
technology-based innovation in home appliances must focus on 3Cs, i.e.
convenience, connectedness, and customizability to the end-users. By
integrating novel technologies such as IOT (Internet of Things) or AI
(Artificial Intelligence) into products/ solutions, future-forward companies
will be looking to aid the lifestyle and solve daily-life household problems/
challenges of their potential customers.
 Trends to rule Indian Home Appliances in 2021

E) Go Green and Clean Will Be In:-

The global virus outbreak has not only made us more health-conscious,
but also collectively raised our consciousness and commitment towards
the environment, and for providing cleaner and greener solutions for
planet Earth. For the Indian home appliance industry, the upcoming year
ushers a great opportunity to come up with more environment-friendly
products. Furthermore, a large number of companies building/
manufacturing the appliances are expected to re-look and transform their
production and distribution value chain (from sourcing, manufacturing to
packaging and so on) in a way so that maximum use of clean energy and
eco-friendly products or raw materials can be made, and the circular
economy concept can be embraced for good.
 Global Market Trend

A) Asia-Pacific is Dominating the Home Appliances Market:-

The market for home appliances in the Asia-Pacific region is largely dominated
by regional brands, including Haier, Midea, Gree, Hisense from China, Samsung,
and LG from Korea, Panasonic, Sharp, and Hitachi from Japan, and Videocon
from India. The smart appliances market in Asia-Pacific is expected to grow at a
rapid rate. Developed countries like Japan, Singapore, Hong Kong, and Indonesia
are expected to register an increase in the sales of smart appliances, mostly
owing to the rising energy and labor costs, the high purchasing power of
consumers, and greater awareness about smart cities and smart integrated
appliances. China has the highest demand for conventional air conditioners, by
volume, across the globe, owing to government policies that favor energy-saving
appliances, a growing property market, and hot weather.
 Global Market Trend

B) Growing E-commerce Sales of Home Appliances

The E-commerce segment is expected to witness rapid growth during
the forecast period owing to the high penetration of internet and
smartphone, along with technological advancements, change in
shopping behavior due to digitalization, availability of a wide range of
products, and wide range of discounts and offers on online shopping
sites. In addition, improvements in after-sales services have provided
an impetus to the home appliances market growth. Manufacturers are
working with several other companies to ensure timely delivery and
installation after the online sales of the product.
 Policies

Electronics industry is the world’s largest and fastest growing industry and is increasingly finding
applications in all sectors of the economy. The Government of India attaches high priority to
electronics hardware manufacturing and it is one of the important pillars of both “Make in India” and
“Digital India” programmes.
Implementation of the Schemes/ Programmes under the aegis of the National Policy on Electronics
2012 (NPE 2012) has successfully consolidated the foundations for a competitive Indian ESDM value
chain. It is now proposed to build on that foundation to propel the growth of ESDM industry in the
country. Besides the economic imperative, focus on electronics hardware manufacturing up to the
integrated circuit or chip level is required due to the growing security concerns. However, the sector
continues to face many challenges.
The National Policy on Electronics 2019 (NPE 2019), prepared after extensive stakeholder
consultation, envisages to position India as a global hub for ESDM with thrust on exports by
encouraging and driving capabilities in the country for developing core components, including
chipsets, and creating an enabling environment for the industry to compete globally.
 Innovation and campaign

A) Haier India-
 In today’s climatic conditions, different foods have different temperature requirements for storage, and even though the ideal temperatures
for different foods may vary by only a few degrees, the difference can make a huge impact on flavor, freshness, and texture. Keeping this
in mind, Haier presented a Magic Convertible feature in its BMR range that equips the consumer with 14 modes to execute precise
temperature control from +9⁰ C to -24⁰ C to store a wide variety of food items at a favorable temperature. The refrigerator not only retains
the freshness and nutrition of food for a longer duration but also helps in energy savings with its 3 and 4-star energy ratings.
 The new TVC is a reflection of how Haier strives towards a better and healthy lifestyle for its consumers through constant innovation in its
products. Led by 3 commercials, the TVCs showcase a scientist popping out of nowhere, trying to offer unsolicited advice to women as
they go about their day picking fresh groceries to stock in their refrigerators. As the scientist attempts to give knowledge about retaining the
freshness of these groceries, the commercials then showcase that the women are already two steps ahead, thanks to Haier’s Magic
Convertible innovation. Viewers see the woman in three different scenarios - buying fresh produce at the flea market, unloading groceries
from her car trunk, and carrying the vegetables home in the lift while being accosted by the scientist. Highlighting the features of the new
Haier Big Bottom Mounted Refrigerators, the TVCs stress the importance of temperature setting in a refrigerator. The films intend to
highlight Haier’s cutting-edge 14-in-1 Magic Convertible technology, and how the temperature setting problem is tackled efficiently with just a
turn of a knob.
 Innovation and campaign

