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Make a decision on location of a

new plant for manufacturing


household appliances
(dishwashers).

Kenan Mirzayev
Dawid Lis

Spis treci
1.

Introduction.......................................................................................................... 3

2.

Indicators.............................................................................................................. 4

3.

2.1.

List of proposed indicators.............................................................................. 4

2.1.

Chosen indicators........................................................................................... 5

Countries.............................................................................................................. 7
3.1.

List of proposed countries:............................................................................. 7

3.2.

Chosen countries.......................................................................................... 10

4.

Indicators value in choosen countries (2009-2014)............................................13

5.

Brief dishwasher market description in chosen countries...................................18


5.1.

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.

Access to electricity, water

4.

Price per 10 litres of Diesel

5.

Average size of household

6.

Wage per hour in


manufacturing

7.

CIT value

8.

Average water / electricity


prices

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

investment), land price is really important factor


for us.
Since dishwasher are made mostly from steel, its
price is important factor. The less it costs in
chosen country the less it will cost us to create
the product and the more competitive we can
become (potential export).
Similar to diesel prices. Since we plan to
transport products with trucks, number of
highways is important indicator. Highways are
safer, faster, cheaper (they dont deprecate
trucks as fast as regular roads) than regular
local, roads.
On one hand if the country is corrupted we can
use it for our advantage. On the other hand it is
never safe to operate in a country with high level
of corruption.
As we plan to invest in R&D, university
graduates will also be taken into consideration
as our employees. So the more universities in a
country, the higher the number of graduates.
Price of money is always an important indicator
for investors. It indicates ex. how much bank
loans costs in given country.
Indicates how many households already possess
a dishwasher. It define how many potential
customers we will find in given country

SOURCE: OWN ELABORATION

Chosen indicators

Table 2 List of chosen indicators

ID
1.

Indicator name
GINI Index

2.

Access to water

3.

Price per 10 litres of Diesel

4.

Average size of household

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.

Wage per hour in


manufacturing

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

SOURCE: OWN ELABORATION

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

One of the main reasons for South Africa


becoming one of the most popular trade and
investment destinations in the world is due to
the country ensuring that it can meet specific
trade and investment requirements of
prospective investors.

4.

Columbia

the country reached the fifth place in Direct


Foreign Investment in the world, according to
the United Nations Conference for Commerce
and Development. Investment grew from $6.8
million USD in 2010 to $13.234 million USD in
2011,

5.

Egypt

The country is in a geographically strategic


location. Moreover, it offers a cheap and
relatively qualified labor force. Its growing
population constitutes a non-negligible market
in the region. the government policy for large
scale liberalization and improving the appeal to
foreign investors are encouraging signs for
foreign investment.

6.

India

India is one of the hottest economies on the


planet and holds tremendous profit potential for
investorsIndias economy is growing at a 9%
rate, TEN times faster than the U.S. and only a
couple of percentage points behind China.

7.

France

8.

Japan

At the moment you procure workers, it can get


to be exceptionally costly, especially the social
charges; however normal compensations are
normally lower in France than e.g. the UK;
Company organization can get complex once
you procure representatives, and they are
agreed solid rights.
Business is booming. Large manufacturers are
operating at near-full capacity. And yet
economic forecasters are consistently
underestimating the speed of the recovery. In
April, machinery orders were expected to grow
by 3.5% - the actual figure was 10.8%.

9.

Argentina

10
.

United Kingdom

11
.

Indonesia

Argentina is one of three South American


countries to make the rundown of the most
exceedingly awful nations to make an
investment.
Out of 10 key pointers for working together,
Argentina has one of the most reduced rankings
concerning securing a development grant. It
takes around one year to get a development
grant, contrasted and a normal of around seven
months for Latin American nations and the
Caribbean.
The easiest place to establish and run a
business is Europe: According to a World Bank
study, it takes only 13 days to establish a
business in the UK. The World Bank has ranked
the UK first in Europe and sixth in the world to
operate business. the UK is known for its quality
research base and ranks second on the list of
most productive places for innovation.
Indonesia, Southeast Asia's greatest economy,
is one of three Asian nations to make the
rundown of the world's most noticeably bad
places to work together in. The nation is a
standout amongst the most troublesome spots
to begin a business. It takes one and half
months to dispatch a business in Indonesia,
about three and half times longer than the
8

12
.

Somalia

13
.

Nigeria

14
.

Philippines

15
.

