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Washing Machines

Racing Ahead as the Number One Large Appliance

For fiscal 2019, washing machines is the fastest-growing segment in volume terms among large appliances. Overall, the Indian appliances industry is poised to register a volume growth of 6–8 percent, with washing machines at 11 percent, attributed largely to lower penetration level.

Washing machine has become a necessity in the daily lives of the people. Its demand has been increasing in India due to increasing availability of new innovative models in the market and increasing PPP of the Indian middle-class families. It is no longer a luxury product but a utilitarian product.

The washing machine market is flooded with numerous leading electronics brands presenting a huge variety of models to choose from. It is available from a normal large-sized look to more portable and stylish look, such as top-loading, front-loading, fully automatic, and semi-automatic. New innovative washing machines include Bluetooth technology and a messaging feature, through which it can receive recommendations and control settings even when the user is away from home.

Indian market
The Indian washing machines market is estimated at Rs 10,492 crore in 2019, translating to 7 million units. The semi-automatic machines dominate with a 53 percent share by volume, and the fully automatic ones by 64 percent, by value. Within the fully automatic segment, the top-loading machines dominate with a 73 percent share by volume and a 62 percent share by value. However, a steady shift is being seen from the semi-automatic models to the fully automatic ones, even in Tier-II and Tier-III cities. The washing machines market in India is expected to grow at a CAGR of 11 percent over the period 2019 to 2022.

The washing machines market in 2019, by volume is dominated by LG with a 34 percent share. Samsung is at 19.7 percent, Whirlpool at 15 percent, Godrej at 9.7 percent, IFB at 6.2 percent, and Haier at 6.5 percent. Other aggressive brands include Intex, Truvison, Daenyx, T-Series, Daiwa, Aisen, Maharaja, Toshiba, and TCL, in the semi-automatic models; Panasonic, Bosch, Lloyd, Onida, Intex, and Mitashi in the top-loading models; and Bosch and private labels in the front loaders.

The year 2018-19 was a meaningful year as far as inverter technology is concerned. The Bureau of Energy Efficiency has formulated an energy-efficiency program – Standards & Labeling (Star Rating) – to be initially implemented on a voluntary
basis and remain valid till end December, 2020. Any model or brand of washing machine can avail star rating on a scale of 1 to 5 based on test report or equivalent labs subsequent to scrutiny by BEE. “We have estimated savings of over 3 billion units of electricity at consumer-end through the adoption of star-rated microwave ovens and washing machines by 2030. This would be equivalent to reduction of 2.4 million ton of CO2 by the year 2030,” says A K Bhalla, Secretary, Ministry of Power.

The consumer has become value-conscious and smart. For the economic level, her knowledge of high tech is very high. She is not making decisions because something is `1000–2000 cheaper. It is not always about the lowest price. With some customers, it is about premiumization. IoT-incorporated washing machines are being introduced by some brands. Instead of competing on just cost and price, they offer a high-value proposition based on consumer insights and technology.

Consumer appliances makers are seeking a cut in this year’s Union Budget to be presented on July 5, 2019, by the Finance Minister, on washing machines. In September 2018, the government had doubled the basic customs duty on washing machines (up to 10 kg) making them 5–8 percent costlier. This had offset the goods and services tax (GST) benefit
of 10 percent that was provided when tax on washing machines was cut to 18 percent.

Global scenario
The revenue in the washing machines segment is expected to amount to USD 60,980 million at 145.74 million units in 2019. The average price per unit of washing machine in the market amounts to USD 418.41 in 2019. With a market volume of USD 14,104 million in 2019, most revenue is generated in China. The market is expected to grow annually at a CAGR of 1.8 percent, from 2019 to 2023 to USD 65,560 million (160.75 million units) in 2023, according to Statista.

The residential washing machines market will register a CAGR of almost 6 percent by 2023. The growing number of working households is one of the key factors that will trigger the growth of the market. The female labor force participation has increased, resulting in lesser time being allocated for household chores. This has led to an equivalent rise in the demand for automatic washing machines.

Moreover, change in lifestyle, rising middle-class population; increase in the number of nuclear families, growing awareness about technology, and steadily increasing media penetration are the factors that have elevated the demand for residential washing machines.

The market of smart washing machines has experienced a rapid growth over the past 5 years, and the trend is forecasted to continue in the following decade. Worldwide, Europe and the US are the largest consumption markets of smart washing machines, driven by the high consuming capacity and desire for convenient life style. The markets in Japan, South Korea, and China are also developing fast.

In 2019, the market size of smart washing machines is anticipated to be USD 8130 million and poised to  reach USD 19,900 million in 2025, growing at a CAGR of 13.7 percent from 2019.

Smart washing machine is a kind of washing machine that is highly automotive. Compared to the traditional machine, this kind of machine can sense the quality and weight of clothing, judge water level and time, and time of washing. It has almost four built-in sensors, ensuring proper water level as per clothing quantity, precisely controlling and washing smartly.

Manufacturers are coming up with machines based on M2M technology. These pieces of equipment can send alerts to owners about their performance and other metrics. The options are endless; it is up to the consumer’s imagination and that of the manufacturers of household equipment to come up with ingenious ways to make life more convenient for everyone.

Some key features: a dispenser which auto-distributes detergent while clothes are being washed, touchscreen display available for both the washer and the dryer, and of course a machine which can be integrated with Alexa or Google Assistant voice commands so that it is easier to keep track of the laundry by using voice technology.

At CES 2019, manufacturers showcased their new smart washing machines. The best washing machine criteria in 2019 were listed as: it should clean clothes, bedding, and everything in between, freeing them of dirt, grime, and stains. The machine should offer a host of cycles and washing options, addressing a variety of scenarios from sheets to clothing to tough stains on furniture covers. And it should save money and reduce waste of water and energy. Most of the established brands are working toward this.

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