2022.03.23
Industry trends in February
APPLiAnytt presents industry developments in February: The industry as a whole maintains last year's record figures in February, but there are major differences between larger white goods (which are increasing) and smaller household appliances, which are declining.
The industry is up by just over a percent in February
February is the shortest month of the year, but it also delivers an increase this year. And even though we compare it to last year's very strong February figures, where the total then increased by a full 14 percent, this year's February shows an increase of another 1.3 percent.
This is to be viewed as positive in an international situation that contains major uncertainties and subdued household consumption (according to Statistics Sweden), slowed GDP growth and high inflation (4.5 percent in January) but continued strong housing production.
MDA is increasing significantly
The trending increase we have seen in sales of major appliances (MDA) over the past six months continues in February of this year. With a plus of 5.2 percent, sales are showing muscle – if we compare it to February 2020, the increase is a whopping 19 percent!
During the month, the most positively bubbling product categories are washer/dryers, dishwashers, freestanding microwaves and larger refrigerators with 'multiple doors', all of which are increasing significantly compared to February 2021.
How will the market develop in the future?
One factor is that the HBV agreement, the public utility procurement, will come into force on 21 April. The framework agreement covers household appliances, such as cookers, refrigerators, freezers, fridge-freezers as well as dishwashers, washing machines, tumble dryers and drying cabinets. This is the largest single procurement of white goods in the world and is worth between SEK 2.8 and 4 billion over the next four years. This may now mean greater pressure on purchases for replacements and renovations in the public utility housing companies' housing stock, as many of the large players with extensive projects in the start-up phase have chosen to wait until the new agreement.
SDA loses compared to last year
Household appliances (SDA) are down just over 10 percent compared to February last year. Remember that last February saw an exceptional increase of over 30 percent. This means that sales of household appliances are still at a very high level compared to before the pandemic.
The coffee machine category is having a bad month, landing at minus 24 percent, and the 'toasters & grills' category, which includes Air Fryers, is also declining to about the same extent this month.
Two areas that are going against the grain and improving the figures for SDA are the categories 'hair care' (with hairdryers etc.) and 'hair removal' for both men and women, which have a very strong month in February. Food processors can also rejoice in a good February!
Another hero of the month in February was the 'kettle' category, which increased its average price on the market by no less than 35 percent in February! Increased consumer demand for higher performance and beautiful design in this category as well!
Kent Oderud, Chairman of APPLiA
