Professional Documents
Culture Documents
Kenan Mirzayev
Dawid Lis
Spis treci
1.
Introduction.......................................................................................................... 3
2.
Indicators.............................................................................................................. 4
3.
2.1.
2.1.
Chosen indicators........................................................................................... 5
Countries.............................................................................................................. 7
3.1.
3.2.
Chosen countries.......................................................................................... 10
4.
5.
Russia........................................................................................................... 18
5.2.
Brazil............................................................................................................ 19
5.3.
South Africa.................................................................................................. 20
5.4.
Egypt............................................................................................................ 22
5.5.
India............................................................................................................. 23
5.6.
Japan............................................................................................................ 24
5.7.
United Kingdom............................................................................................ 26
5.8.
Colombia...................................................................................................... 27
5.9.
Spain............................................................................................................ 29
6.
Research results................................................................................................. 31
7.
Summary............................................................................................................ 33
8.
Table of figures.................................................................................................... 34
1. Introduction
In this project we had been asked to propose and then choose countries suitable to
open dishwasher manufacturing facility. We decided to first prepare countries we
would like to run our new business and then define indicators which allow us to
make right decision. From broad list of both indicators and countries, we picked
those, we thought are most appropriate ones.
As a next step we analyzed reports on dishwasher markets in countries chosen that
we found in Euromonitor database. Basing on data provided in those report we
assessed scores used later on to pick the most appropriate country.
For countries and indicators chosen we gathered data for last 5 years. Each indicator
was weighted so as market report and weighted score for each country was
calculated.
Whole research was based on Euromonitor database as it provided us all necessary
data, which was also up to date.
2. Indicators
2.1. List of proposed indicators
Table 1 List of proposed indicators
ID
1.
Indicator name
GDP
2.
GINI Index
3.
4.
5.
6.
7.
CIT value
8.
9.
Household appliance
expenditures
1
0.
Land prices
Description
It indicates how much economy produces. It is
one of most important factors for any business.
It shows how income is distributed within a
country. Countries with high GINI index may not
be a good choice because it can mean that we
may not find too much customers.
To run dishwasher both electricity and water is
needed. Markets with low rate of access to those
resources can be a poor choose.
Indicates how expensive transportation in
country is. Merchandise such as dishwasher are
mostly transported via road infrastructure.
It is important factor because the bigger the
household is, the more they need appliances
such as dishwasher.
Indicates how much it will cost to hire workers,
management staff. It will also somehow indicate
how rich society is and how much can they
spend on our products.
It indicates how much tax we will have to pay for
our sales. The lesser CIT is the more we will earn
(if other indicators are the same)
Both resources are needed to run a dishwasher
so if their prices are too high (especially
electricity as studies shows that dishwashers
are less water consuming that regular, hand
washing) people may not be optimistic about
buying our product. Also in production process
electricity is used so the cheaper it is the lower
our costs are.
It shows how much, on average, family spends
on household appliance (such as dishwasher)
every year. The more they spend the better
customer they can potentially become.
If we want to open a factory we have to take into
consideration buying or leasing a ground for this
facility. Since leasing seems unprofitable
(considering that factory is rather long-term
4
1
1.
Steel prices
1
2.
Highways density
1
3.
Corrupcy rate
1
4.
Number of universities
1
5.
Interest rates
1
6.
Possession of dishwashers
Chosen indicators
ID
1.
Indicator name
GINI Index
2.
Access to water
3.
4.
Description
It shows how income is distributed within a
country. Countries with high GINI index may not
be a good choice because it can mean that we
may not find too much customers.
To run dishwasher both electricity and water is
needed. Markets with low rate of access to
those resources can be a poor choose.
Indicates how expensive transportation in
country is. Merchandise such as dishwasher are
mostly transported via road infrastructure.
It is important factor because the bigger the
household is, the more they need appliances
5
5.
6.
Household appliance
expenditures
7.
