Dishwashers Market Analysis in Choosen Countries

Make a decision on location of a new plant for manufacturing household appliances (dishwashers).

Kenan MirzayevDawid Lis

Spis treci

1.Introduction32.Indicators42.1.List of proposed indicators42.1.Chosen indicators53.Countries73.1.List of proposed countries:73.2.Chosen countries104.Indicators value in choosen countries (2009-2014)135.Brief dishwasher market description in chosen countries185.1.Russia185.2.Brazil195.3.South Africa205.4.Egypt225.5.India235.6.Japan245.7.United Kingdom265.8.Colombia275.9.Spain296.Research results317.Summary338.Table of figures34

Introduction

In this project we had been asked to propose and then choose countries suitable to open dishwasher manufacturing facility. We decided to first prepare countries we would like to run our new business and then define indicators which allow us to make right decision. From broad list of both indicators and countries, we picked those, we thought are most appropriate ones.As a next step we analyzed reports on dishwasher markets in countries chosen that we found in Euromonitor database. Basing on data provided in those report we assessed scores used later on to pick the most appropriate country. For countries and indicators chosen we gathered data for last 5 years. Each indicator was weighted so as market report and weighted score for each country was calculated. Whole research was based on Euromonitor database as it provided us all necessary data, which was also up to date.

Indicators

List of proposed indicators

Table 1 List of proposed indicatorsIDIndicator nameDescription

1.GDPIt indicates how much economy produces. It is one of most important factors for any business.

2.GINI IndexIt shows how income is distributed within a country. Countries with high GINI index may not be a good choice because it can mean that we may not find too much customers.

3.Access to electricity, waterTo run dishwasher both electricity and water is needed. Markets with low rate of access to those resources can be a poor choose.

4.Price per 10 litres of DieselIndicates how expensive transportation in country is. Merchandise such as dishwasher are mostly transported via road infrastructure.

5.Average size of householdIt is important factor because the bigger the household is, the more they need appliances such as dishwasher.

6.Wage per hour in manufacturing Indicates how much it will cost to hire workers, management staff. It will also somehow indicate how rich society is and how much can they spend on our products.

7.CIT valueIt indicates how much tax we will have to pay for our sales. The lesser CIT is the more we will earn (if other indicators are the same)

8.Average water / electricity pricesBoth resources are needed to run a dishwasher so if their prices are too high (especially electricity as studies shows that dishwashers are less water consuming that regular, hand washing) people may not be optimistic about buying our product. Also in production process electricity is used so the cheaper it is the lower our costs are.

9.Household appliance expendituresIt shows how much, on average, family spends on household appliance (such as dishwasher) every year. The more they spend the better customer they can potentially become.

10.Land pricesIf we want to open a factory we have to take into consideration buying or leasing a ground for this facility. Since leasing seems unprofitable (considering that factory is rather long-term investment), land price is really important factor for us.

11.Steel pricesSince dishwasher are made mostly from steel, its price is important factor. The less it costs in chosen country the less it will cost us to create the product and the more competitive we can become (potential export).

12.Highways densitySimilar to diesel prices. Since we plan to transport products with trucks, number of highways is important indicator. Highways are safer, faster, cheaper (they dont deprecate trucks as fast as regular roads) than regular local, roads.

13.Corrupcy rateOn one hand if the country is corrupted we can use it for our advantage. On the other hand it is never safe to operate in a country with high level of corruption.

14.Number of universitiesAs we plan to invest in R&D, university graduates will also be taken into consideration as our employees. So the more universities in a country, the higher the number of graduates.

15.Interest ratesPrice of money is always an important indicator for investors. It indicates ex. how much bank loans costs in given country.

16.Possession of dishwashersIndicates how many households already possess a dishwasher. It define how many potential customers we will find in given country

Source: Own elaboration

0. Chosen indicators

Table 2 List of chosen indicatorsIDIndicator nameDescription

1.GINI IndexIt shows how income is distributed within a country. Countries with high GINI index may not be a good choice because it can mean that we may not find too much customers.

2.Access to waterTo run dishwasher both electricity and water is needed. Markets with low rate of access to those resources can be a poor choose.

