Small Domestic Electrical Appliances Market Report

Released on = April 16, 2007, 4:55 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = This Market Report on small domestic electrical appliances
covers the market for small kitchen appliances, non-kitchen appliances (irons and
hand-held vacuum cleaners) and personal-care appliances.

Press Release Body =
Small Domestic Electrical Appliances Market Report

Executive Summary

This Market Report on small domestic electrical appliances covers the market for
small kitchen appliances, non-kitchen appliances (irons and hand-held vacuum
cleaners) and personal-care appliances. In 2004, the total UK small domestic
electrical appliances market was worth 872.9m at retail selling prices (rsp), a
rise of 4% on 2003.

The UK market for small domestic electrical appliances is already one of maturity,
with a high proportion of purchases being for replacement purposes. At the same
time, the difference between low-end commodity products and the high end of the
market is growing, as some consumers seek sophisticated, energy-efficient products,
while others make a choice based solely on price. One of the largest challenges
facing the industry is the issue of disposal, and it seems inevitable that end
prices to the consumer will rise when legislation that makes producers responsible
for taking back and recycling electrical and electronic equipment comes into effect
in January 2006.

A growing Eastern European market, competition from Asian companies, price erosion
and retail consolidation are just some of the other concerns facing Western European
appliances manufacturers. The most important current development in the structure of
the global manufacturing industry is the acquisition of The Gillette Company by The
Procter & Gamble Company (P&G), which is expected to be complete in autumn 2005.

Electrical retailing, meanwhile, is competitive, fast moving and technology driven,
and the abolition of resale price maintenance, the involvement of grocery multiples
and the advent of Internet retailing have contributed to making market conditions
difficult for the independent specialist retailer.

`Core\' small domestic electrical appliances, such as kettles, are regarded as
necessities in most households, the numbers of which continue to increase. However,
in other product sectors, it is generally possible to trade down or defer purchases
in any economic downturn. Ever-lowering prices for electrical equipment are
obviously of great advantage to the consumer, but ensure that value growth of the
market does not match that of rises in volume. How long the independent specialist
can survive with such low margins remains to be seen, but the manufacturers have
found themselves in a vicious circle. Reduced profits through discounting equate to
reduced investment in new product development (NPD), although this is essential to
expand the market. In addition, aggressive discounting might damage a brand\'s
reputation, which the independent specialist first helped to build.

Web Site = www.bharatbook.com

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