Possession of dishwashers
such as dishwasher.
Indicates how much it will cost to hire workers,
management staff. It will also somehow indicate
how rich society is and how much can they
spend on our products.
It shows how much, on average, family spends
on household appliance (such as dishwasher)
every year. The more they spend the better
customer they can potentially become.
Indicates how many households already
possess a dishwasher. It define how many
potential customers we will find in given
country
3. Countries
3.1. List of proposed countries:
Table 3 List of proposed countries
ID
1.
Country
Russia
Description
Workforce is rather cheap there but high
corruption and not that stable political situation
may be dangerous. Depending on location there
may be troubles with access to water and
electricity.
Brazil is one of the four largest developing
economies in the world. There are no
restrictions imposed by the government for
foreigners buying land and property in Brazil.
This ensures the respect of the terms of
contracts and the rights of foreign investors.
Property ownership is 100% freehold and
secure.
2.
Brazil
3.
South Africa
4.
Columbia
5.
Egypt
6.
India
7.
France
8.
Japan
9.
Argentina
10
.
United Kingdom
11
.
Indonesia
12
.
Somalia
13
.
Nigeria
14
.
Philippines
15
.
Algeria
16
.
Ukraine
Central Asia.
Distinguishing proof is even needed for the
littlest buys, for example, staple goods. Swelling
is additionally an alternate significant issue in
Venezuela. Yearly swelling for the 12-month
period through September totaled 26.5 percent,
demonstrating the nation's economy could be
escaping from control.
18 Libya
Libya's DTF score was 33. what's more,
.
positioned 188 in simplicity of business. Its
most minimal scores were for managing
development grants, determining indebtedness,
enlisting property, securing minority financial
specialists
19 The Central African
The Central African Republic earned a DTF score
.
Republic
of 34.47 and simplicity of doing business rank
of 187. Issue ranges incorporate beginning a
business, getting power, exchanging crosswise
over fringes and paying expenses.
20 Spain
The Spanish market represents a quarter of the
.
euro zone, with 47 million consumers. The fiscal
pressure is below average in the UE-27 and the
Euro zone with one of the lowest taxes (IVA) of
the UE. It has a very interesting reduction
system of income tax for businesses which
results in an effective tax of 16.7%.
SOURCE: OWN ELABORATION BASED ON DATA FROM EUROMONITOR
17
.
Venezuela
I
D
1
.
Country
Description
Russia
2
.
Brazil
secure.
3
.
South Africa
4
.
Columbia
5
.
Egypt
6
.
India
7
.
Japan
8
.
United Kingdom
9
.
Spain
12
ID
1.
2.
3.
4.
3.
Indicator name
GINI Index
Access to water
Price per 10 Litres of Diesel
Average size of household
Wage per Hour in
Manufacturing
6.
Household appliance
expenditures
7.
Possession of Dishwasher % of households
South Africa
ID
1.
2.
3.
4.
3.
6.
7.
Indicator name
GINI Index
Access to water
Price per 10 Litres of Diesel
Average size of household
Wage per Hour in
Manufacturing
Household appliance
expenditures
Possession of Dishwasher % of households
2014
42.2
81.3
9.6
2.6
5.9
2013
42.1
80.8
8.6
2.6
5.1
2012
42
79.9
7.8
2.6
4.5
2011
41.7
78.9
6.9
2.6
3.8
2010
42.1
78
5.1
2.6
3.3
2009
42.1
78
4.9
2.6
2.9
10,171
9,710
9,368
8,577
7,718
6,232
5.6
5.3
2014
63.6
75.4
13.2
3.5
3.8
2013
63.6
74.1
12.4
3.5
3.6
2012
63.6
72.8
11.5
3.6
3.5
2011
63.6
71.5
9.1
3.6
3
2010
63.6
70.3
6.8
3.6
2.8
2009
63.6
69.2
6.2
3.6
2.6
1,734
1,659
1,579
1,487
1,396
1,337
7.2
6.8
7.1
6.7
6.1
5.6
13
Egypt
ID
1.