3.Price per 10 litres of DieselIndicates how expensive transportation in country is. Merchandise such as dishwasher are mostly transported via road infrastructure.

4.Average size of householdIt is important factor because the bigger the household is, the more they need appliances such as dishwasher.

5.Wage per hour in manufacturing Indicates how much it will cost to hire workers, management staff. It will also somehow indicate how rich society is and how much can they spend on our products.

6.Household appliance expendituresIt shows how much, on average, family spends on household appliance (such as dishwasher) every year. The more they spend the better customer they can potentially become.

7.Possession of dishwashersIndicates how many households already possess a dishwasher. It define how many potential customers we will find in given country

Source: Own Elaboration

Countries

List of proposed countries:

Table 3 List of proposed countriesIDCountryDescription

1.RussiaWorkforce is rather cheap there but high corruption and not that stable political situation may be dangerous. Depending on location there may be troubles with access to water and electricity.

2.BrazilBrazil is one of the four largest developing economies in the world. There are no restrictions imposed by the government for foreigners buying land andproperty in Brazil. This ensures the respect of the terms of contracts and the rights of foreign investors. Property ownership is 100% freehold and secure.

3.South AfricaOne of the main reasons for South Africa becoming one of the most popular trade and investment destinations in the world is due to the country ensuring that it can meet specific trade and investment requirements of prospective investors.

4.Columbiathe country reached the fifth place in Direct Foreign Investment in the world, according to the United Nations Conference for Commerce and Development. Investment grew from $6.8 million USD in 2010 to $13.234 million USD in 2011,

5.EgyptThe country is in a geographically strategic location. Moreover, it offers a cheap and relatively qualified labor force. Its growing population constitutes a non-negligible market in the region. the government policy for large scale liberalization and improving the appeal to foreign investors are encouraging signs for foreign investment.

6.IndiaIndia is one of the hottest economies on the planet and holds tremendous profit potential for investorsIndias economy is growing at a 9% rate, TEN times faster than the U.S. and only a couple of percentage points behind China.

7.FranceAt the moment you procure workers, it can get to be exceptionally costly, especially the social charges; however normal compensations are normally lower in France than e.g. the UK; Company organization can get complex once you procure representatives, and they are agreed solid rights.

8.JapanBusiness is booming. Large manufacturers are operating at near-full capacity. And yet economic forecasters are consistently underestimating the speed of the recovery. In April, machinery orders were expected to grow by 3.5% - the actual figure was 10.8%.

9.ArgentinaArgentina is one of three South American countries to make the rundown of the most exceedingly awful nations to make an investment.Out of 10 key pointers for working together, Argentina has one of the most reduced rankings concerning securing a development grant. It takes around one year to get a development grant, contrasted and a normal of around seven months for Latin American nations and the Caribbean.

10.United KingdomThe easiest place to establish and run a business is Europe: According to a World Bank study, it takes only 13 days to establish a business in the UK. The World Bank has ranked the UK first in Europe and sixth in the world to operate business. the UK is known for its quality research base and ranks second on the list of most productive places for innovation.

11.IndonesiaIndonesia, Southeast Asia's greatest economy, is one of three Asian nations to make the rundown of the world's most noticeably bad places to work together in. The nation is a standout amongst the most troublesome spots to begin a business. It takes one and half months to dispatch a business in Indonesia, about three and half times longer than the normal for all OECD nations. Getting electricity on the planet's fourth most crowded country likewise takes 20 days longer than in whatever is left of East Asia and the Pacific.

12.SomaliaDespite the fact that workforce is truly cheap in Somalia, flimsy political circumstance settles on it poor decision. Likewise access to water and power is restricted. Transport framework is likewise undeveloped.

13.NigeriaPolitical turmoil and developing ethnic and religious pressures make the nation one of the most exceedingly terrible spots to invest in, on the other hand. Nigeria positions among the most reduced on the planet in terms of getting electricity and enrolling property for business. It takes almost three months to get past the 13 systems needed to enlist a property, contrasted with one month in OECD nations.