Algeria

16
.

Ukraine

normal for all OECD nations. Getting electricity


on the planet's fourth most crowded country
likewise takes 20 days longer than in whatever
is left of East Asia and the Pacific.
Despite the fact that workforce is truly cheap in
Somalia, flimsy political circumstance settles on
it poor decision. Likewise access to water and
power is restricted. Transport framework is
likewise undeveloped.
Political turmoil and developing ethnic and
religious pressures make the nation one of the
most exceedingly terrible spots to invest in, on
the other hand. Nigeria positions among the
most reduced on the planet in terms of getting
electricity and enrolling property for business. It
takes almost three months to get past the 13
systems needed to enlist a property, contrasted
with one month in OECD nations.
Foreign organizations are careful about the
Philippine's unsteady lawful framework,
violence , and organization. Its simplicity of
working together positioning from the World
Bank fell a further two spots not long from now
from 2010. The nation additionally positions
among the most minimal in the matter of
beginning a business, and determining
indebtedness, with the recent taking more than
five and half years, contrasted and a normal
one year and seven months in OECD nations.
Algeria positions among the least on the planet
concerning beginning a business, getting
power, enlisting property, and documenting
expenses. It takes 48 days to enlist a property
in Algeria, contrasted and around a month in
the normal of OECD nations. Getting a power
association takes over five months, contrasted
and two and half months in rest of North Africa
and the Middle East.
The nation positions among the extremely base
with regards to simplicity of paying duties,
managing development allows, and access to
power, to give some examples. It takes 27 days
for organizations to pay assesses in Ukraine,
with the aggregate duty rate at more than 57
percent of an organization's benefit. The
measure of time it takes to pay duties is more
than twofold the time in Eastern Europe and
9

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

3.2. Chosen countries


Table 4 Countries chosen for deeper research

I
D
1
.

Country

Description

Russia

2
.

Brazil

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
10

secure.
3
.

South Africa

One of the main reasons for South Africa


becoming one of the most popular trade and
investment destinations in the world is due to
the country ensuring that it can meet specific
trade and investment requirements of
prospective investors.

4
.

Columbia

the country reached the fifth place in Direct


Foreign Investment in the world, according to
the United Nations Conference for Commerce
and Development. Investment grew from $6.8
million USD in 2010 to $13.234 million USD in
2011,

5
.

Egypt

The country is in a geographically strategic


location. Moreover, it offers a cheap and
relatively qualified labor force. Its growing
population constitutes a non-negligible market
in the region. the government policy for large
scale liberalization and improving the appeal to
foreign investors are encouraging signs for
foreign investment.

6
.

India

India is one of the hottest economies on the


planet and holds tremendous profit potential for
investorsIndias economy is growing at a 9%
rate, TEN times faster than the U.S. and only a
couple of percentage points behind China.

7
.

Japan

Business is booming. Large manufacturers are


operating at near-full capacity. And yet
economic forecasters are consistently
underestimating the speed of the recovery. In
April, machinery orders were expected to grow
by 3.5% - the actual figure was 10.8%.

8
.

United Kingdom

The easiest place to establish and run a


business is Europe: According to a World Bank
study, it takes only 13 days to establish a
business in the UK. The World Bank has ranked
the UK first in Europe and sixth in the world to
operate business. the UK is known for its quality
research base and ranks second on the list of
most productive places for innovation.
11

9
.

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

12

4. Indicators value in choosen countries (2009-2014)


Russia

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.

Wage per Hour in


Manufacturing
Household appliance
expenditures
Possession of Dishwasher % of households

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

5. Brief dishwasher market description in chosen


countries
5.1. Russia1
Important facts:

Sales volume grew by 17%


Sales value grew by 17%
Total volume was 879,000 Units
Total value was 16.7 billion RUB
Average price remained unchanged comparing to 2013 19,000 RUB
Biggest competitor would be BSH Bytowaja Technika with 49% of Market share

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.

