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Smart home appliances market set to witness a significant growth in coming years

Published on 16th May, Edition 20, 2016

 

BSH joins bandwagon and targeting to become No.1 home appliances supplier in Pakistan

Seeing the huge potential of home appliances industry in Pakistan, more and more foreign brands and companies are investing here to capture the local consumer market. After the influx of Chinese companies like Changhong Ruba, BSH Hausgeräte GmbH, a 100-percent subsidiary of Robert Bosch GmbH Germany will also be soon launching Bosch home appliance products in Pakistan. BSH is in touch with several prominent local business groups for possible distribution partnerships in Pakistan.

The home appliances industry is currently witnessing a rise in the country in smart home appliances to meet evolving needs of customers. Consumers are moving away from standard equipment and looking to make smart purchases. The production of home appliances including refrigerators, TV sets, air conditioners and sewing machines rose 12 percent to 1.5 million units during 2015-16. The production of the most popular products like fridges and deep freezers was up 15 percent to 0.8 million units, against 0.7 million units during the same period of the previous year.

The growth of the home appliances industry has been phenomenal over the years. Companies have launched innovative products to meet the ever-growing need of tech-savvy consumers. They have expanded rapidly into the burgeoning consumer markets. This year, the market will be faced by concerns of CO2 emissions that will most likely to trigger demand for air purifiers in the coming years. Also, more awareness about healthy eating items has driven the growth for light fryers. Further, a lack of water and energy resources will see people opting for more energy-efficient appliances.

Split air conditioners are also expected to have the greatest potential due to tangible benefits in energy savings and convenience. The smart home appliances market is expected to witness a significant growth in the coming years, due to technological advancement in electronics and communication sectors and the growing need for energy efficiency. The world smart home appliances market is segmented into appliances such as washing machines, refrigerators, dishwashers, air conditioners and other small electrical appliances such as coffee machines, vacuum cleaners, etc.

BSH expanding distribution in Pakistan

BSH Hausgeräte GmbH is set to launch Bosch home appliance products in Pakistan. According to the Chief Executive Officer of BSH in the UAE and responsible for the Middle Eastern and South Asian, Gokhan Sigin, his company wants to expand its distribution into Pakistan with a newly set-up retailer/distributor network. “The country is now one of the region’s emerging economies. With annual population growth of more than 2 percent, Pakistan has one of the highest growth rates in Asia. This results in an increasing number of households, which have a need for home appliances”, he added.

Quoting International Monetary Fund, Gokhan Sigin said the Pakistan’s economy is likely to post steady growth of around 5 percent per year up to 2020. The reasons for this include the low inflation rate and a steadily growing affluent consumer base, which is forecasted to increase by around 6 percent annually. Both factors are having an overall positive effect on local purchasing power, he added.

 

Pakistan is the sixth most populous country in the world, making it a very attractive market indeed for the BSH. “On account of the growing population and a young population with the low median age of 22, we see good business opportunities in Pakistan for Bosch in the medium and long term”. We are targeting to become the number one home appliances supplier in Pakistan by doubling the T/O year-on-year,” he said.

He further said that the company would focus on the sale of home appliances products for growing Pakistani consumer base. “Pakistan has a growing percentage of an affluent, dynamic and future-oriented consumer base which is improving its lifestyle trends and Bosch is keen to offer its world class home appliances to consumers in Pakistan,” he said.

Briefing about his company, Gokhan Sigin said the BSH Hausgeräte GmbH is the largest home appliance manufacturer in Europe, and the second largest worldwide. BSH’s product portfolio spans the entire spectrum of modern household appliances that includes everything from stoves, ovens, extractor hoods, dishwashers, washers, dryers, refrigerators and freezers to small appliances like vacuum cleaners, coffee machines, electric kettles, irons, and hairdryers. This makes BSH the only full-range provider of home appliances globally.

What distinguishes Bosch home appliances from other brands is quality, durability, performance, German heritage since 1886 and continuous innovation in technology and research. It is not coincidental that the brands advertising claim “Invented for life” drives Bosch home appliances. It is the heartfelt conviction that pervades Bosch’s history, culture, business strategy and products. Since the company’s inception, Bosch has been developing innovations that serve people.

For home appliances, it means giving people peace of mind for their daily life at home in a sustainable, resource saving manner for generations to come. Hence to increase awareness of energy and water efficiency related to home appliances will become integral part while addressing the consumer needs in Pakistan, he further said.

The launch of home appliances products in Pakistan is part of Bosch’s consistent and long-term growth strategy in South Asia. “Our customers in Pakistan will definitely benefit from our company’s innovations. Ultimately, we also contribute to improving quality of life for local people with our products and services” he said.

As the initiator and dominant player globally, BSH’s ambition for Pakistan is to develop the built-in business for modern residential developments and introduce the latest innovations and technologies in home appliances under the Bosch brand into the Pakistan market.

The consumer is at the center of all of the BSH’s developments. Improving the consumer’s quality of life is what determines the company’s activities. With the individual needs of local consumers in mind, the company develops home appliances that are characterized by intelligent and timeless design, user-friendliness and energy efficiency, he concluded.

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