14.PhilippinesForeign organizations are careful about the Philippine's unsteady lawful framework, violence , and organization. Its simplicity of working together positioning from the World Bank fell a further two spots not long from now from 2010. The nation additionally positions among the most minimal in the matter of beginning a business, and determining indebtedness, with the recent taking more than five and half years, contrasted and a normal one year and seven months in OECD nations.

15.AlgeriaAlgeria positions among the least on the planet concerning beginning a business, getting power, enlisting property, and documenting expenses. It takes 48 days to enlist a property in Algeria, contrasted and around a month in the normal of OECD nations. Getting a power association takes over five months, contrasted and two and half months in rest of North Africa and the Middle East.

16.UkraineThe nation positions among the extremely base with regards to simplicity of paying duties, managing development allows, and access to power, to give some examples. It takes 27 days for organizations to pay assesses in Ukraine, with the aggregate duty rate at more than 57 percent of an organization's benefit. The measure of time it takes to pay duties is more than twofold the time in Eastern Europe and Central Asia.

17.VenezuelaDistinguishing proof is even needed for the littlest buys, for example, staple goods. Swelling is additionally an alternate significant issue in Venezuela. Yearly swelling for the 12-month period through September totaled 26.5 percent, demonstrating the nation's economy could be escaping from control.

18.LibyaLibya's DTF score was 33. what's more, positioned 188 in simplicity of business. Its most minimal scores were for managing development grants, determining indebtedness, enlisting property, securing minority financial specialists

19.The Central African RepublicThe Central African Republic earned a DTF score of 34.47 and simplicity of doing business rank of 187. Issue ranges incorporate beginning a business, getting power, exchanging crosswise over fringes and paying expenses.

20.SpainThe Spanish market represents a quarter of the euro zone, with 47 million consumers.The fiscal pressure is below average in the UE-27 and the Euro zone with one of the lowest taxes (IVA) of the UE. It has a very interesting reduction system of income tax for businesses which results in an effective tax of 16.7%.

Source: Own elaboration based on data from Euromonitor

Chosen countries

Table 4 Countries chosen for deeper researchIDCountryDescription

1.RussiaWorkforce is rather cheap there but high corruption and not that stable political situation may be dangerous. Depending on location there may be troubles with access to water and electricity.

2.BrazilBrazil is one of the four largest developing economies in the world. There are no restrictions imposed by the government for foreigners buying land andproperty in Brazil. This ensures the respect of the terms of contracts and the rights of foreign investors. Property ownership is 100% freehold and secure.

3.South AfricaOne of the main reasons for South Africa becoming one of the most popular trade and investment destinations in the world is due to the country ensuring that it can meet specific trade and investment requirements of prospective investors.

4.Columbiathe country reached the fifth place in Direct Foreign Investment in the world, according to the United Nations Conference for Commerce and Development. Investment grew from $6.8 million USD in 2010 to $13.234 million USD in 2011,

5.EgyptThe country is in a geographically strategic location. Moreover, it offers a cheap and relatively qualified labor force. Its growing population constitutes a non-negligible market in the region. the government policy for large scale liberalization and improving the appeal to foreign investors are encouraging signs for foreign investment.

6.IndiaIndia is one of the hottest economies on the planet and holds tremendous profit potential for investorsIndias economy is growing at a 9% rate, TEN times faster than the U.S. and only a couple of percentage points behind China.

7.JapanBusiness is booming. Large manufacturers are operating at near-full capacity. And yet economic forecasters are consistently underestimating the speed of the recovery. In April, machinery orders were expected to grow by 3.5% - the actual figure was 10.8%.

8.United KingdomThe easiest place to establish and run a business is Europe: According to a World Bank study, it takes only 13 days to establish a business in the UK. The World Bank has ranked the UK first in Europe and sixth in the world to operate business. the UK is known for its quality research base and ranks second on the list of most productive places for innovation.

9.SpainThe Spanish market represents a quarter of the euro zone, with 47 million consumers.The fiscal pressure is below average in the UE-27 and the Euro zone with one of the lowest taxes (IVA) of the UE. It has a very interesting reduction system of income tax for businesses which results in an effective tax of 16.7%.

