Home appliance market exceeds $50 billion, Shopee’s best-selling list is released

Home appliance market exceeds $50 billion, Shopee’s best-selling list is released

Home appliance exports are booming. According to the data from the General Administration of Customs, China exported 631.85 million home appliances in January and February this year, a year-on-year increase of 38.6%, and the demand for home appliances in overseas markets is strong.

One of the key areas for domestic home appliance exports is Southeast Asia, where the home appliance market is expanding rapidly. According to Statista research data, the revenue of the home appliance market in the region will reach US$50.33 billion in 2024. Shopping is leaning towards online. On the leading e-commerce platform Shopee, home appliance sales, sales volume and Chinese seller penetration rate in Southeast Asian sites all rose last year, and cross-border home appliance sales have shown a strong growth momentum.

To strike gold in a hot land, sellers should first have insight into the market. This article will analyze the home appliance consumption habits in Southeast Asia and reveal the local hot-selling home appliances and potential products.

Demand for home appliances in Southeast Asia surges, sales soar

Female consumers in Southeast Asia often make more household purchases, so the gender distribution of home appliance consumers in Southeast Asia is slightly higher than that of men. Flash sales and seeding marketing can achieve higher conversions for this group. According to Shopee statistics, in terms of age distribution, home appliance consumers are mainly concentrated in the 25-45 age group. Specifically, young consumers in Vietnam account for the highest proportion, generally concentrated in the 18-34 age group; followed by the Philippines and Thailand, and there are more middle-aged consumers in Singapore, Malaysia and Latin America.

Southeast Asia has a young population structure and a large base. As the economic level improves, the local demand for home appliances continues to rise.

According to the forecast of the authoritative data agency Statista, from 2024 to 2028, the Southeast Asian home appliance market will show strong growth momentum, and its compound annual growth rate is expected to reach an impressive 5.09%. In this magnificent market trend, large home appliances occupy half of the market. It is estimated that the capacity of the large home appliance market this year will exceed the US$33.45 billion mark . Behind this figure, the high revenue of a single home appliance is indispensable.

(Southeast Asia home appliances category revenue forecast)

At the same time, the small home appliance market is also showing great vitality, with revenue expected to reach US$16.88 billion. Small home appliances have gradually won the favor of consumers with their high frequency of replacement and rich and diverse product categories. In recent years, small home appliances have become an emerging personalized consumption hotspot, which has not only promoted the prosperity of the market, but also spawned the vigorous development of multiple sub-tracks such as kitchen, cleaning, and personal care. These sub-tracks have their own characteristics, providing consumers with more diversified and personalized choices, and also bringing unlimited business opportunities to the e-commerce industry.

These strong subcategories collectively promoted the rapid growth of the home appliance category, making it a dark horse category. Last year, the home appliance category on Shopee flexed its muscles, achieving rapid year-on-year and month-on-month growth in sales, sales volume and Chinese seller penetration. Cross-border home appliances started high and continued to rise, with sales soaring all the way.

Although Southeast Asian consumers are keen on home appliances, they do not buy them all. The hot and humid climate and unique living and eating habits have led locals to form different preferences for the use of appliances. According to a report released by TMO, in the Southeast Asian kitchen appliance market, cooking pots and steamers account for as much as 24%, and food processors such as blenders account for 20%; among other home appliances, cleaning appliances dominate, with vacuum cleaners accounting for 33% of the market share, and air-related appliances accounting for as much as 38%, with fans and air conditioners in great demand.

It is worth mentioning that even in Southeast Asia, a regional market with similar geography and culture, there are obvious differences in home appliance selection preferences between different sites. In-depth understanding of local consumers' needs and preferences and formulation of targeted market strategies will be the key to success.

Inventory of hot-selling products and potential products at each site

The Philippines, Malaysia, Thailand, and Singapore are the main markets for home appliances, and the Vietnam site is also growing rapidly. Different climates and food cultures have fostered different consumer preferences. For popular categories such as kitchen appliances, air conditioners and fans, and home cleaning, sellers can select products and layout them in a targeted manner.

Philippines Site

Influenced by history, the Philippines has integrated Western civilizations from Spain and the United States and formed a food culture that combines Chinese and Western elements. In terms of food and beverage, locals may pay more attention to Western kitchen appliances, such as rice cookers, induction cookers, and electric ovens. There is a high demand for auxiliary tools such as blenders, mixers, and food processors . Western dessert making machines are also easy to be attracted.

In terms of climate, the Philippines is generally hot and humid throughout the country, with a summer cycle lasting 10 months, with the peak period from March to June. In the past two years, the demand for air conditioners and fans has skyrocketed exponentially, with March to October being the key sales months. Handheld fans, neck-hanging fans, and folding washing machines are all cross-border hot-selling products; among local products , traditional floor-standing household fans are even more popular.

