In Indonesia, COVID-19 is expected to cause huge disruption to purchases of consumer electronics in 2020 overall. Almost all categories are expected to end the year with volume sales declines, mainly caused by the closure of store-based retail channels and the general negative economic environment. However, Refrigeration And Cooking Appliance sector is expected to maintain retail volume growth in 2020, although growth will not be particularly dynamic. Culturally, Indonesians love to cook, and most people prefer to cook themselves rather than buying ready meals.
After a year of a strong decline in 2018, refrigeration appliances maintained the second year of retail volume growth in 2020, with freestanding fridge-freezers seeing the highest growth. Amongst the many types of refrigeration appliances, fridge-freezers are also by far the most common in Indonesia.
The development of new refrigeration products is not so much being driven by technological innovation as it is by marketing efforts that seek to meet the lifestyles of Indonesian consumers. Although single-door refrigeration appliances continue to dominate due to their affordability, sales of double-door and even 3-door refrigerators have increased rapidly, along with the growing middle-class population.
Many brands try to direct consumers to double-door models, which dominate the shelf space in modern retail channels.
Sharp Electronics Indonesia continued to lead refrigeration appliances in retail volume terms in 2020, followed by LG Electronics Indonesia. Their long-standing presence and trusted brand image have helped them to become top-of-mind brands in refrigeration appliances.
Aqua Japan Indonesia continued to lead freestanding fridges in retail volume terms, with Midea from Midea Planet Indonesia remaining its main competitor. Single-door freestanding fridges still appeal to low-income consumers.
European brands such as Modena and Ariston (Italy) and Teka and Bosch (Germany) dominate premium refrigeration appliances. Higher-income consumers’ perception of European brands is very positive.
Coming to the other kitchen appliances, Large cooking appliances saw a further retail volume increase in 2020, continuing the long-term growth trend due to continued low penetration across categories. Cooker hoods are important, given the strong flavors used in Indonesian cuisine.
It is becoming more common for consumers to work with interior decorators to find suitable large cooking appliances. Minimalist kitchen designs are taking off – wealthy people tend to renovate their kitchens using the minimalist concept offered by kitchen designers such as Nobilia (Nobilindo Kitchen Indonesia).
Cooking has become a hobby for modern urban consumers. Awareness of healthy lifestyles is persuading people to cook at home. Modena Indonesia continued to lead large cooking appliances in retail volume terms. In terms of price, Modena is competitive compared with other Italian brands, such as Tecnogas and Ariston.
European brands dominate the premium segment in large cooking appliances. Products from Bertazzoni and La Germania, distributed by Mulia Sukses Jaya, are available at Kitchenart and Mitra 10. Rinnai’s strong position in large cooking appliances is down to its pricing and wide distribution strategy. The brand offers competitive prices and ensures product availability in traditional distribution channels.
After an expected period of slowdown in 2020, strong recovery is expected for kitchen electronics from 2021, as consumers are getting used to the “new normal” and most businesses can operate fully again without any movement restrictions. As consumers and industries get used to this new situation, manufacturing facilities and households will be able to operate normally, and the job market is slowly expected to return to normal. In 2020, e-commerce is expected to see significant volume sales and share growth, as some consumers in big cities are shopping online through e-commerce platforms.