The sector electro-home grew for the fifth consecutive year in 2018, a year in which it reached an expansion of 5% and recorded 9,229 million euros in sales, according to data collected in the sector report of the Spanish economy 2019 prepared by the Risk Unit of CESCE, Spanish Export Credit Insurance Company. The segment of product that grew the most in the last year was that of domestic telecommunications, which increased by 10%. The good behavior of household consumption and the consolidation of residential real estate market growth contributed to this growth. The report indicates that, in the short term, it is expected that the increase in demand for appliances in the sector, both replacement and new equipment, will be maintained, although the economic slowdown in which the European continent is immersed will penalize Spanish manufacturers when exporting.
By companies, Bosch, with its Balay factory in Zaragoza, closed 2018 with sales in Spain of approximately 2.5 billion euros, an increase of 6%. Along the same lines, the Teka manufacturer, based in Santander, saw its sales increase by 7% in 2018, reaching 778 million euros. Also noteworthy is the latest data published by the Electrolux group, which shows that its sales in Spain increased by 8.6%, reaching 166 million euros.
China, at the head of imports
As in other sectors, China's importance in the weight of imports of the electro-household sector is increasing every year. If in 2013 the products purchased from this country accounted for 24.5% of the total imported electrical appliances, in 2018 this percentage rose to 27.1%.
Only in the category of home appliances, this percentage is even higher, since it has increased from 32% in 2013 to 36.7% in 2018. Undoubtedly, Chinese brands such as the air conditioning giant Haier or groups such as Midea or Hisense have increasingly more important penetration in the Spanish market, especially if you take into account that we are talking about the first groups in the world market . For example, Haier is the market leader in air conditioning with connectivity, with a market share of around 21%. In addition, the Chinese manufacturer raises its international share in the area of refrigerators, freezers and washing machines to 14%. The second country of origin by importance of imports in this sector is Poland, which brings together 13.7% of the total imported. There stands out as the main actor the multinational group Amica, which this year has reached a pre-agreement for the signing of a license that allows it to market appliances under the Fagor brand. Also highlights Turkey. Its import figures increase year after year and accounted for 8.6% of total purchases in 2018. Among its greatest exponents are brands such as Vestel – integrated into the Zorlu group – or Beko, from the Arcelik group. Beko markets devices under its own brand and also manufactures for the white label of the El Corte Inglés, Carrefour and Auchan Group.
Dryers, televisions and mobiles collect sales
The so-called White Line is emerging as a segment in growth and in constant evolution. According to the CESCE report, the 2018 data show sales for this segment of 1,721 million euros (+ 7.23%), a growth figure much better than that recorded in previous years, when it was around 3%. On the other hand, the increase in the volume of units sold was 5.2% and exceeded 7.1 million devices.
By products, the dryer It was the one with the greatest increase in sales, 18.2%, although it is a small household appliance in our country and, as a consequence, with great margin and growth potential. Other appliances, such as ovens and bells, also recorded significant increases of 10%.
As for consumer electronics, the segment returned to recover the positive path in 2018, with sales of 1,437 million euros and a growth of 2.44%, after the decrease of 2.57% lived in 2017.
The merit of this rebound in sales in Spain for this subgroup was taken by televisions, which already account for 75% of total consumer electronics worldwide. This is the product that saw its sales grow the most, 72% in the case of LCDs and 3.5% in the case of LEDs. Other products that also obtained positive figures in 2018 were the complements of televisions, such as sound bars, stands, speakers and docking The rest of the products in the range saw their sales decrease one more year, including all categories related to plasmas, DVDs and camcorders.
According to data collected in the CESCE report, The world television market grew by 5% and reached sales of more than 100,000 million euros in 2018, with a similar evolution in the Spanish market. Factors such as the World Cup in Russia, the expansion of 4K technology and on-demand television have triggered sales, especially, of large models. By leading brands, Samsung leads the market with a 26.6% share. In addition, you have to highlight the arrival, in 2019, of two Chinese giants: TCL and Xiaomi. According to report data, LG represents 13.75% of the market; Sony, 13.50%; Philips, 4.69%; Panasonic, 4.04%; Vestel, 3.69%, and Apple, 2.35%.
The second group of appliances for billing is occupied by the domestic telecommunications, with sales of 1,667 million euros and the largest increase in the electro-household sector, with an increase of 10.3%. Within this segment, portable modems showed the best performance, reflecting the connectivity and mobility needs demanded by consumers. The same positive trend has followed the wearables (+ 38%) and smartphones that continue to grow steadily (+ 11.2%) and that they are renewed forced by their, increasingly fast, obsolescence.
As for the small appliances, the rise of television competitions focused on the kitchen has allowed all the appliances related to it to grow annually. Thus, in 2018, bakeries have increased their sales by 40%, grills by 13.5%, kitchen robots by 11% and fun cooking 11%
Refering to home computing, in 2018 it continued to grow although in a more discreet way, 1.48%, until reaching 1,576 million euros. This sector carries three consecutive years of increases that do not reach 2%, an increase that reflects a certain stagnation of the PC market. This highlights the tendency of users to extend the life of computers. In fact, the latest data provided by the leading multinational in processors, Intel, explain that, compared to an average update of the four-year equipment, we have spent six years, a space of time, which slows the sales of this segment.