Table 5 Companies dishwasher market share in Russia

% retail volume

2010

2011

2012

2013

2014

1 Section based on Dishwashers in Russia Report (20 Mar 2015, Euromonitor)


18

BSH Bytowaja Technika OOO


39.8
40.6
41.8
Indesit RUS OOO
17.4
16.6
16.1
Electrolux Major Appliances Russia
10.4
10.6
10.6
BEKO OOO
3.3
3.3
3.3
Whirlpool Russia
1.6
1.7
1.8
Haier Rus TK OOO
0.2
0.7
1.1
Miele Russia
0.8
0.9
0.9
Candy Elettrodomestici Srl
0.5
0.6
0.6
Gorenje Russia
0.1
0.2
0.2
Brandt ZAO
0.5
Others
25.4
24.8
23.6
SOURCE: EUROMONITOR DISHWASHERS MARKET IN RUSSIA REPORT

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:
-

Sales volume increased by 28%


Total volume was 382,000 units
Unit price increased by 2% to 1,162 R$
Biggest competitor would be Whirpool with 38% of market share

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.

Table 6 Companies dishwasher market share in Brazil

% 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

5.3. South Africa3


Important facts:
-

Sales volume increased by 1%


Sales value increased by 4%
Average price unit slightly decreased
Biggest competitor would be LG Electronic SA with 23% of market share
Dishwashers are considered in South Africa as luxury, non-essential good

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.

Table 7 Companies dishwasher market share in South Africa

% retail volume

2009

2010

2011

LG Electronics SA (Pty) Ltd


20.1
17.2
23.2
BSH Home Appliances Corp (Pty) Ltd
15.8
14.5
15.3
Defy Appliances (Pty) Ltd
13.3
14.4
15.4
Electrolux SA (Pty) Ltd
15.2
14.2
15.1
Lead Household Appliances (Pty) Ltd
9.7
9.5
9.7
Whirlpool SA (Pty) Ltd
9.0
9.4
9.7
Others
16.9
20.8
11.6
SOURCE: EUROMONITOR DISHWASHERS IN SOUTH AFRICA REPORT

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:
-

Dishwashers is expected to drop in volume by 3% and in current value by 5%


during 2014
Fresh Electric Co is set to continue dominating dishwashers in 2014 with a
volume share of 59%
Egyptian buyers lean toward littler models of dishwashers as a result of little
kitchens

General Trends
4 Section based on Dishwashers in Egypt Report (15 Jan 2015, Euromonitor)
21

Small dishwashers represented the dominant part of volume deals in dishwashers in


Egypt at ,the end of the review period as the majority of Egyptian customers find
them more convenient as the kitchens in typical flats are quite small. Moreover they
also believe that smaller dishwashers help consumers save energy and water.
Majority, particularly middle-class consumers live in small apartments because of
low rents charged for these apartments. This leaves many of them with little choice
but to purchase smaller dishwashers and this is the why so many Egyptians prefer
table-top dishwashers rather than standard size dishwashers .Table-top
dishwashers are remain the most popular format in dishwashers in Egypt for 2014,
accounting for 46% of all dishwashers retail volume sales. Full-size dishwashers is
set to be the second most format, but, with a 38% volume share into the supporting.

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.

Table 8 Companies dishwasher market share in Brazil

% 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

BSH Bosch & Siemens Hausgerte


5.7
GmbH
LG
LG Electronics Egypt SAE
2.0
Others
Others
10.2
SOURCE: EUROMONITOR DISHWASHERS MARKET SHARE IN EGYPT

5.5. India5
Important Facts
5 Section based on Dishwashers in India Report (12 Mar 2014, Euromonitor)
22

In 2013 dishwashers registers retail volume development of 16% to achieve


33,630 units and current worth development of 23% to achieve offers of Rs1.1
billion Freestanding dishwashers continue to dominate, with negligible
demand for built-in formats
IFB Industries Ltd leads dishwashers in 2013 with a 52% volume share

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
-

With a 52% volume share in 2013, IFB Industries Ltd continued to


dominate dishwashers, followed by LG Electronics India Pvt Ltd with 11% and
BSH Bosch & Siemens Hausgerte GmbH and Electrolux AB with a share of 8%
each. Of the top five players in dishwashers in 2013, only IFB Industries Ltd is
a domestic company. However, it led the category because it has years of
experience in the Indian market. It understands consumers habits, lifestyles
and preferences much better than other

Table 9 Companies dishwasher market share in India

% retail volume

2009

2010

2011

2012

2013

IFB Industries Ltd


LG Electronics India Pvt Ltd

52.1
9.0

50.6
10.0

51.0
11.0

51.5
10.8

51.8
11.1
23

BSH Bosch & Siemens Hausgerte GmbH


Electrolux AB
Samsung India Electronics Pvt Ltd
Electrolux Kelvinator Ltd
Others
SOURCE: EUROMONITOR DISHWASHERS MARKET IN

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
-

Dishwashers in Japan declines by 2% in volume terms in 2014


Both freestanding and built-in dishwashers struggle in 2014
Average unit price of dishwashers slightly increases in 2014 due to tax
increase in April 2014
Panasonic retains its leading position with a 71% volume share in 2014

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.