Source: Own elaboration based on data from Euromonitor

2

Indicators value in choosen countries (2009-2014)

Russia

IDIndicator name201420132012201120102009

1.GINI Index42.242.14241.742.142.1

2.Access to water81.380.879.978.97878

3.Price per 10 Litres of Diesel9.68.67.86.95.14.9

4.Average size of household2.62.62.62.62.62.6

3.Wage per Hour in Manufacturing5.95.14.53.83.32.9

6.Household appliance expenditures10,171

9,710

9,368

8,577

7,718

6,232

7.Possession of Dishwasher - % of households5.65.35433

South Africa


1.GINI Index63.663.663.663.663.663.6

2.Access to water75.474.172.871.570.369.2



3.Wage per Hour in Manufacturing3.83.63.532.82.6


1,659

1,579

1,487

1,396

1,337

7.Possession of Dishwasher - % of households7.26.87.16.76.15.6

Egypt


1.GINI Index36.736.736.636.536.336.2

2.Access to water95.995.895.695.595.395.1


4.Average size of household3.83.83.93.93.94



1,649

1,150

879

602

424

7.Possession of Dishwasher - % of households2.62.52.32.221.8

Brazil


1.GINI Index49.549.75050.150.550.9

2.Access to water95.595.194.794.293.693





17,492

16,379

15,634

14,744

13,525


Japan


1.GINI Index35.134.834.834.634.234.6

2.Access to water99.899.799.799.799.799.7

3.Price per 10 Litres of Diesel13.412.81211.910.79.8


3.Wage per Hour in Manufacturing2019.419.21918.718.5


28,834

28,254

28,459

31,720

27,971


India


1.GINI Index41.040.640.239.939.539.3

2.Access to water48.547.246.045.044.043.1


4.Average size of household4.84.84.94.955



9,611

8,670

8,543

7,7475,997


United Kingdom


1.GINI Index34.2343335.334.433.5

2.Access to water99.999.999.999.999.999.9





11,901

11,966

12,158

12,121

9,854

7.Possession of Dishwasher - % of households43.642.842414039

Colombia


1.GINI Index53.353.953.954.85655.7

2.Access to water90.589.88988.487.787.2


4.Average size of household3.8

3.8

3.8

3.8

3.8

3.9



1,506

1,399

1,284

1,139

1,007


Spain


1.GINI Index3736.936.936.736.536.9

2.Access to water99.899.799.799.799.699.6





6,305.7

6,502

6,675

6,745

6,672


Brief dishwasher market description in chosen countries

Russia[footnoteRef:1] [1: Section based on Dishwashers in Russia Report (20 Mar 2015, Euromonitor)]

Important facts: Sales volume grew by 17% Sales value grew by 17% Total volume was 879,000 Units Total value was 16.7 billion RUB Average price remained unchanged comparing to 2013 19,000 RUB Biggest competitor would be BSH Bytowaja Technika with 49% of Market share

General trendsDishwasher was the fastest developing category of major household appliances in Russia. Most of Russian households is already equipped with most important appliances such as washing machines and cookers so we can assume that right now they will focus on dishwasher market. Another reason may be increased marketing activity of current manufacturers.The average price of dishwasher in Russia is about 19,000 RUB and it havent changed last year possibly because of high competition in the market.Important factor, worth considering is increasing availability of consumer loans. It leads Russians to both changing their living places (and buying all needed appliances for new ones dishwashers included) or simply buying dishwashers for their current houses. It is important that in bigger cities flats are rather small so size of dishwasher will matter for customers.

CompetitionBiggest potential competitor will be BSH with 49% market share. It owns well-known brands Bosh and Siemens. According to Euromonitors report Second important competitor would be Indesit with 13% of market share.

