Scale exceeds 100 billion! Another track in Southeast Asia explodes

In the 1970s, watches, sewing machines, bicycles and radios were the pursuit of every household; in the 1980s, refrigerators, color TVs and washing machines became everyone's obsession; and now, with the improvement of people's living standards, the "three big items" from more than 30 years ago have become common in every household.

Not only that, more small household appliances with diverse functions are frequently appearing, occupying an important position in all aspects of people's lives. With their small size, easy use and low energy consumption, they have become new hot-selling products in the home appliance market.

Demand often drives economic growth. Under this trend, the scale of the small household appliance market around the world, especially in Southeast Asia, has seen a huge explosion.

With an estimated revenue of 119.8 billion yuan, the scale of Southeast Asia's small home appliance market has grown explosively

In 2023, the global small household appliance market will be worth about US$243 billion (about RMB 1,732.1 billion), and it is expected to reach US$254.3 billion (about RMB 1,816.7 billion) by 2024. The compound annual growth rate of the market will remain at around 4.65% between 2024 and 2028, and will directly approach US$310 billion (about RMB 2,210.6 billion) by 2028.

China is the country with the largest production and consumption of small household appliances. The United States is the world's second largest small household appliance market, with a scale of US$29 billion (about RMB 206.7 billion) in 2023 and is expected to increase to US$36 billion (about RMB 256.7 billion) by 2029.

In addition, the scale of small household appliance market in some countries in Europe, Asia and Southeast Asia has also shown a sharp growth trend .

Take Southeast Asia for example. Its small home appliance market has shown unlimited development potential in recent years and should not be ignored. Data shows that in 2023, the overall scale of Southeast Asia's small home appliance market will be 113.4 billion yuan. It is expected that by 2024, the total revenue of the market will reach 16.88 billion US dollars (about 119.82 billion yuan), and it is still growing.

It is worth mentioning that in 2023, among the small household appliance markets in the six Southeast Asian countries of Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, the scale of Indonesia and the Philippines exceeded 20 billion yuan.

Among them, Indonesia's small home appliance market is the largest. Data shows that last year, the revenue of this market in Indonesia was about 48.6 billion yuan, accounting for 42.86% of the total revenue of this market in Southeast Asia in 2023. Some data predict that by 2028, the scale of this market in Indonesia will exceed 60 billion yuan.

The Philippines and Vietnam markets are next. It is estimated that in 2024, the revenue of the small household appliances market in the Philippines will reach US$3.069 billion, and the compound annual growth rate of the market size is expected to reach 4.19% during the period 2024-2029.

Various data show that the scale of small household appliance market in many countries and regions is constantly expanding, which also illustrates the development prospects of this market in the world.

A careful study of small household appliances reveals that, unlike traditional large appliances such as refrigerators, washing machines, televisions, etc., small household appliances can be divided into multiple categories, including kitchen, home and personal care.

Specifically, kitchen small appliances include food preparation products such as vegetable washing machines, dough mixers, blenders, etc.; food cooking products such as microwave ovens, air fryers, rice cookers, etc.; kitchen hygiene products such as dishwashers, electric kettles, tableware drying boxes, etc.

Small household appliances include environmental regulation products such as electric fans, humidifiers, electric heaters, etc.; cleaning products such as mite removers, vacuum cleaners, sweepers, etc.; life convenience products such as electric blankets, instant hot water dispensers, etc.

Personal care small appliances include hair styling products such as hair dryers, straighteners, etc.; oral care products such as water flossers, etc.; hair trimming products such as electric shavers, women's epilators, etc.; facial care products such as beauty instruments, electric facial cleansing brushes, etc.; clothing care products such as electric irons, hanging irons, etc.; and health massage products such as shoulder and neck massagers, foot baths, etc.

It is obvious from the above classification that small household appliances are diverse and cover almost every aspect of people's daily life, so the demand is huge. Thanks to this, the domestic export volume of such products has achieved rapid growth. Data shows that the export growth rate of personal care small household appliances exceeds 15%, and the export growth rate of kitchen small household appliances is also close to 15%, and the export volume in 2023 will reach US$18.2 billion.

Multiple brands continue to see explosive sales in the 100 billion yuan market

As the development prospects of the small home appliance market in Southeast Asia are getting better and better, industry insiders say it may become the next growth area for small home appliance products. Many brands have sensed this business opportunity and have entered the market in search of new opportunities for explosive sales.

In addition, with the increasing popularity of the "lazy economy" in recent years, various high-tech smart small household appliances have been very popular among the younger generation of consumers in Southeast Asia.

Dreame is one of the many small home appliance companies. Data shows that in 2023, the global sales of Dreame floor scrubbers exceeded 1.4 million units, a year-on-year increase of 100%. In different regions of the world, its performance is also particularly impressive: sales in the European market increased by 930% year-on-year, the Southeast Asian market increased by 420% year-on-year, and the North American market increased by 363% year-on-year.

It is worth mentioning that in the Thai market in Southeast Asia, its sales increased by 204% year-on-year, and in the Malaysian market, its sales increased by nearly 15 times year-on-year.

There is also a new kitchen gadget from Swiss Thomas Free Whisk & Scraper – the multi-function blender, which became popular in Malaysia some time ago.

According to the details page, the product is priced at 29.9RM (Malaysian Ringgit) and integrates multiple functions such as chopping, mixing, and grinding, and can be called an "all-round kitchen artifact." Data shows that its sales volume reached 19,000 units in the month from August 13 to September 11, topping the sales list of the same category on TikTok Malaysia.

In addition, since Southeast Asia is located near the equator and has high temperatures throughout the year, electric refrigeration equipment has good development space in the local area.

Data shows that during the period from August 12 to September 10, a handheld electric fan from GOOJODOQ was a hot seller in the Vietnamese market in Southeast Asia. Data shows that its average selling price was 114.21 yuan, and 15,300 units were sold on the TikTok shop Vietnam site in one month, with a total GMV of 1.7507 million yuan.

In general, the global small appliance market has unlimited potential, especially in Southeast Asia, where there are huge opportunities. However, due to regional differences, brands and companies must understand the market demand and consumption habits of different countries and regions in advance when going overseas.

For example, Americans like to cook, so air fryers, toasters, blenders and other products are extremely popular locally; Europeans have an urgent demand for small personal care appliances including hair dryers and electric toothbrushes.

Due to the influence of climate, the demand for small household appliances by consumers in Southeast Asia is slightly different from that in other countries. Various refrigeration equipment such as air circulation fans, desktop fans, neck fans, portable USB fans, as well as ice makers, mini blenders and other products are more popular locally.

Another point that must be said is that while companies and brands pay attention to the above-mentioned cross-border hot-selling products, they must not ignore the speed of updating and iteration of small household appliances. While seizing the opportunity to go overseas, they must also be prepared to meet challenges.