Falling sales, rising prices and growing interest in premium products and those equipped with the latest technologies: GFK, the world leader in the collection and analysis of data in household appliances, provides Médias24 with the figures achieved by the sector in Morocco in 2022.
Large household appliances: sales down in 2022
“In large household appliances (GEM), we were in a market of 4.423 billion DH (MMDH) in 2022, a drop of 2% in value compared to 2021. A peak in sales was recorded during the period of the Eid Al Adha, driven by refrigerators and freezers“, we learn from Sarah Charifi, head of market analysis at GFK.
“In volume, the GEM market recorded a decrease of 13%with 1.242 million units sold. The figures in volume are always less impressive than those in value, especially in this period of crisis, because in addition, prices have increased. Even if we record a big drop in volumeas was the case in 2022, in value, the decline is less significant,” explains our source.
Small household appliances: the constantly evolving market
And to continue: “For small household appliances (PEM), in 2022, the market has achieved 552 MDH in value, either an increase of 12% compared to 2021. Although this figure is lower compared to the achievements of the GEM market, that of the PEM remains constantly increasingand has been for several years now.
“Since the huge increase in sales achieved in 2020 during the confinement, where demand for several segments had exploded, in particular for coffee machines and electric shavers, the PEM market continues to grow.”
“In volume, we remain on a stagnant marketwith a decrease of -0.5% compared to 2021, but in value it continues to increase” she adds, explaining this phenomenon by “the increase in prices, but also by product premiumization“.
Explosion of prices across the sector
Whether for GEM or PEM, prices have exploded for almost all product segments. “For large household appliances, we are on a average price increase of 13.2% in 2022. Refrigerator prices have increased by 8%of 16% for washing machines and 14% for freezers.
Same story for the PEM. “We are also on a price increase of 12,4%especially for kettles (+22%), electric fryers (+29%), citrus presses (+15%) and coffee machines (+12%).”
This surge in prices can be explained by two parameters. The first relates to rising prices following the current situation, in particular because of the problems of importation and logistics encountered by all brands and importers. “We also have the premiumization effecta significant factor in the price increase.”
“Despite the market being down in volume and the household confidence index falling, we still have, in a good part of the segments we cover, premium sub-segments that continue to grow. We have a niche of consumers who continue to consume“despite the current crisis.
Entry-level and mid-range products are the most impacted by the price increase
Furthermore, “the increase in prices impacted entry-level and mid-range products more than high-end products. For example, for vacuum cleaners, sales are up 30% in value overall, mainly driven by upright vacuum cleaners who alone experienced a 48% increaseas well as robot vacuum cleaners (+57%)“.
“The same is true for electric coffee machines, including the automatic version with an integrated coffee grinder. a 19% increase in sales.”
“Same for TV. We have an increase of plus 5% in value, driven by large sizes; the small sizes being in decline. On sizes ranging from 65 to 70 inches, sales are up more than 51%. On TVs over 75 inches, the increase is estimated at 125%.”
“Always for the TVs, 8K UHD are up 54% compared to 2021 and the 4K UHD are at +12%. In this same segment, smart TVs continue to dominate the market, accounting for 80% of sales.”
Semi-automatic washing machines, a declining sub-segment
“However, for washing machines, we are on a decrease of 4% compared to 2021which is mainly derived by semi-automaticof which sales decreased by 35%. It’s an entry-level market, but also a sub-segment that has been in decline for years.”
“Four to five years ago, we were on a ratio of nearly 50-50 between automatic and semi-automatic machines. The latter were sold mainly in traditional markets or supermarkets. In recent years, we have observed a steady decline of this segment on both distribution channels.”
This decline is due to two main factors, explains our interlocutor. “First of all, because automatic machines are increasingly affordable. Secondly, import difficulties are impacting the price of semi-automatics on the rise.”
And to conclude: “On both small and large household appliances, we have a drop in sales for the entry levelwhile they increase considerably for the high end”.
READ ALSO: Household appliances: up 30% since the Covid, prices will increase further in 2023