2.
3.
4.
3.
6.
7.
Indicator name
GINI Index
Access to water
Price per 10 Litres of Diesel
Average size of household
Wage per Hour in
Manufacturing
Household appliance
expenditures
Possession of Dishwasher % of households
2014
36.7
95.9
1.9
3.8
1.2
2013
36.7
95.8
1.9
3.8
1.2
2012
36.6
95.6
1.5
3.9
1
2011
36.5
95.5
1.6
3.9
0.9
2010
36.3
95.3
1.5
3.9
0.9
2009
36.2
95.1
1.1
4
0.7
1,933
1,649
1,150
879
602
424
2.6
2.5
2.3
2.2
1.8
Indicator name
GINI Index
Access to water
Price per 10 Litres of Diesel
Average size of household
Wage per Hour in
Manufacturing
Household appliance
expenditures
Possession of Dishwasher % of households
2014
49.5
95.5
9.1
3.3
3.4
2013
49.7
95.1
8.9
3.3
3.5
2012
50
94.7
8.5
3.3
3.2
2011
50.1
94.2
7.7
3.4
2.9
2010
50.5
93.6
8.5
3.4
2.7
2009
50.9
93
6.3
3.4
2.5
18,202
17,492
16,379
15,634
14,744
13,525
4.7
4.5
4.4
4.2
3.8
Brazil
ID
1.
2.
3.
4.
3.
6.
7.
14
Japan
ID
1.
2.
3.
4.
3.
6.
7.
Indicator name
GINI Index
Access to water
Price per 10 Litres of Diesel
Average size of household
Wage per Hour in
Manufacturing
Household appliance
expenditures
Possession of Dishwasher % of households
2014
35.1
99.8
13.4
2.4
20
2013
34.8
99.7
12.8
2.4
19.4
2012
34.8
99.7
12
2.4
19.2
2011
34.6
99.7
11.9
2.4
19
2010
34.2
99.7
10.7
2.5
18.7
2009
34.6
99.7
9.8
2.5
18.5
29,189
28,834
28,254
28,459
31,720
27,971
23.2
22.7
22.3
21.9
21.4
21
2014
41.0
48.5
7.7
4.8
0.7
2013
40.6
47.2
7.9
4.8
0.7
2012
40.2
46.0
7.5
4.9
0.6
2011
39.9
45.0
6.4
4.9
0.6
2010
39.5
44.0
6.1
5
0.6
2009
39.3
43.1
5.2
5
0.5
11,150
9,611
8,670
8,543
7,747
5,997
0.3
0.3
0.3
0.3
0.2
0.2
India
ID
1.
2.
3.
4.
3.
6.
7.
Indicator name
GINI Index
Access to water
Price per 10 Litres of Diesel
Average size of household
Wage per Hour in
Manufacturing
Household appliance
expenditures
Possession of Dishwasher % of households
United Kingdom
15
ID
1.
2.
3.
4.
3.
6.
7.
Indicator name
GINI Index
Access to water
Price per 10 Litres of Diesel
Average size of household
Wage per Hour in
Manufacturing
Household appliance
expenditures
Possession of Dishwasher % of households
2014
34.2
99.9
22.5
2.4
25.3
2013
34
99.9
23.1
2.4
25
2012
33
99.9
23.4
2.4
24.5
2011
35.3
99.9
22.9
2.4
24.1
2010
34.4
99.9
19.6
2.4
23.7
2009
33.5
99.9
17.1
2.4
22.7
12,175
11,901
11,966
12,158
12,121
9,854
43.6
42.8
42
41
40
39
Colombia
ID
1.
2.
3.
4.
