Connect with us

Washing Machines

Washing Machines – The Fastest Growing among HA

For fiscal 2019, washing machines segment is poised to be the fastest growing segment in volume terms among large appliances. Overall, the appliances industry is expected to see a volume growth of 6–8 percent, with washing machines growing at 10–11 percent Y-o-Y.

With shortening replacement cycles, rising spending habits, improved electricity availability, technology advancement, and evolving lifestyles, the washing machines segment is the one attracting maximum traction. The exposure to global technologies and lifestyle has created a shift in perception, with this appliance no longer just viewed as a utility product. Also, the impact of the weak rupee is more on ACs and TVs, owing to their higher import content, as opposed to its impact on washing machines.

2018. The washing machines market size in India is estimated at 6.5 million units with the second-lowest penetration among household appliances at 11 percent. There has been a perceptible increase in the industry in value terms, as the consumer over the year has shown a distinct shift in preference for the larger models, in both categories, semi-automatic and fully automatic, across urban and rural areas. The market is estimated at Rs 9571 crore, with fully automatic machines dominating at 62.6 percent. Within the fully automatic segment, the top loaders reign with a 63.43-percent revenue share.

LG continues to dominate the market with a 37-percent share, by volume. Samsung, Whirlpool, and Godrej have an aggressive presence. IFB has presence only in fully automatic models. Videocon continues to lose market share, gainers being the regional, relatively smaller brands.

Moving forward, LG plans to focus on growing these categories further, given that there is very low penetration and huge potential by introducing models with new energy- and water-saving technologies. Samsung is heading toward being IoT-ready and will soon launch machines featuring the Bixby AI interface. For Whirlpool India, washing machine is the second largest contributor, accounting for 20 percent of the company’s revenue. Godrej has strengthened its manufacturing capacity of washing machines at its plant in Mohali from 4 lakh to 6 lakh units per annum, and is targeting 25 percent growth in the category. Washing machine is the largest product category of IFB, contributing 65 percent to total home appliances’ revenues in FY17. With an industry leadership in front-load washing machines, the brand is enhancing top-load washing machine portfolio, with the launch of a mass market 6 kg variant.

This year, Daiwa has forayed with semi-automatic models in the Punjab market and is steadily expanding its network. With the concept of a double-drum technology washing machine, Haier is establishing a step ahead toward understanding diverse needs of discerning customers. Truvison has strengthened its product portfolio with semi-automatic machines powered by the PowerSkrub technology. Daenyx is looking forward to maintaining its position in producing a wide range of fully automatic and semi-automatic washing machines starting from 6 kg to 10 kg capacity. Akai aims to acquire a substantial pie in the market with its range of semi-automatic and fully automatic washing machines, ranging between 6.5 kg and 8.5 kg. GEM has set up a new manufacturing line for its Triomatic washing stations and has enhanced its production capacity from 0.75 million to 1.25 million units at its Baddi plant, Himachal Pradesh, with further plans to install a new plant in Baroda, Gujarat, with a capacity of 1 million washing machines starting September 2018. Wybor has established a fully integrated manufacturing facility in Greater Noida with an installed capacity to produce 600,000 washing machines per annum. The brand is planning presence in the Western and Southern markets of India. Vestar, with its strong product lineup of semi- and fully automatic models ranging from 6 kg to 8.5 kg is focusing on superior technologies including inverter, single touch, and one-key thermal sterilization. Panasonic India aims a double-digit growth in the washing machines category by FY21. Onida has targeted to grow in this category by 80 percent during the current year, generating revenue of Rs 1.6 crore and is targeting rural markets with semi-automatic washing machines and washers.

In terms of capacity, the 6-kg washing machine is almost non-existent. And the 7-kg and above capacity machines are seeing maximum traction.

Driven by the rise in household income, rising urbanization, increased number of nuclear families, rising manpower costs (domestic help) in urban areas, rising trend of working women, and availability of consumer finance, the trend is expected to continue over the next few years. Further, replacement demand also provides incremental avenues to tap existing customers as the average life of a washing machine is 7–8 years.

