Brazil’s economic growth remains fragile in Q3 2020 and is expected to hit with the outbreak of coronavirus. although, slow labor recovery and household consumption increased supported by government measures to such as the withdrawal of the FGTS (Guarantee Fund for Length of Service) that will release more than 10.8 Billion from its economy. This is going to impact the consumer goods spending by money supply increase in the market and positively influence durable consumer goods such as laundry appliances.
However, the global spread of Covid-19 will have a negative impact on Brazil’s consumer spending in 2020, with real household spending forecast to contract by 7.8% in 2021.
Rising household expenditure and income along with changing lifestyles and standard of living are some of the factors fostering the demand for laundry appliances in the Brazilian market. Smart technology and voice commands and multi-functional laundry appliances are further fueling the demand for appliances in both commercial and residential sectors.
The launch of the automatic washer dryer by LG is a new innovation in the market that features Artificial Intelligence and AI-powered customer care services. The machine not only tells consumers about weight and load also gives information about the type of fabric identified with sensors.
Space constraints in cities and the busy lifestyle of the people due to reduced time are enhancing the use of convenient appliances such as washing machines in Brazil. The increasing purchasing power of the households and reduced credit rates are making households major buyers of the washing machines in the country.
The washer-dryer is also preferred because of the dual function of the dryers and washing machines in one appliance and is also perfectly suitable for small apartments and flats. However, commercial laundry services are also gaining traction due to low-cost operations and few investments.
Brazilians import of Washing machines has risen in the year 2019, by 24% when compared with the year 2018. The increase was mainly for the larger washing machines for the home appliances segment. Washing machines that can handle large capacity are more preferred by consumers in the market. Automatic washing machines also support the growth of the segment. Major importers include China with a share of 82%, Korea with a share of 8.59%, the USA with a share of 1.65%, and Vietnam and India with a share of 1.6%.
The Brazil laundry appliances market is moderately consolidated with international players such as Electrolux and Whirlpool holding significant share and also has national brands and a few regional brands. However, many international brands such as LG, Brastemp, and Samsung are intensifying competition in the market for laundry appliances. The international players have a good variety of high-quality products and are looked at as traditional brands by consumers