Indicator name
GINI Index
Access to water
Price per 10 Litres of Diesel
Average size of household
2014
53.3
90.5
11.7
3.8
2013
53.9
89.8
10.9
3.8
2012
53.9
89
10.6
3.8
2011
54.8
88.4
9.8
3.8
2010
56
87.7
9
3.8
2009
55.7
87.2
5.6
3.9
3.
2.4
2.4
2.4
2.4
2.4
2.2
1,618
1,506
1,399
1,284
1,139
1,007
3.5
3.3
3.1
2.9
2.7
2.5
6.
7.
Spain
16
ID
1.
2.
3.
4.
3.
6.
7.
Indicator name
GINI Index
Access to water
Price per 10 Litres of Diesel
Average size of household
Wage per Hour in
Manufacturing
Household appliance
expenditures
Possession of Dishwasher % of households
2014
37
99.8
17.7
2.5
21.8
2013
36.9
99.7
18
2.5
21.3
2012
36.9
99.7
18.1
2.6
21
2011
36.7
99.7
16.8
2.6
20.6
2010
36.5
99.6
14.2
2.6
20.1
2009
36.9
99.6
12.1
2.6
19.8
6,330
6,305.7
6,502
6,675
6,745
6,672
48
47.2
46.3
45.4
44.4
43.3
17
General trends
Dishwasher was the fastest developing category of major household appliances in
Russia. Most of Russian households is already equipped with most important
appliances such as washing machines and cookers so we can assume that right now
they will focus on dishwasher market. Another reason may be increased marketing
activity of current manufacturers.
The average price of dishwasher in Russia is about 19,000 RUB and it havent
changed last year possibly because of high competition in the market.
Important factor, worth considering is increasing availability of consumer loans. It
leads Russians to both changing their living places (and buying all needed
appliances for new ones dishwashers included) or simply buying dishwashers for
their current houses. It is important that in bigger cities flats are rather small so size
of dishwasher will matter for customers.
Competition
Biggest potential competitor will be BSH with 49% market share. It owns well-known
brands Bosh and Siemens. According to Euromonitors report Second important
competitor would be Indesit with 13% of market share.
% retail volume
2010
2011
2012
2013
2014
47.8
13.6
7.4
3.3
1.8
1.3
0.9
0.6
0.2
23.0
48.8
13.4
7.3
3.4
1.9
1.4
0.9
0.6
0.2
22.0
5.2. Brazil2
Important facts:
-
General trends
Brazil may be hard market to access because of cultural reasons. Hand washing is
considered as important duty of every housewife in Brazil. Also Brazilian society is
rather suspicious about new technology and dishwasher is considered as one there.
People in Brazil still thinks that dishwasher uses more water than hand washing, but
awareness is increasing.
Although there was a growth in sales, it was much lower than it was forecasted. One
of reasons may be still relatively high unit price. To overcome this difficulty
competitors are trying to design more affordable products which leads to opening
local factories instead of importing dishwashers from other places.
Since unit price is rather high, dishwasher are affordable almost only for higher
income households. Those households very often hire maids to take care of house
duties though. This may be the reason for this lower growth of sales volume
observed.
Competition
2 Section based on Dishwashers in Brazil Report (16 Jan 2015, Euromonitor)
19
If Brazil would be chosen as a place to create the factory, we would have to face two
main competitors. The first one is Whirpool SA with 38% of market share. Its two
main products, Brastemp and Consul are respectively on first and fourth positions in
terms of sales volume. Second serious competitor would be Electrolux do Brasil SA
with almost 33% of market share with only one brand Electrolux.
% retail volume
2010
Whirlpool SA
35.7
Electrolux do Brasil SA
22.9
Mabe Eletrodomsticos SA
9.5
Multibrs SA Eletrodomsticos
BSH Continental Eletrodomsticos Ltda
Others
31.9
SOURCE: EUROMONITOR DISHWASHERS MARKET IN BRAZIL
2011
2012
2013
2014
28.0
26.6
3.9
41.5
33.9
29.8
3.3
32.9
37.1
32.5
3.2
27.2
38.1
32.7
3.1
26.1
General trends
Since dishwashers are still considered as luxury good in South Africa and hand
washing is the most popular method, our target would be upper-medium to higher
class. We still need to remember that members of those classes frequently employs
local workers to maintain their houses because of low costs of low educated labor.