Front-load washing machines provide a better wash quality similar to a laundry wash because of tumble motion, higher revolutions per minute (which increases cleaning efficiency), and the in-built water heater which facilitates better stain removal. Front-load has a higher wash-cycle time of 90 min versus 45 min for top-load. It has a higher drying capacity at 75–80 percent versus top-load, which offers drying capacity of 50–60 percent. These washing machines use less water (~50–60 liter per wash cycle versus ~120 liter for top-load) and have lower power consumption and better voltage management system. Hence, the product premiumization trend favors front-load washing machines. However, the top-loading machines continue to have a higher share as the price difference between the two is substantial.

Convenience to the consumer is a key factor fueling demand for washing machines. One of the trends seen in the washing machines market in recent times is the use of technology that reduces the use of water for washing. The growing scarcity of water worldwide and the realization that water is a limited natural resource have compelled manufacturers to devise a technology that minimizes the use of water. Smart washing machines have also gained traction in recent times on account of the increasing penetration of IoT and smartphones. Ability to operate remotely, control functions of the washing machine by using smartphones, and receipt of notifications are expected to increase popularity of these machines.

Global scenario
The global washing machines market is prognosticated to rake in ample amount of demand from the residential sector as consumers reveal a major inclination toward smart and connected products. Vendors in the market are taking to products which can be managed and controlled with a few touches on the consumer’s smartphone.

Residential washing machines. The global residential washing machines market is projected to reach USD 53,193 million by 2023, growing at a CAGR of 5.5 percent from 2017 to 2023.

The fully automatic market is expected to grow at a CAGR of 5.6 percent, in terms of value. The semi-automatic and dryer segments are anticipated to grow at 5.3 percent and 5 percent respectively, in terms of value.

The Asia-Pacific market witnessed rapid growth, as residential washing machines have gained popularity only recently owing to their compatibility and user-friendliness features. In addition, rapid urbanization, and an expanding middle-class population drive this market. In 2016, Asia-Pacific and Europe collectively accounted for more than 73 percent of the global residential washing machines industry. Moving forward too, the Asia-Pacific region is projected to grow at the highest rate, followed by LAMEA. The region is expected to grow at the highest CAGR of 6.5 percent, in terms of value.

The global smart connected washing machines market is projected to reach USD 13,631 million by 2023, growing at a CAGR of 22.6 percent from 2017 to 2023. The residential segment is expected to dominate the market, as these smart connected machines have gained high preference among residential consumers, as they have prefect laundry washing capabilities for most residential users globally. The residential segment is anticipated to grow at a high CAGR of 22.8 percent.

Technology update
Technological and innovative advancements related to washing machines present a major opportunity for manufactures operating in this market. Numerous advancements have been carried out in these machines during the last decade, leading to their higher efficiency, in terms of saving water and electricity. Introduction of smart washing machines has led to a major increase in demand. Wi-Fi is being extensively used in smart washing machines, while near-field communication is also being explored to establish radio communication with smartphones, and to bring them in proximity.

Features such as auto-optimal wash, smart control, eco-check, smart diagnosis, smart nudges, automatic detergent dispensing, power wash system, and steam- care functions have been launched. Many models are also incorporating self-cleaning elements. These features often use soaking and high-speed spinning to clean them without the use of chemicals. Programs with quicker cycles but running with similar efficiency are being added. Considering consumer’s busy lifestyle, many appliance makers are introducing speedy cycles/quick programs. The segment is living the twin-drum age – be it twin washers or washer and dryer below one another. The latest technologies also help in reducing the usage of materials, such as detergents and softeners. The quality of water used is also monitored. The hardness of water is determined. Consumers are getting options to add clothing mid-cycle, lower energy usage, optimize wash cycles, and control cycles remotely. Air refresh technology is also among the most popular technologies used in the washing machines. This technology initiates the induction of fresh air into these machines and heating the air too. Washing and drying of clothes is done with the help of this air and steam.

The washing machines category is poised for strong long-term growth globally and its penetration is likely to rise rapidly. The market could invite an optimistic impact as newer technologies take precedence to address the demand for water and power-efficient, next-generation products. When compared with 11.3 percent CAGR in per capita GDP over FY10–17, the average selling price of washing machine increased by only 5 percent over the same period. Thus, the affordability of washing machines has improved considerably over the past 7–10 years, while its growth outlook is bright as the washing machine is becoming a necessity in the modern lifestyle.

Based on market research conducted by TV Veopar Journal in July 2018.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2023 TV Veopar Journal