29 December, 2014, New Delhi—India’s microwave oven industry had been reporting unimpressive showings in the past couple of years until lately, where market started trending up. Appliance sales, which slowed down by 3 percent last year, showed a spike in consumer spending to turn in a strong double digit growth in January to October 2014 when compared to the same period a year ago.
According to findings from GfK, consumers in the country spent over USD170 million on 1 million microwave ovens in the first ten months of 2014; translating to 14 percent increased sales spending and slightly over 1 percent in sales volume.
“The microwave oven is usually considered a non-essential kitchen appliance in the traditional Indian household,” highlighted Nikhil Mathur, Managing Director, GfK in India. “Changing demographics combined with rising disposable income has turned things around as consumers are now more willing to spend on microwave ovens to enjoy greater convenience,” he said.
The latest three months of sales tracking (August to October ) reported an impressive spike in sales volume by 25 percent against the same period in 2013; driven largely by the Diwali season and the period leading up to the festivals.
Convection microwave ovens remain the dominant type preferred by households, accounting for 4 in every 5 (80%) microwave ovens sold in India this year. This segment grew strongly in the first ten months of 2014 with its double digit (10%) volume growth—significantly higher than the grill or solo microwave ovens.
One apparent trend which has emerged in convection ovens is the fragmentation of the market towards the lower end and the higher end capacity microwave types.
“The smaller capacity (21 liters or less) convention microwave ovens are popular with the more price conscious consumers whereas demand for the larger capacity models (32 liters and above) have largely been fuelled by manufacturers; given that almost a quarter of all microwave ovens launched since the beginning of the year belonged in this category,” noted Mathur.
The lower end segment has been instrumental in driving the increasing take up of overall convection in first ten months of the year, making up more than a third of the total market’s sales volume. Meanwhile, value expansion of the microwave ovens market has been contributed by the larger capacity models. Sales dollars generated by the segment nearly doubled to reach 15 percent during this same tracking period.
“India’s home appliances market witnessed an overall healthy growth of 15 percent this year, and is likely to close the year strongly, thanks to the year-end festive buying,” explained Mathur. “The continued stability of the Indian economy will provide a conducive environment for the sustained high demand of microwave ovens in the coming years and we expect to see deepening penetration of the appliance not just in metro India but the rural cities as well,“ concluded Nikhil.
About GfK
GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions. More than 13,000 market research experts combine their passion with GfK’s long-standing data science experience. This allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries. By using innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive edge and enrich consumers’ experiences and choices.
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