Typical use pattern for those who actually owns a dishwasher is to wait as long as
they will be able to load full machine and use it then.
Most of sold dishwashers were freestanding ones (99% of total sales), so if we
choose South Africa we should focus on this type of machines. Also new trends were
witnessed among consumers. They tend to choose so called smart dishwashers. As
3 Section based on Dishwashers in South Africa Report (24 Mar 2014, Euromonitor)
20
smart dishwasher we understand ones that e.g. adjust water volume and
temperature to load of the dishwasher. Consumers also pay big attention to noise
created by machines.
Competition
There are four main players in dishwasher market in South Africa right now. The
biggest one is LG Electronics SA with 23% of market share. Next three have almost
the same market share, where: BSH Home Appliances Corp Ltd has 16%, Defy
Appliances Ltd has 15% and Electrolux SA Ltd has 14%. Three first companies based
only on one brand while Electrolux introduced 2 brands.
% retail volume
2009
2010
2011
2012
2013
23.0
16.4
15.5
13.6
9.6
9.3
12.6
23.2
16.6
15.7
13.8
9.7
9.5
11.6
5.4. Egypt4
Important facts:
-
General Trends
4 Section based on Dishwashers in Egypt Report (15 Jan 2015, Euromonitor)
21
Competition
Local company Fresh Electric Co is expected to to keep up its driving position in
dishwashers Egypt during 2014 with a market volume share of 59%. However 2014
has been a fascinating year for dishwashers in Egypt as working in the classification
recorded positive development.. Local brands remain very popular
in dishwashers in Egypt. This is truly a surprising situation in a major appliances
category.
% retail
volume
Company
201
1
201
2
201
3
201
4
Fresh
Ideal Zanussi
White Whale
HotpointAriston
Siemens
Fresh Electric Co
Olympic Group SAE
White Whale Co
Ariston Egypt
63.0
6.1
6.1
6.9
61.0
7.7
6.3
6.8
60.2
8.5
6.5
6.7
59.0
8.9
6.6
6.5
5.8
6.0
6.1
2.2
10.2
2.4
9.6
2.5
10.4
5.5. India5
Important Facts
5 Section based on Dishwashers in India Report (12 Mar 2014, Euromonitor)
22
General Trends
Dishwashers displayed volume growth of 16% in 2013, making this the best
performing category in major appliances. Additionally, the classification's volume
development in 2013 was all that much on a standard with its survey period normal.
It was partly also due to its very low sales base in India. Dishwashers increased
some popularity over the review period however their achieve kept on being
restricted to rich buyers in urban zones like New Delhi, Mumbai, Chennai and
Bangalore. Dishwashers were valued at over 480$ every unit, which meant they
were unaffordable to most consumers in small towns and rural areas.
The widespread availability of housemaids and cheap labour is the primary reason
for the low penetration of dishwashers in India. Furthermore, an erratic supply of
water and electricity, even in metropolitan areas, has hindered the growth
of dishwashers. Indian cooking uses a high measure of oil and other sticky
ingredients. This makes the dishes harder for dishwashers to clean thus they have to
be flushed independently before being stacked into the dishwasher
Full-sized dishwashers kept on leading in 2013, representing a 93% offer of volume
deals. The remaining 7% was represented by slimline models. Compared to the West
and other parts of the developed world, there were hardly any sales of minimized or
table-top dishwashers in India. This was because the Indian market remained
immature.
