What is expected from the last quarter of 2022 in the industry?

If 2020 was the pandemic year that made us change our consumption patterns, then 2021 was the year characterized by logistics chaos and component shortages but also record growth in our industry. Now 2022 will probably be the year that will be characterized by total chaos. Inflation is rising. The krona is weakening. Energy prices are skyrocketing. Less space for consumption. And now we are already in the fourth quarter and we are all asking ourselves what the end of the year will really be like for the industry's sales.

The white goods and household appliances industry has historically been characterized by significantly higher demand in the second half of the year than in the first part of the year. For the smaller This is particularly evident in small domestic appliances (SDA), but also MDA – the larger appliances – have historically seen increased sales during the second half of the year. All graphs show market sales per month over the years 2020 and 2021.

SDA in the Santa sack?

For SDA, sales during the months of October and November for Christmas activities have always been strong. Many of the industry's household appliances are in great demand as Christmas gifts. Some industry categories have also been named "CHRISTMAS GIVEAWAY OF THE YEAR" by HUI over the years and have achieved great sales success; e.g. bread machine, juice extractor, wok and robot vacuum cleaner.

During The pandemic set many sales records for several product categories such as coffee machines, air fryers and kitchen assistants. There are currently no expectations that we will again top the market trend and match these record numbers for these types of products this year.

Early Christmas shopping

The fact that Christmas shopping starts earlier than expected this year and that customers are likely to be more price-sensitive means that retailers must be quick to act so as not to miss out on opportunities. ”First come first served” may become a truth in this year's Christmas sales during the chaotic year of 2022.

Appliances essential for Christmas peace

But in terms of sales value, there will probably continue to be high demand for the products that consumers want to buy before Christmas and that they need. Products that are less necessary will probably be less sought after even at a lower price. As for the larger appliances (MDA), these are not entirely logically linked to Christmas gifts (a fridge/freezer is not that easy to wrap up and put under the tree), but still have three factors that speak for a continued strong market during the end of the year:

Refrigerators, freezers, stoves, washing machines, dishwashers, etc. are today essential products that most Swedes cannot live without. Especially not during long weekends with a focus on cooking in the family. A worn-out product is always replaced if it cannot be repaired.

There is also still a high proportion of deliveries of complete white goods equipment for installation in newly built homes at the end of the year (which will, however, decrease in coming years as the number of construction starts decreases dramatically in Sweden).

Energy efficiency is most important

But the most important positive factor is the consumer's dramatically increased interest in the trade for energy-efficient and energy-efficient appliances. Electricity prices have reached heights we have never seen before in Sweden and in all apartments, houses and cottages there is intensive thinking about how to minimize their own electricity costs. Newly produced appliances can save thousands of kronor a year in reduced consumption compared to older equipment in the home. The energy label helps to make the right purchasing decision.

Billions for energy efficiency

Of course, there are products in the industry range that are particularly well suited to these tougher economic times and that can be good ammunition in marketing before the end of the year. So that some of the government's recently presented "energy support" of 53 billion to consumers can also be used to purchase energy-efficient appliances to reduce future electricity bills.

This year's most sensible family Christmas gift: an energy-efficient fridge/freezer! But expect to use a lot of Christmas wrapping paper and tape!

/Kent Oderud

Market development