Table 5 Companies dishwasher market share in Russia% retail volume20102011201220132014

BSH Bytowaja Technika OOO39.840.641.847.848.8

Indesit RUS OOO17.416.616.113.613.4

Electrolux Major Appliances Russia10.410.610.67.47.3

BEKO OOO3.33.33.33.33.4

WhirlpoolRussia1.61.71.81.81.9

Haier Rus TK OOO0.20.71.11.31.4

MieleRussia0.80.90.90.90.9

Candy Elettrodomestici Srl0.50.60.60.60.6

Gorenje Russia0.10.20.20.20.2

Brandt ZAO0.5----

Others25.424.823.623.022.0

Source: Euromonitor Dishwashers Market In Russia Report

Brazil[footnoteRef:2] [2: Section based on Dishwashers in Brazil Report (16 Jan 2015, Euromonitor)]

Important facts: Sales volume increased by 28% Total volume was 382,000 units Unit price increased by 2% to 1,162 R$ Biggest competitor would be Whirpool with 38% of market share

General trendsBrazil may be hard market to access because of cultural reasons. Hand washing is considered as important duty of every housewife in Brazil. Also Brazilian society is rather suspicious about new technology and dishwasher is considered as one there. People in Brazil still thinks that dishwasher uses more water than hand washing, but awareness is increasing.Although there was a growth in sales, it was much lower than it was forecasted. One of reasons may be still relatively high unit price. To overcome this difficulty competitors are trying to design more affordable products which leads to opening local factories instead of importing dishwashers from other places.Since unit price is rather high, dishwasher are affordable almost only for higher income households. Those households very often hire maids to take care of house duties though. This may be the reason for this lower growth of sales volume observed.

CompetitionIf Brazil would be chosen as a place to create the factory, we would have to face two main competitors. The first one is Whirpool SA with 38% of market share. Its two main products, Brastemp and Consul are respectively on first and fourth positions in terms of sales volume. Second serious competitor would be Electrolux do Brasil SA with almost 33% of market share with only one brand Electrolux.

Table 6 Companies dishwasher market share in Brazil% retail volume20102011201220132014

Whirlpool SA35.728.033.937.138.1

Electrolux do Brasil SA22.926.629.832.532.7

Mabe Eletrodomsticos SA9.53.93.33.23.1

Multibrs SA Eletrodomsticos-----

BSH Continental Eletrodomsticos Ltda-----

Others31.941.532.927.226.1

Source: Euromonitor dishwashers market in Brazil

South Africa[footnoteRef:3] [3: Section based on Dishwashers in South Africa Report (24 Mar 2014, Euromonitor)]

Important facts: Sales volume increased by 1% Sales value increased by 4% Average price unit slightly decreased Biggest competitor would be LG Electronic SA with 23% of market share Dishwashers are considered in South Africa as luxury, non-essential good

General trendsSince dishwashers are still considered as luxury good in South Africa and hand washing is the most popular method, our target would be upper-medium to higher class. We still need to remember that members of those classes frequently employs local workers to maintain their houses because of low costs of low educated labor. Typical use pattern for those who actually owns a dishwasher is to wait as long as they will be able to load full machine and use it then.Most of sold dishwashers were freestanding ones (99% of total sales), so if we choose South Africa we should focus on this type of machines. Also new trends were witnessed among consumers. They tend to choose so called smart dishwashers. As smart dishwasher we understand ones that e.g. adjust water volume and temperature to load of the dishwasher. Consumers also pay big attention to noise created by machines.

CompetitionThere are four main players in dishwasher market in South Africa right now. The biggest one is LG Electronics SA with 23% of market share. Next three have almost the same market share, where: BSH Home Appliances Corp Ltd has 16%, Defy Appliances Ltd has 15% and Electrolux SA Ltd has 14%. Three first companies based only on one brand while Electrolux introduced 2 brands.

Table 7 Companies dishwasher market share in South Africa% retail volume20092010201120122013

LG Electronics SA (Pty) Ltd20.117.223.223.023.2

BSH Home Appliances Corp (Pty) Ltd15.814.515.316.416.6

Defy Appliances (Pty) Ltd13.314.415.415.515.7

Electrolux SA (Pty) Ltd15.214.215.113.613.8

Lead Household Appliances (Pty) Ltd9.79.59.79.69.7

Whirlpool SA (Pty) Ltd9.09.49.79.39.5

Others16.920.811.612.611.6

SOURCE: Euromonitor dishwashers in South Africa Report

Egypt[footnoteRef:4] [4: Section based on Dishwashers in Egypt Report (15 Jan 2015, Euromonitor)]

Important facts: Dishwashersis expected to drop in volume by 3% and in current value by 5% during 2014 Fresh Electric Co is set to continue dominatingdishwashersin 2014 with a volume share of 59% Egyptian buyers lean toward littler models of dishwashers as a result of little kitchens

