Household equipment sector risk report

• Normalization of demand as the pandemic boom wanes off
• Easing of supply-chain tensions (semiconductors)
• Changes in commodity prices (steel, copper, plastics)
  

Household Equipment comprises different industries involved in the design and manufacturing of domestic equipment for households. While companies exhibit very different profiles between segments, they have in common a strong sensitivity to consumer spending and a reliance on Asia Pacific, mostly China, for their manufacturing activities. Mature economies still make up for the vast majority of demand.

- Consumer electronics: audio and video equipment, computers, mobile phones etc. with an estimated USD2,450bn in turnover. Product markets are now largely mature and driven by replacement sales. A handful of companies generally dominates their markets and focus on design, R&D, marketing etc. while outsourcing manufacturing to contract manufacturers. Asia Pacific concentrates more than 85% of global turnover. Mexico is the only significant manufacturer outside of the region.
- Domestic appliances: small appliances (home care, personal care, cooking aids…) and large appliances (refrigerators, ovens, dishwashers, washing machines…) with an estimated USD530bn in turnover. Much like consumer electronics, product markets are largely mature and dominated by a few large global players and smaller niche, regional competitors. Asia Pacific’s share of global turnover stands at about 80%. Other manufacturing countries include Germany, Italy, Turkey and the U.S.
- Furniture and furnishings (USD520bn in turnover) is, on the contrary, a highly fragmented industry dominated by small- and medium-sized companies working closely with designers and retailers. A few mature economies, including Germany, Italy and the U.S., still have a significant presence in the industry.