Consumer Appliances in Australia

Dallas, TX -- (SBWire) -- 01/23/2012 --Housing market drags consumer appliances down

As the current global economic turmoil continues to have a serious effect on consumer appliances in Australia, it is the impact of the economic crisis upon Australia’s housing market which is giving most cause for concern. With interest rates rising from record lows in 2009 and consumer confidence remaining low, many prospective Australian home owners are no longer interested in purchasing their own homes.

Obviously, this means that these prospective home owners are no longer purchasing consumer appliances, particularly major appliances, which recorded very low volume growth during 2011 in consequence. Although there has been a rather strong upswing in home renovation, this has not so far been insufficient to stimulate strong growth in consumer appliances.

Unit price erosion fuels growth in volume sales of consumer appliances

Although the Australian economy stagnated somewhat during 2011, its performance remains superior to the remainder of the developed world, with the result that the exchange value of the Australian dollar has appreciated considerably against major currencies, making imported products more affordable. This has led to considerable unit price erosion, particularly in those categories that have been embraced by the private labels of Australia’s mass merchandisers, which suddenly became more popular during the economic slowdown. This unit price erosion however, has allowed consumers who previously would not have been able to afford various consumer appliances the opportunity to purchase them, an opportunity that they have embraced wholeheartedly, leading to significant volume growth in many categories. However, due to falling unit prices, this has not been translated into strong value growth.

Sales of food preparation appliances boom

Food preparation appliances was the fastest growing category in consumer appliances in Australia during 2011, partially due to the success and popularity of cooking-based reality television show MasterChef and partially due to the growing general interest in cooking and gastronomy in Australia. Unit price erosion also played a part, enabling consumers to acquire food preparation appliances which they would previously not have been able to afford. However, for the most part it is the growing interest in all things culinary which lies behind the burgeoning popularity of food preparation appliances in Australia.

Sunbeam remains the largest consumer appliance brand despite the surge in private label

Whilst the popularity of private label consumer appliances, particularly those of mass merchandisers such as Kmart and Big W, surged in Australia during 2011—particularly in small appliances—Sunbeam remains the country’s leading consumer appliances brand, holding number one position in categories as diverse as food preparation appliances and irons. The threat of the growing presence of private label consumer appliances cannot be ignored, however, and GUD Holdings, the owner of the Sunbeam brand, has consequently launched its own low-price brand, Novo.

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