Competition
-
% retail volume
2009
2010
2011
2012
2013
52.1
9.0
50.6
10.0
51.0
11.0
51.5
10.8
51.8
11.1
23
8.9
9.5
20.4
8.4
9.3
21.6
9.0
9.0
20.0
8.6
8.7
2.5
17.9
8.2
8.1
2.8
18.1
INDIA
5.6. Japan6
Important Facts
-
General Trends
As Japanese consumers are very conscious about energy and water use for
appliances, they keep looking for energy-efficient dishwasher models that use less
water. In Japan, households are charged by the exact amount of utilities used, which
can be rather expensive, so it is vital for producers to keep on providing more
efficient models. In Japan, 75% of dishwashers are built-in. However
freestanding dishwashers are common and this is because the size of a kitchen
in Japan is very small and these freestanding options can be placed next to a sink
without taking up much space. The main consumer target for freestanding
dishwashers are dual-income households who have less time but more disposable
income.
Table-top dishwashers remained the most famous format in dishwashers in 2014,
with a 28% volume share. The expanding number of ladies in the workforce drove
interest for the format, especially among customers searching for the most
affordable and easy-to-install option in dishwashers.
Competition
Panasonic Corp accounted for 71% of volume sales in 2014. The leading player
pioneered the market in 1960 and is dominant in built-in dishwashers and, with
Zojirushis exit, is the only player in freestanding. Rinnai remained the second
largest player in dishwashers in 2014, with a 20% volume share. The company is a
heating appliances manufacturer specialising in built-in dishwashers.
6 Section based on Dishwashers in Japan Report (18 Feb 2015, Euromonitor)
24
In Japan, there is no foreign competition as these players face difficulties not only
with recognition from Japanese consumers for quality but also with home builders
and contractors.
% retail
volume
Company
Panasonic
Rinnai
Mitsubishi
Zojirushi
Toshiba
Hitachi
Hitachi
National
201
1
Panasonic Corp
57.8
Rinnai Corp
21.2
Mitsubishi Electric Corp
1.0
Zojirushi Corp
6.8
Toshiba Corp
5.8
Hitachi Appliances Inc
Hitachi Home & Life Solutions Inc
Matsushita Electric Industrial Co
Ltd
Sanyo
Sanyo Electric Co Ltd
Sharp
Sharp Corp
Toto
Toto Ltd
Private label
Private Label
Others
Others
7.3
SOURCE: EUROMONITOR DISHWASHERS MARKET SHARE IN JAPAN
201
2
201
3
201
4
57.5
20.3
0.9
6.5
5.6
-
67.3
20.9
1.0
3.1
-
70.9
20.3
1.0
-
9.1
7.8
7.8
General Trends
A languid housing market in the UK had a positive effect on the overall performance
7 Section based on Dishwashers in United Kingdom Report (14 Mar 2014,
Euromonitor)
25
Competition
The competitive landscape within dishwashers in the UK is mainly made up of
international key players. BSH Home Appliances Ltd maintained its number one
position in dishwashers with an overall retail volume share of 29% in 2013.
Electrolux UK Ltd ranked second with a total retail volume share of 19%, followed by
Indesit Co UK Ltd with a total retail volume share of 15% in 2013. Each having a
wide brand portfolios and a good command of technology leading to innovation
allows these manufacturers to maintain their leading positions within dishwashers in
the UK.
