Consumer Appliances in The Philippines
Consumer Appliances in The Philippines
PHILIPPINES
Euromonitor International
January 2016
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Outlook
To be able to address the growing concern over the electricity supply, the government and
other agencies are planning to rely on other forms of electricity generation such as solar panels
and other renewable energy sources. Sustainable energy and efficiency programmes will
become increasingly important over the coming years. The government is also expected to be
more stringent on the implementation of programmes such as the energy and efficiency labelling
programme for appliances such as air conditioners. On the other hand, the rising cost of
electricity will motivate consumers to purchase these products for the associated cost savings.
With the government at the forefront of change, these initiatives are expected to motivate the
private sector to invest more in energy-efficient technology. A bottom-up approach in targeting
consumer awareness of these products is also likely to positively contribute to demand. Despite
the absence of direct government funding for the development of energy-efficient technology,
the aforementioned programmes are likely to shake things up in the market and get things
started.
Outlook
One strategy to get consumers to shift to internet retailing is to have popular electronics and
appliance specialist retailers, such as SM Appliance Center and Abenson, on board. This has
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already happened as both companies are now building their internet retail channel. Both
websites are already functional but based on the graphics and features found on the page are in
early development stages. Marketing promotions to boost consumer awareness, efforts to
improve website security and expand payment options, and including the product portfolio as
available in their physical stores are likely to allow the channel to make significant headway.
Increasingly modern lifestyles are also enabling consumers to be more receptive to internet
retailing. With roads becoming more congested because of the increasing number of cars in
operation, consumers will be relieved to not have to head out and just purchase what they need
online. A mixture of different factors, including changes in consumer lifestyles and
improvements in the security and overall experience of internet retailing in the country, are
expected to vastly improve the outlook for the channel over the forecast period.
Outlook
Despite the political uncertainty arising from the 2016 presidential elections, the country is
expected to have a generally positive outlook for the economy. The availability of jobs from the
Business Process Outsourcing (BPO) sector and various establishments such as hotels and
restaurants are expected to keep enabling Filipinos to earn higher disposable incomes. The
increasing number of the population moving into their own houses or condominiums will
continue to positively contribute to sales of consumer appliances.
The presence of more specialised consumer appliances, such as breadmakers, juice
extractors and electric facial cleansers, may increase over the forecast period as Filipinos
become more sophisticated consumers and become more willing to invest in appliances which
were once considered non-essential. The increasing importance of appearance will also
influence purchasing decisions as consumers choose brands with more attractive designs over
pure functionality.
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these devices for their dads on Father’s Day. This was accompanied by in-store promotions in
department stores such as Rustan’s.
Meanwhile, domestic brands such as Imarflex and 3D tend to rely on word-on-mouth
advertising. They trust that the quality of their products and low-pricing strategy will help them
achieve sales. Domestic companies may also keep advertising material to a minimum so that
they can pass on these savings to consumers in the form of lower prices. However, there are
domestic companies that do make use of advertising material. Hanabishi is currently being
endorsed by the local celebrity Vic Sotto in order to strengthen its appeal in the market. In
general however, domestic companies’ advertising and promotional activity is more limited.
Outlook
Multinational companies will continue to invest more in the marketing and promotion of their
products. Their higher budget allocation allows them to regularly put out press releases and
initiate advertising campaigns that will help contribute to their bottom line. On the other hand,
domestic companies will tend to continue to rely on word-on-mouth advertising and pass on the
savings to consumers. These companies may choose to do this as they cater to a more price-
conscious segment of the market in the first place.
However, in the case where domestic companies have enough funds, they may also make
use of marketing campaigns, such as celebrity product endorsements as in the case of
Hanabishi. These companies may rely on their local expertise in order to effectively reach their
market. Bigger domestic companies such as Concepcion Industrial Corp may also engage in
campaigns to promote its brand of air conditioners as well as to grow its line of small appliances
from Midea which it acquired in 2013.