Fans are a must-have in the home, and cleaning appliances are also indispensable. Lightweight and low-priced vacuum cleaners and sweeping robots are hot sellers in the Philippines and Vietnam. In addition, locals also favor clothing-related products, such as hanging irons and irons , which have received high attention.

Thailand site

Unlike the Philippines, Thailand prefers handheld vacuum cleaners for household cleaning. Water flossers, air purifiers and hanging irons are also popular products.

Geographically, Thailand is connected to Cambodia in the east and Malaysia in the south, with vast sea areas. The local cuisine is famous for its rich flavors and spices, and often uses condiments such as chili, lemongrass, ginger and garlic. Therefore, Thais are more inclined to buy auxiliary tools such as blenders, grinders and juicers , and also like stoves and steamers with versatility, adjustable firepower and temperature . Coffee machines are also very popular.

Due to the tropical monsoon climate, Thailand's summer starts early and ends quickly. Fan and air conditioner sales start in March and decline in July, reaching the annual sales peak in April. February to April is the dry season, and the demand for air purifiers reaches the highest level of the year due to the impact on air quality .

Vietnam Site

Northern Vietnam is the main birthplace of its culture. Northern dishes are strictly selected for seasoning and raw materials, which also forms the characteristics of Vietnamese cuisine, which is light, healthy and fresh. Locals pay more attention to the functionality and practicality of kitchen appliances and tend to buy auxiliary tools such as blenders, wall breakers, steamers and rice cookers .

Vietnamese consumers are relatively young and tend to buy brightly colored appliances. As the proportion of people living alone is high, small kitchen appliances such as steamers and cooking pots for one person are very popular. In addition, due to the domestic income gap, the average selling price of hot-selling refrigerators in Vietnam is relatively high, reaching around US$1,000.

Due to its tropical climate, Vietnam has heavy rainfall and high humidity. The local summer is long. March to September is the golden period for the sales of fans and air conditioners , and traditional models are more popular. The dry season is from November to April of the following year, during which the demand for air purifiers and humidifiers peaks.

Small sweeping robots are popular cleaning appliances in Vietnam. Consumers are also very concerned about oral hygiene, and water flossers are also hot-selling products.

Malaysia & Singapore Site

Singapore and Malaysia are multicultural markets with high per capita spending power. People are more inclined to buy high-quality, fully functional kitchen appliances, and pay more attention to integrated kitchen equipment such as integrated ovens, gas stoves and refrigerators , as well as advanced kitchen technology and smart home solutions.

Different from kitchen appliances, Singapore and Malaysia have different choices for cooling products. Kuala Lumpur has summer all year round, with the rainy season from October to March of the following year and the dry season from April to September. The hot-selling products in Malaysia are mainly large fans and washing machines , while the hot-selling products across borders are mainly handheld fans and neck fans . Singaporean consumers prefer products with stronger functionality.

However, in terms of cleaning, Malaysia and Singapore both have a high demand for portable, multifunctional and intelligent vacuum cleaners , and are more receptive to high-priced smart homes. Sellers can enter the market of small handheld vacuum cleaners, multifunctional vacuum cleaners such as wet and dry vacuum cleaners, and intelligent sweepers and floor scrubbers .

Conclusion

Home appliance sales channels in Southeast Asia are gradually shifting towards online. As the leading e-commerce platform in Southeast Asia, Shopee carries a huge amount of local purchasing demand.

In addition to popular kitchen appliances, cleaning and cooling products, consumer demand for home appliances and supporting products is also rising. As a core home entertainment device, the demand for televisions has surged with the rise of the middle class, and Shopee's localized fulfillment and other services have helped the rapid development of categories such as televisions, washing machines and dryers. For different sites, sellers can formulate refined marketing strategies, such as emphasizing multi-functional portability in Singapore and Vietnam, strengthening OEM marketing in the Philippines and Malaysia, and focusing on refined brand operations in Thailand. In addition, circuit components such as sockets and extension cords also perform well in SLS and localized fulfillment because of their small size and convenience, and consumers are more inclined to buy safe and easy-to-use products.

In addition to several major hot-selling sites in Southeast Asia, Brazil and Mexico are emerging as potential emerging markets for home appliances. Unlike the long-term high temperature climate in Southeast Asia, Brazil's summer is from December to January, which can complement the Southeast Asian market. Fan and air conditioner sellers have almost no off-season throughout the year.

Overseas home appliance consumption has started. In the next few years, this wave will become bigger and bigger. Cross-border sellers who seize the opportunity decisively are expected to ride the wave and take advantage of the Shopee platform to move forward and be one step ahead in the gold rush.

Recently, Shopee launched an upgraded version of the "10-all" and "10-free" plan for new sellers. The "10-all" plan means fully opening the top ten first sites; the "10-free" plan means launching ten free incentives, including no deposit for the first three months, no commission for up to three months, and free advertising funds of US$60. Through one-stop guidance, Chinese cross-border sellers can go global without worries and embark on a journey of explosive sales.