% retail volume
Company
2010
2011
2012
2013
Bosch
Beko
ZanussiElectrolux
Hotpoint
Whirlpool
Hoover
Siemens
Indesit
Neff
Electrolux
AEG-Electrolux
Candy
22.8
11.8
12.1
22.3
12.6
12.4
22.4
13.1
12.5
22.5
13.5
12.6
Indesit Co UK Ltd
Whirlpool UK Ltd
Hoover Ltd
BSH Home Appliances Ltd
Indesit Co UK Ltd
BSH Home Appliances Ltd
Electrolux UK Ltd
Electrolux UK Ltd
Candy Domestic Appliances
13.4
4.7
3.7
3.5
5.8
3.0
3.2
2.7
1.3
12.7
4.7
3.6
3.4
3.4
3.0
3.1
2.7
1.3
12.1
4.7
3.6
3.4
3.3
3.1
3.2
2.7
1.2
12.0
4.5
3.5
3.4
3.2
3.2
3.2
2.6
1.2
26
Ltd
Tricity Bendix
Electrolux UK Ltd
Private label
Private Label
0.8
0.8
Others
Others
11.1 13.9
SOURCE: EUROMONITOR DISHWASHERS MARKET SHARE IN UNITED KINGDOM
0.8
13.9
0.7
13.8
5.8. Colombia8
Important Facts
-
General Trends
Right now in Columbia, manufacturers offers only built in dishwashers. It is
connected with culture of hand washing. Right now in Columbia, liquid detergents
are still considered as revolutionary technology. Huge percent of citizens still uses
soap for doing the dishes. High prices results with only one type of customer high
income families building new homes or possibly renovating current kitchens. Also
house sizes in Columbia are rather low so citizens which results with more attention
paid to usage of free space.
Most of sold dishwasher are standard sized. Average family size tends to decrease,
so bigger dishwashers thats needs more time to work efficiently has no use there.
Competition
Right now the biggest player is Whirpool Columbia SA with over 34% of market
share. Whirpools owe its high position to control of most sales channel in country
and also competitive prices. Second competitor is Mabe de Columbia SA with almost
30% of market share. It is also worth noting that third, in terms of sales volume,
Electrolux Home Products France SA, with 20% of market share right now, noted
over 100% growth in market share during last 5 years.
% retail volume
Whirlpool Colombia SA
Mabe de Colombia SA
Electrolux Home Products France SA
Challenger SAS
Industrias HACEB SA
Others
SOURCE: EUROMONITOR DISHWASHERS MARKET
2010
2011
44.7
43.8
29.8
21.0
9.8
22.6
11.9
8.4
3.8
4.3
IN COLUMBIA
2012
2013
2014
46.6
16.6
18.6
5.9
7.5
4.8
35.1
27.2
20.6
6.0
5.0
6.1
34.3
28.3
20.4
6.1
4.9
6.0
5.9. Spain9
Important Facts
-
General Trends
After several years of falling-off, 2014 saw the positive development of dishwashers.
Rising interest mirrors the improvements being seen in the Spanish economy.
Spaniards are recapturing certainty and buying force, finally making some of the big
ticket purchases that they had postponed during the review period. During 2014
producers presented a series of innovations that helped to introduce dynamism to
the dishwashers category. New dishwashers are equipped with smart systems that
reduce water and energy consumption by targeting washing power exactly where
indicated by the user. Energy efficiency is becoming an important issue for Spanish
consumers, especially given that energy prices increased notably in the second half
of the review period.
Full size dishwashers represent 62% of volume sales. Slimline take after with a 25%
and this category registered the strongest volume development in 2014, with a
ascent of 7%.
Competiton
BSH Electrodomsticos Espaa SA strengthened its position as category leader in
2014, with a 34% volume share. Sales were supported by the strong reputation for
high quality of its brands among the Spanish population. Indesit Electrodomsticos
9 Section based on Dishwashers in Spain Report (06 Feb 2015, Euromonitor)
28
SA also registered a strong performance, with sales rising by 17% in 2014, to result
in a 7% volume share. The Italian company managed to improve its position in the
Spanish market by reinforcing its image of offering an affordable brand with good
technical performance.