LG:-
 LG Electronics India has launched its new TVC featuring LG DUALCOOL Air Conditioner, uniquely designed for their customers
when they feel depleted in extreme heat.
 The TVC captures how the youth is very conveniently operating the air conditioner using their smartphones. It also shows how
one can save on electricity bills by altering cooling capacity of air conditioner basis no of people in the room. TVC also features
the benefit 100% Ocean Black Fin that protects against all weather and environmental conditions. The TVC very well ends
highlighting all the salient features and a tag line All In One, One In All.
 Speaking of these campaigns, Vijay Babu, VP-Home Appliances, LG Electronics India, said, “Health & hygiene has become a
key parameter for consumers when purchasing Home Appliances. LG AC’s are equipped with UV Nano feature which removes
99.99% bacteria from wind generating Fan. Not just this, its LG ThinQ app allows user to control the AC anytime from
anywhere. Through this campaign we would like that consumers should make an informed choice & select an all in one AC. We
will be running all India TVC campaign across 50+ channels including high impact properties like IPL.”
 Technological Development

A Perfect Blackout Backup with Cooling Gel, Cooling Wall, and Insulated Capillary:-
 Power cuts and load shedding is commonplace in India, especially in distant towns and villages. Since refrigeration
generally works 24×7, it is a home appliance most susceptible to the erratic blackouts. Power cuts poise two
problems for the refrigerator.
 First is the spoilage of food in case if power cuts persist for a longer duration of time. Second is much more
hazardous—damage to the refrigerator due to voltage fluctuations.
 Modern refrigerator armed with technologies like cooling gel can assuage the impact of power cuts.
 Most of the modern refrigerators from reputed brands like Samsung, Whirlpool, Godrej etc. comes with a cooling
gel, which is released in the form of cool gas, which is then circulated inside the refrigerator to keep it cool for
several hours.
 StayCool is a cooling gel technology from Godrej. StayCool keeps the food well frozen for few hours without power,
and keep the freezer compartment cold even in the absence of electricity. This means even ice cream kept inside
the refrigerator won’t melt for few hours in case of blackouts.
 Samsung is the first manufacturer in India to come with a Cool Wall inside the refrigerator—an especially designed
wall which retains cooling even during power cuts for several hours. It beautifully compliments the Cool Pack—a
cooling gel technology, to keep the food items inside the refrigerator chilled for up to 12 hours during the power cuts.
 Technological Development

Battling the Hard Problem of Hard Water

 The hard water problem is common in various places across India. Noida is one of the big city facing this
problem. Besides the ill health impact that hard water causes, it is also hazardous to the washer. It becomes
difficult to dissolve the detergent in hard water if used in the washer. Also, white layers of residues accumulate
around the drum and the supply pipe, ultimately choking them. To tackle this challenge arising out of the hard
water, manufacturers like IFB, Whirlpool, Maytag have come up with hard water treatment technology in their
newer models.
 The latest generation of IFB washers is armed with Aqua Energie technology to convert hard water to soft.
Models equipped with this technology have a built-in Aqua filter which breaks down the bicarbonates in hard
water into fine crystals. Due to very small size of this generated crystals, they are easily removed alongside the
flow of water. Thus, this way it mitigates the risk of scale accumulating on critical machine parts and
subsequently getting choked.
 To tackle challenges arising out of hard water Whirlpool has Hard Water option for its new semi-automatic
machine series like Ace. This unique Hard Water wash option helps in achieving better dirt cleaning even when
the supplied water is hard.
 Similarly, Maytag’s new series of front loaders have the ability to adjust its performance to the hardness of water.
This improves cleaning performance for those with hard water problems.
 Investment