General TrendsSmalldishwashersrepresented the dominant part of volume deals in dishwashers in Egypt at ,the end of the review period as the majority of Egyptian customers find them more convenient as the kitchens in typical flats are quite small. Moreover they also believe that smallerdishwashershelp consumers save energy and water. Majority, particularly middle-class consumers live in small apartments because of low rents charged for these apartments. This leaves many of them with little choice but to purchase smaller dishwashers and this is the why so many Egyptians prefer table-topdishwashersrather than standard size dishwashers .Table-top dishwashersare remain the most popular format indishwashersinEgyptfor 2014, accounting for 46% of all dishwashersretail volume sales. Full-sizedishwashersis set to be the second most format, but, with a 38% volume share into the supporting.

CompetitionLocal company Fresh Electric Co is expected to to keep up its driving position in dishwashers Egypt during 2014 with a market volume share of 59%. However 2014 has been a fascinating year fordishwashersinEgyptas working in the classification recorded positive development.. Local brands remain very popular indishwashersinEgypt. This is truly a surprising situation in a major appliances category.

Table 8 Companies dishwasher market share in Brazil% retail volumeCompany2011201220132014

FreshFresh Electric Co63.061.060.259.0

Ideal ZanussiOlympic Group SAE6.17.78.58.9

White WhaleWhite Whale Co6.16.36.56.6

Hotpoint-AristonAristonEgypt6.96.86.76.5

SiemensBSH Bosch & Siemens Hausgerte GmbH5.75.86.06.1

LGLG ElectronicsEgyptSAE2.02.22.42.5

OthersOthers10.210.29.610.4

Source: Euromonitor dishwashers market share in Egypt

India[footnoteRef:5] [5: Section based on Dishwashers in India Report (12 Mar 2014, Euromonitor)]

Important Facts In 2013 dishwashers registers retail volume development of 16% to achieve 33,630 units and current worth development of 23% to achieve offers of Rs1.1 billion Freestandingdishwasherscontinue to dominate, with negligible demand for built-in formats IFB Industries Ltd leadsdishwashersin 2013 with a 52% volume share

General TrendsDishwashersdisplayed volume growth of 16% in 2013, making this the best performing category in major appliances. Additionally, the classification's volume development in 2013 was all that much on a standard with its survey period normal. It was partly also due to its very low sales base inIndia.Dishwashers increased some popularity over the review period however their achieve kept on being restricted to rich buyers in urban zones like New Delhi, Mumbai, Chennai and Bangalore. Dishwashers were valued at over 480$ every unit, which meant they were unaffordable to most consumers in small towns and rural areas.The widespread availability of housemaids and cheap labour is the primary reason for the low penetration ofdishwashersinIndia. Furthermore, an erratic supply of water and electricity, even in metropolitan areas, has hindered the growth ofdishwashers. Indian cooking uses a high measure of oil and other sticky ingredients. This makes the dishes harder for dishwashers to clean thus they have to be flushed independently before being stacked into the dishwasher Full-sized dishwashers kept on leading in 2013, representing a 93% offer of volume deals. The remaining 7% was represented by slimline models. Compared to the West and other parts of the developed world, there were hardly any sales of minimized or table-topdishwashersinIndia. This was because the Indian market remained immature.

Competition With a 52% volume share in 2013, IFB Industries Ltd continued to dominatedishwashers, followed by LG ElectronicsIndiaPvt Ltd with 11% and BSH Bosch & Siemens Hausgerte GmbH and Electrolux AB with a share of 8% each. Of the top five players indishwashersin 2013, only IFB Industries Ltd is a domestic company. However, it led the category because it has years of experience in the Indian market. It understands consumers habits, lifestyles and preferences much better than other

Table 9 Companies dishwasher market share in India% retail volume20092010201120122013

IFB Industries Ltd52.150.651.051.551.8

LG ElectronicsIndiaPvt Ltd9.010.011.010.811.1

BSH Bosch & Siemens Hausgerte GmbH8.98.49.08.68.2

Electrolux AB9.59.39.08.78.1

SamsungIndiaElectronics Pvt Ltd---2.52.8

Electrolux Kelvinator Ltd-----

Others20.421.620.017.918.1

Source: Euromonitor dishwashers market in India

Japan[footnoteRef:6] [6: Section based on Dishwashers in Japan Report (18 Feb 2015, Euromonitor)]

