Consumer appliances in Malaysia exhibits an improved performance during 2011
Consumer appliances in Malaysia recorded a better performance in 2011 than in 2010 as the ongoing recovery of the Malaysian economy led to many consumers regaining their former spending power, making them more willing to spend on consumer appliances. The general rise of affluence in Malaysia also spurred spending as consumers were willing to pay higher prices for better quality premium products. As a result, stable increases in both volume sales and value sales were recorded in consumer appliances during 2011.
Eco-friendly products begin to capture the attention of Malaysian consumers
Malaysian consumers are becoming better educated about and more aware of health and wellness issues. For example, higher numbers of Malaysian consumers are now concerned about the detrimental health impact of poor air quality. Malaysia as a country also aims to reduce carbon emissions by 40% between 2009 and 2019. In response to this, the manufacturers of consumer appliances are capitalising on this trend by introducing eco-friendly consumer appliances. Towards the end of the review period, some of Malaysia's more affluent consumers became very interested in this trend and are now more inclined to purchase consumer appliances which offer eco-friendly functions and features.
Published: February 2012
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Intensified promotional efforts lead to volume share gains
In Malaysia, some consumer appliance categories such as dishwashers, mixers and ovens are not considered to consist of essential products, while others such as refrigerators are considered to be necessary items for all households, although the replacement of these appliances can be delayed in the event that consumers wish to cut down on spending. As such, the retailers and manufacturers of consumer appliances in Malaysia engage in regular promotions for consumer appliances. Promotional efforts such as offering discounts, rebates and value packs are some of the ways in which consumers are enticed to purchase new appliances and trade up. Consequently, the level of competition in consumer appliances intensified during 2011 as manufacturers engaged in high levels of price competition in order to offer better value.
Consumer appliances to sustain growth in the forecast period
Consumer appliances is expected to post steady growth over the forecast period thanks to the increasing levels of affluence among local consumers as well as the higher demand for the greater convenience which consumer appliances can add to households. Despite the fact that higher numbers of Malaysian consumers are expected to trade up to higher-end consumer appliances over forecast period, heavy price discounting and aggressive price promotions are still expected in consumer appliances during the forecast period. In addition, in categories which still have low penetration in Malaysia, it is expected that new sales will be driven by local consumers adopting modern Western lifestyles, leading them to use ovens rather than conventional hobs in their homes.