Indonesian Consumers Bought Nearly USD 600 Million Worth of Small Domestic Appliances in 2012

Upgrading of Appliances Spurs Growth

The developing economy of Indonesia is going through an upgrading phase where consumers are switching to newer, better and more expensive technologies. Households in the world’s fourth largest country are buying more of and upgrading their small domestic appliances such as rice cookers, vacuum cleaners, blenders, irons and electric fans, etc contributing to sales of over 24 million units worth USD595 million in 2012.

Findings from GfK Indonesia confirmed the flourishing state of the small domestic appliances market which registered robust double digit growth for the last three consecutive years. In 2012, every single product segment tracked reported heightened demand, fuelling total market growth by 10 and 8 percent in value and volume sales respectively over 2011. Rice cookers, which sold over 7 million units valued at over USD 179.6 million is the major contributing segment to the country\’s small domestic appliances industry.

On the other hands to GfK reports shows the strong market growth in the country is boosted by escalating demand for medium upper segment. Medium upper products, which is defined as costing over USD30 per unit, saw an increase in total value share by 5 percent to reach 30 percent in 2012, contributing USD180 million in overall sales.

“Rising affluence has increased willingness of consumers to splurge on more quality products,” said Guntur Sanjoyo, Managing Director of GfK Indonesia. “Greater consumer awareness and sophistication also play a major role to motivate those with higher purchasing power to adopt a more technology savvy lifestyle in all aspects of their life, including household appliances.”

Although the local scene is predominantly made up of local manufacturers, presence of European and Japanese brands has been on the rise. In 2012, total combined sales from the 26 existing foreign manufacturers in the market contributed 37 percent to the overall industry worth.

“These international players offer a wider and more advanced range of digital technology appliances, elevating the status of small domestic appliances as not merely a basic household tool but one that offers a lifestyle with its aesthetic design and enhanced features,” said Sanjoyo. “As market demand for these higher end products continue to soar, we can look forward to see continued rise in sophistication of the small domestic appliances market, which is set to achieve yet another stellar performance this year,” he concluded.