 BSH, Europe’s largest home appliances maker, hopes to launch a range of new products in the Indian market, including
refrigerators, chimneys and cooktops. At the same time, it is shifting production of top loading washing machines from China to
India.
 We are launching around 25-30 models of refrigerators from our Chennai factory in October. We are also launching self-clean
and auto-clean chimneys from August, that is also close to 35 models and then we are also launching four models of cooktops
in October or November this year. Also, we have shifted production from China of top load fully automatic washing machine.
That also will be coming in this year,” Neeraj Bahl, MD and CEO of BSH Household Appliances, said.
 The company is investing €100 million in India to scale up IoT (internet of things)-based product solutions and setting up factory
for refrigerators.
 BSH already has a plant in Chennai, where it has invested Rs 300 crore. BSH intends to expand the capacity there as it plans
to start manufacturing dishwashers, a product category that has seen demand surge as a more than two-months of lockdown
last year amid the COVID-19 pandemic, forced people to stay at home. Bahl also said that it will be exhausting the 350,000
units per annum capacity for front-load washing machines there and has already got approval to enhance the line so that the
production capacity will go up to 500,000 units.
 In due course, BSH also plans to export some of the products from India to neighbouring SAARC countries and possibly Africa
too.
 Manufacturing Companies of Home Appliances

1) LG Electronics-New Delhi
2) Godrej and Boyce –Mumbai
3) Whirlpool –Gurgaon,Haryana
4) Haier Appliances – New Delhi
5) IFB Industries – Kolkata, West Bengal
6) BSH Household Appliances Manufacturing Private Limited - Mumbai
7) Electrolux India – Gurgaon, Haryana
8) Mantra Industries Limited – Mumbai
9) VOLTBEK Home Appliances – Mumbai
10) Vijay Home Appliances – Hyderabad
11) GLEN Appliances – Faridabad
12) ACME Refrigerator Pvt. Ltd – Goa
13) ATO cleanroom equipment Pvt Ltd – Noida
14) Silent Cooling System – Gujarat
15) Bhagatram Rawaldas cold storage Pvt Ltd – Mathura , Uttarpradesh
 Covid 19 change consumption of home appliance in India

 A lot has changed in the past year since the Covid-19 pandemic forced people to stay inside their homes. This not only includes people all across the
globe studying and working from home but it also includes how they consume technology.
 In the past year, people all around the globe, including the ones in India, turned to improving their fitness levels and their culinary skills in the extra
time that they had at their disposal. Millions of fitness and food videos shared on various social media platforms are a testament to this trend. This
shift was also reflected in the home appliance that they purchased during the past year.
 Flipkart’s Vice President of large appliances told us as more and more people settled in their routines they looked for automating their home
appliances in a bid to save time. “From microwaves having 73 auto cook menus to curd maker refrigerators and quick wash washing machines to
dishwashers, customers across the country, including customers from tier-3 cities and beyond, increasingly adopted home appliances through e-
commerce. This led to almost doubling the demand for home appliances in the last year,” he said.
 He also said that since the pandemic forced people to stay at home, there has been a growing demand for niche kitchen appliances such as electric
tandoor, hand blender, waffle makers, pizza makers, popcorn makers and cotton candy makers. The executive said that this segment witnessed a
growth by over 200% in the first few months of 2021 as against the same period last year.
 He also said that there has been significant growth in cooking appliances like microwave, OTG, induction cooktop, productivity appliances like juicer
mixer grinder, hand blender, dishwashers and hygiene products like vacuum cleaners, and water purifiers.
 Number of customers are opting for COVID ACs with air purification functionalities and multi-functional refrigerators such as convertible refrigerators
and curd makers. According to a survey done on our platform, in-built air purifiers were one of the top features preferred by customers. In addition to
this, we have seen an almost 20% increase in the adoption of No Cost EMI since the pandemic.
 Higher percentage of customers opting for replacement options while purchasing a refrigerator since the launch of product replacement. In addition to
this, customers are also opting for energy-efficient ACs refrigerators to save on electricity bills and reduce the cost of operations. While the former
saw a jump of up to 40% in the demand for 5-star high capacity, high energy-efficient AC's, refrigerators adoption too reflected a similar trend.
 Covid 19 change consumption of home appliance in India

Tier 2 and 3 Cities:-

 Interestingly, while there has been a significant uptick in the demand for home appliances
in metropolitan cities.
 For products like microwaves, juicer mixer grinder, hand blender, kettles, toaster, vacuum
cleaners, OTG, water purifiers, etc, we have seen an uptake from tier-II and beyond cities
for these products with about 2X increase in demand coming from these markets.
 What future looks like?

From COVID ACs to UV filter wardrobes, health and hygiene will continue
to be an important factor as customers look for solutions that eliminate
viruses, disinfectant properties while buying products. With work from
home becoming the new normal, home automation will be key for people
which in turn will continue to boost the demand for products in this
segment. Affordability will also play a key factor while buying products.
Furthermore, with an increasing focus on health and fitness, the wearables
market will branch out to cities beyond metros and tier-I cities.