Built-in appliances are meant for HNI (High net worth individuals) customers and come with a premium pricing. Consumer durables major players like Whirlpool, LG, Electrolux, Samsung, BSH, etc are looking to double the business from the built-in appliances space. Major players have tied-up with real estate players like DLF through which they are able to provide the appliance solutions to their customer.
Built-in major domestic appliances (MDAs) like built-in cookers/stoves, hobs, dish washers, freezers, microwaves, tumble dryers and washing machines were the pacemaker in global domestic appliance sales growth in the market in 2017. Taking almost USD 1 of every USD 4 spent, sales of built-in MDAs increased 3.61%. Without the contribution of built-in, the global MDA market would not have grown at all in 2016. Apart from China, Qatar, Turkey & UAE are the most dynamic geographic markets for built-in products.
Qatar & UAE is dominated by Western manufacturers and a large market for replacement products is emerging. Penetration in other GCC countries is low, but growth is high and in line with rising household purchasing power. The Middle East offers a base for regional manufacturing but is impacted by political uncertainty. Demand for appliances in emerging markets continued to be strong in 2018.
With its Generation 7000, Miele renewed its entire product range of built-in kitchen appliances, from ovens and hob units to steam ovens, coffee machines through to dishwashers. Home appliances maker Whirlpool, which is aiming to double sales in the next four years, expects non-core segments such as air-conditioners and built-in kitchen appliances to contribute to 20% of total sales by then.
How could Middle East Build-in Appliances Market address the COVID-19 concern?
The impact of COVID-19 and the economical plunge in the Middle East and the Caucasus and Central Asia has been substantial and could intensify. With three-quarters of the countries reporting at least one confirmed case of COVID-19 and some facing a major outbreak, the coronavirus pandemic has become the largest near-term challenge to the region. Like much of the rest of the world, people in these countries were taken utterly by surprise with this development.
Beyond the devastating toll on human health, the pandemic is causing significant economic turmoil in the middle east region through simultaneous shocks—a drop in domestic and external demand, a reduction in trade, disruption of production, a fall in consumer confidence, and tightening of financial conditions.
Further, measures to contain the pandemic’s spread are hurting key job-rich sectors: tourist cancellations in Egypt have reached 80 percent, while hospitality and retail have been affected in the United Arab Emirates and elsewhere. Given the large numbers of people employed in the service sector, there will be wide reverberations if unemployment rises and wages and remittances fall.
