Household Appliances (White Goods) - Market Report

Released on = April 16, 2007, 1:43 am

Press Release Author = Bharat Book Bureau

Industry =

Press Release Summary = This report on household appliances covers the so-called
white goods of home laundry and dishwashers, cooking appliances and cooling
equipment. The total market value for household appliances (white goods) reached
Ł2.76bn in 2003, only a 1.7% increase from 2002.

Press Release Body = Household Appliances (White Goods) - Market Report

This report on household appliances covers the so-called white goods of home laundry
and dishwashers, cooking appliances and cooling equipment. The total market value
for household appliances (white goods) reached Ł2.76bn in 2003, only a 1.7% increase
from 2002. The UK market for such goods is one of maturity where only the categories
of dishwashers and tumble driers have much potential to increase volume sales. The
main opportunity to increase the value of the white goods market is through
technological innovation.

The largest sector by value is home laundry appliances and dishwashers (37%) of the
total market.

The state of the economy and of the housing market are particularly important to the
demand for white goods, since purchases may often be deferred, consumers can opt for
cheaper items than they may have wanted and it is a move to a new house that
frequently triggers the purchase of household goods, whether for the first time or
as a replacement.

If value growth is difficult to achieve, so is volume growth. However, one of the
key global areas for growth is Central and Eastern Europe, a large region with a
population of some 400 million people and where penetration levels of household
appliances are still low. The UK has a substantial, and rising, trade deficit in
electrical household goods, the only product category where exports exceeded imports
in 2002 being that of clothes drying machines. This is thanks, in no small part, to
the high level of exports from Crosslee PLC, Europe\'s largest tumble dryer
manufacturer.

The white goods market of 2003 is dominated by a small number of multinational
manufacturers with well-known brands. Consolidation among them continues, with the
most recent shake-up being the UK operations of General Domestic Appliances Ltd and
Merloni Domestic Appliances Ltd, which have come together as Merloni
Elettrodomestici UK Ltd, part of the Italian Merloni Group. Jobs have already been
lost at the company\'s Hotpoint factory in Denbighshire. The retail side of the
industry, meanwhile, saw the UK\'s third-largest, and biggest independent, electrical
retailer placed into receivership in the summer of 2003.

Moreover, the outlook for retailers is likely to get even bleaker as the Competition
Commission is expected to introduce new rules on the marketing of extended
warranties, a lucrative market for retailers but arguably an unnecessary expense
from the consumers\' point of view.

The total white goods market is expected to enjoy a modest growth in value of around
1.7% in 2004, increasing by 6.5% between 2003 and 2008.
Key Note Market Reports
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