% retail volume
Bosch
Company
201
1
201
2
201
3
201
4
15.3
15.3
16.9
12.0
11.6
12.1
10.4
6.2
10.1
6.3
7.0
6.7
5.3
5.3
5.6
5.1
5.4
5.0
5.1
5.6
5.2
4.6
5.0
4.6
5.0
5.1
4.9
29
6. Research results
Results of analysis are presented in two tables below. First presents data on chosen indicators in chosen countries for
2014. Second table introduces weights for each indicator and presents results of each country.
Table 14 Indicators in countries in 2014
SOURCE: OWN ELABORATION BASED ON DATA FROM EUROMONITOR
Indicator name
RUSSIA
BRAZIL
COLOMBI
A
EGYPT
SPAIN
53.3
90.5
11.7
SOUTH
AFRIC
A
63.6
75.4
13.2
JAPAN
INDIA
37
99.8
17.7
UNITED
KINGDO
M
34.2
99.9
22.5
GINI Index
Access to water
Price per 10
Litres of Diesel
Average size of
household
Wage per Hour
in
Manufacturing
Household
appliance
expenditures
Possession of
Dishwasher - %
of households
42.2
81.3
9.6
49.5
95.5
9.1
36.7
95.9
1.9
35.1
99.8
13.4
41.0
48.5
7.7
2.6
3.3
3.8
3.5
3.8
2.5
2.4
2.4
4.8
5.9
3.4
2.4
3.8
1.2
21.8
25.3
20
0.7
10,171
18,202
1,618
1,734
1,933
6,330
12,175
29,189
11,150
5.6
4.7
3.5
7.2
2.6
48
43.6
23.2
0.3
EGYPT
SPAIN
UNITED
KINGD
OM
JAPAN
INDIA
8
6
4
7
9
9
7
7
5
1
We Indicator
igh name
t
RUSSIA
BRAZIL
COLOMB
IA
0,1
0,1
6
3
2
5
3
4
GINI Index
Access to
SOUT
H
AFRIC
A
1
2
30
water
0,0 Price per 10
6
5
Litres of
Diesel
0,0 Average size
4
5
of household
0,1 Wage per
4
5
Hour in
Manufacturin
g
0,1 Household
5
appliance
expenditures
0,1 Possession
5
5
of
Dishwasher % of
households
0,3 Market
8
report result
WEIGHTED
0,627
SCORE
SOURCE: OWN ELABORATION
0,633
0,522
0,361
0,611
0,444
0,505
0,411
0,761
31
7. Summary
Basing on both on indicator chosen and market research the best country, from
analyzed ones, would be India. Even though only half of the households has access
to water its still leaves about 600 million of potential customers, because right now
only 0.3% of households possess a dishwasher. It was the lowest value of all
analyzed countries. It may seem as there is just no need for dishwashers in India,
but market research showed that during last year there was a 16% of growth in
dishwasher sales. This shows that there is growing demand for such appliances,
even though most of small town and rural areas citizens still cannot afford
dishwasher. With growing salaries (10% in 2014 10) and water and electricity
accessibility it may be the best moment to enter Indian market. There is one
dominant manufacturer right now with over 50% of market share (IFB Industries Ltd)
and rest of competitors dont exceed 10% of market share, so there is still place for
new players. Income distributions is still acceptable with Indian GINI Index set at 41,
so only 6 points worse than e.g. United Kingdom (and over 20 points better than
analyzed South Africa).
As it comes to costs of operating in India, it was also one of the lowest from
countries analyzed. Both costs of labor (average price for one hour in
manufacturing) and diesel fuel (showing cost of transportation) was lowest (labor
was lowest and diesel cost was third to lowest). India citizens tends to spend quite a
lot on household appliances, basing on their income.
We need to take into consideration downsides of manufacturing and selling in India.
For example maids position in India. They are still very popular in families able to
afford them. This factor may influence demand for dishwasher. When combined with
character of Indian cuisine (heavy on oil and other sticky ingredients) that needs
also more advanced (and expensive) detergents it may seem just too expensive. We
can work this around though, by e.g. setting lower prices on our products (which is
possible to low costs of labor and oil).
10 Source: http://www.india-briefing.com/news/average-indian-salary-to-increase-by10-percent-in-2014-7933.html/
32
8. Table of figures
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
Table
33