MARKET INDICATORS
Table 1 Household Penetration of Selected Total Stock Consumer Appliances by
Category 2010-2015
% households
2010 2011 2012 2013 2014 2015
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MARKET DATA
Table 3 Sales of Consumer Appliances by Category: Volume 2010-2015
'000 units
2010 2011 2012 2013 2014 2015
PHP million
2010 2011 2012 2013 2014 2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
'000 units
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- Built-in Freezers - - - - - -
- Freestanding Freezers 62.2 63.9 64.9 65.9 67.0 68.3
Fridge Freezers 733.6 682.3 742.3 777.2 816.1 859.3
- Built-in Fridge - - - - - -
Freezers
- Freestanding Fridge 733.6 682.3 742.3 777.2 816.1 859.3
Freezers
Fridges 12.2 10.3 10.7 11.0 11.3 11.6
- Built-in Fridges - - - - - -
- Freestanding Fridges 12.2 10.3 10.7 11.0 11.3 11.6
Refrigeration Appliances 808.0 756.6 817.9 854.1 894.4 939.2
Built-In Major Appliances 36.1 38.2 40.3 43.0 45.8 47.9
Freestanding Major 1,731.0 1,723.4 1,857.2 1,945.6 2,034.9 2,135.6
Appliances
Major Appliances 1,767.2 1,761.6 1,897.4 1,988.6 2,080.7 2,183.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
PHP million
2010 2011 2012 2013 2014 2015
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% volume growth
2014/15 2010-15 CAGR 2010/15 Total
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'000 units
2010 2011 2012 2013 2014 2015
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PHP million
2010 2011 2012 2013 2014 2015
% volume growth
2014/15 2010-15 CAGR 2010/15 Total
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% retail volume
Company 2011 2012 2013 2014 2015
% retail volume
Brand Company 2012 2013 2014 2015
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% retail volume
Company 2011 2012 2013 2014 2015
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Philippines Inc
Midea Group Co Ltd 0.1 0.1 - - -
Sanyo (Philippines) Inc 0.1 - - - -
Salton Inc - - - - -
Applica Inc - - - - -
Russell Hobbs Inc - - - - -
Others 34.3 33.6 33.1 32.9 32.8
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
% retail volume
Brand Company 2012 2013 2014 2015
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% retail volume
2010 2011 2012 2013 2014 2015
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- Builders Merchants - - - - - -
Non-Store Retailing 0.1 0.1 0.1 0.1 0.2 0.2
- Homeshopping - - - - - -
- Internet Retailing 0.1 0.1 0.1 0.1 0.2 0.2
- Direct Selling - - - - - -
Total 100.0 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Note: Others includes sales from door to door selling, warehouse clubs etc
% retail volume
2010 2011 2012 2013 2014 2015
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'000 units
2015 2016 2017 2018 2019 2020
PHP million
2015 2016 2017 2018 2019 2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
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'000 units
2015 2016 2017 2018 2019 2020
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PHP million
2015 2016 2017 2018 2019 2020
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- Built-in Automatic - - - - - -
Washing Machines
- Freestanding 4,118.6 4,448.0 4,781.7 5,116.6 5,448.9 5,775.8
Automatic Washing
Machines
Semi-Automatic Washing 3,717.4 3,829.0 3,924.7 4,003.2 4,075.1 4,140.3
Machines
Other Home Laundry - - - - - -
Appliances
- Other Built-in Home - - - - - -
Laundry Appliances
- Other Freestanding - - - - - -
Home Laundry Appliances
Home Laundry Appliances 8,864.6 9,341.7 9,805.8 10,252.9 10,688.8 11,111.5
Built-in Large Cooking 454.5 476.8 498.7 519.5 538.8 557.6
Appliances
Freestanding Large 2,314.9 2,430.2 2,545.3 2,655.3 2,760.5 2,864.3
Cooking Appliances
Built-in Hobs 196.3 207.6 219.1 230.0 239.7 249.2
Ovens 89.9 92.4 94.7 96.8 98.7 100.5
Cooker Hoods 168.4 176.8 185.0 192.7 200.4 207.9
- Built-in Cooker Hoods 168.4 176.8 185.0 192.7 200.4 207.9
- Freestanding Cooker - - - - - -
Hoods
Cookers 1,847.0 1,939.2 2,032.3 2,121.8 2,206.7 2,290.6
Range Cookers 468.0 490.9 513.0 533.5 553.8 573.7
Large Cooking Appliances 2,769.4 2,907.0 3,044.0 3,174.8 3,299.3 3,421.8
Built-in Microwaves - - - - - -
Freestanding Microwaves 1,523.1 1,614.5 1,703.3 1,788.5 1,868.9 1,943.6
Microwaves 1,523.1 1,614.5 1,703.3 1,788.5 1,868.9 1,943.6
Built-in Refrigeration - - - - - -
Appliances
Freestanding 14,697.3 15,566.5 16,418.1 17,241.9 18,028.8 18,801.1
Refrigeration Appliances
Electric Wine Coolers/ - - - - - -
Chillers
- Built-in Electric - - - - - -
Wine Coolers/Chillers
- Freestanding - - - - - -
Electric Wine Coolers/
Chillers
Freezers 1,168.6 1,165.1 1,159.3 1,150.0 1,138.5 1,123.7
- Built-in Freezers - - - - - -
- Freestanding Freezers 1,168.6 1,165.1 1,159.3 1,150.0 1,138.5 1,123.7
Fridge Freezers 13,395.0 14,266.0 15,122.1 15,954.1 16,751.8 17,538.2
- Built-in Fridge - - - - - -
Freezers
- Freestanding Fridge 13,395.0 14,266.0 15,122.1 15,954.1 16,751.8 17,538.2
Freezers
Fridges 133.7 135.4 136.8 137.9 138.6 139.1
- Built-in Fridges - - - - - -
- Freestanding Fridges 133.7 135.4 136.8 137.9 138.6 139.1
Refrigeration Appliances 14,697.3 15,566.5 16,418.1 17,241.9 18,028.8 18,801.1
Built-In Major Appliances 634.9 658.3 681.4 703.7 724.6 745.2
Freestanding Major 27,462.8 29,018.4 30,539.9 32,007.4 33,416.4 34,790.6
Appliances
Major Appliances 28,097.7 29,676.7 31,221.4 32,711.1 34,141.1 35,535.8
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
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% volume growth
2015/16 2015-20 CAGR 2015/20 Total
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'000 units
2015 2016 2017 2018 2019 2020
PHP million
2015 2016 2017 2018 2019 2020
% volume growth
2015/16 2015-20 CAGR 2015/20 Total
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DEFINITIONS
Explanations of words and/or terminology used in this report are as follows:
Sari-sari store – a small shop found in neighbourhoods or side streets selling a variety of
products from snacks to laundry detergent
SOURCES
Sources used during research include the following:
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