Table 10 Companies dishwasher market share in Japan

% 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

5.7. United Kingdom7


Important Facts
-

Dishwashers in the UK registers 3% current value growth with sales worth


340 million in 2013 while retail volume growth reaches 1% with 947
thousand units sold
Built-in dishwashers registers the higher retail volume growth at 4% with 436
thousand units sold in the UK in 2013
Brand recognition enables BSH Home Appliances Ltd to lead dishwashers in
the UK with a total volume share of 29% in 2013

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

of dishwashersin 2013. Consumers have postponed their desires of moving home


for saving purposes due to the recessionary economic climate. This has brought an
expanding trend towards home improvement and redesign. As dishwashers are still
considered as luxury items in the UK, consumers have a tendency to redesign their
kitchens with more current and functional appliances, hence giving the opportunity
to overall dishwashers to grow in 2013.
Innovation inside dishwashers is no more a limitation to purchasers. On the contrary,
customers have a tendency to buy dishwashers with advanced technologies and
features for more efficiency. Electronic controls, more programmes and greater allround versatility as well as low operating noise boost the sales performance
of dishwashers in the UK. Web retailing has an effect on unit prices thanks to more
affordable premium brands. However, the average unit price of dishwashers saw an
increase in 2013, in current value terms.
In the UK, kitchens tend to be small, bringing about small size kitchen machines.
However, busy lifestyles and convenience needs helped slimline dishwashers to
grow in 2013.

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.

Table 11 Companies dishwasher market share in United Kingdom

% retail volume

Company

2010

2011

2012

2013

Bosch
Beko
ZanussiElectrolux
Hotpoint
Whirlpool
Hoover
Siemens
Indesit
Neff
Electrolux
AEG-Electrolux
Candy

BSH Home Appliances Ltd


Beko UK Ltd
Electrolux UK Ltd

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
-

Sales volume increased by 10% to 10,000 units


Dishwashers are only used in new housing only built in machines are bought
Average unit price increased by 1%
Biggest competitor would be Whirpool Columbia SA with 34% of market share

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.

8 Section based on Dishwashers in United Kingdom Report (23 Jan 2015,


Euromonitor)
27

Table 12 Companies dishwasher market share in Colombia

% 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
-

In 2014 the dishwashers category grows by 5% in volume terms


Sales are pushed upwards by a return to economic growth in Spain
BSH Electrodomsticos Espaa SA strengthens its leadership, posting a
volume share of 34%
Freestanding dishwashers account for the largest share of volume sales, at
84% in 2014

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.

Table 13 Companies dishwasher market share in Spain

% retail volume

Bosch

Company

201
1

BSH Electrodomsticos Espaa


14.9
SA
Balay
BSH Electrodomsticos Espaa
11.4
SA
Fagor
Fagor Electrodomsticos S Coop
10.0
ZanussiElectrolux Home Products
6.2
Electrolux
Espaa SA
AEG-Electrolux
Electrolux Home Products
5.2
Espaa SA
Indesit
Indesit Electrodomsticos SA
4.9
Siemens
BSH Electrodomsticos Espaa
5.6
SA
Haier
Haier Europe Trading Srl
4.5
IKEA
IKEA Ibrica SA
4.6
SOURCE: EUROMONITOR DISHWASHERS MARKET SHARE IN SPAIN

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

Table 15 Project results based on weighted score

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

1 List of proposed indicators4


2 List of chosen indicators................................................................................. 5
3 List of proposed countries............................................................................... 7
4 Countries chosen for deeper research..........................................................10
5 Companies dishwasher market share in Russia............................................18
6 Companies dishwasher market share in Brazil..............................................20
7 Companies dishwasher market share in South Africa...................................21
8 Companies dishwasher market share in Brazil..............................................22
9 Companies dishwasher market share in India...............................................24
10 Companies dishwasher market share in Japan............................................25
11 Companies dishwasher market share in United Kingdom...........................27
12 Companies dishwasher market share in Colombia......................................28
13 Companies dishwasher market share in Spain............................................29
14 Indicators in countries in 2014....................................................................31
15 Project results based on weighted score.....................................................32

33