Important Facts DishwashersinJapandeclines by 2% in volume terms in 2014 Both freestanding and built-indishwashersstruggle in 2014 Average unit price ofdishwashersslightly increases in 2014 due to tax increase in April 2014 Panasonic retains its leading position with a 71% volume share in 2014

General TrendsAs Japanese consumers are very conscious about energy and water use for appliances, they keep looking for energy-efficient dishwasher models that use less water. InJapan, households are charged by the exact amount of utilities used, which can be rather expensive, so it is vital for producers to keep on providing more efficient models. InJapan, 75% ofdishwashersare built-in. However freestandingdishwashersare common and this is because the size of a kitchen inJapanis very small and these freestanding options can be placed next to a sink without taking up much space. The main consumer target for freestanding dishwashersare dual-income households who have less time but more disposable income.Table-topdishwashersremained the most famous format indishwashersin 2014, with a 28% volume share. The expanding number of ladies in the workforce drove interest for the format, especially among customers searching for the most affordable and easy-to-install option indishwashers.

CompetitionPanasonic Corp accounted for 71% of volume sales in 2014. The leading player pioneered the market in 1960 and is dominant in built-indishwashersand, with Zojirushis exit, is the only player in freestanding. Rinnai remained the second largest player indishwashersin 2014, with a 20% volume share. The company is a heating appliances manufacturer specialising in built-indishwashers.InJapan, there is no foreign competition as these players face difficulties not only with recognition from Japanese consumers for quality but also with home builders and contractors.

Table 10 Companies dishwasher market share in Japan% retail volumeCompany2011201220132014

PanasonicPanasonic Corp57.857.567.370.9

RinnaiRinnai Corp21.220.320.920.3

MitsubishiMitsubishi Electric Corp1.00.91.01.0

ZojirushiZojirushi Corp6.86.53.1-

ToshibaToshiba Corp5.85.6--

HitachiHitachi Appliances Inc----

HitachiHitachi Home & Life Solutions Inc----

NationalMatsushita Electric Industrial Co Ltd----

SanyoSanyo Electric Co Ltd----

SharpSharp Corp----

TotoToto Ltd----

Private labelPrivate Label----


Source: Euromonitor dishwashers market share in Japan

United Kingdom[footnoteRef:7] [7: Section based on Dishwashers in United Kingdom Report (14 Mar 2014, Euromonitor)]

Important Facts Dishwashersin the UK registers 3% current value growth with sales worth 340 million in 2013 while retail volume growth reaches 1% with 947 thousand units sold Built-indishwashersregisters the higher retail volume growth at 4% with 436 thousand units sold in the UK in 2013 Brand recognition enables BSH Home Appliances Ltd to leaddishwashersin the UK with a total volume share of 29% in 2013

General TrendsA languid housing market in the UK had a positive effect on the overall performance ofdishwashersin 2013. Consumers have postponed their desires of moving home for saving purposes due to the recessionary economic climate. This has brought an expanding trend towards home improvement and redesign. Asdishwashersare still considered as luxury items in the UK, consumers have a tendency to redesign their kitchens with more current and functional appliances, hence giving the opportunity to overall dishwashersto grow in 2013.Innovation inside dishwashers is no more a limitation to purchasers. On the contrary, customers have a tendency to buy dishwasherswith advanced technologies and features for more efficiency. Electronic controls, more programmes and greater all-round versatility as well as low operating noise boost the sales performance ofdishwashersin the UK. Web retailing has an effect on unit prices thanks to more affordable premium brands. However, the average unit price ofdishwasherssaw an increase in 2013, in current value terms.In the UK, kitchens tend to be small, bringing about small size kitchen machines. However, busy lifestyles and convenience needs helped slimlinedishwashersto grow in 2013.

Competition The competitive landscape withindishwashersin the UK is mainly made up of international key players. BSH Home Appliances Ltd maintained its number one position indishwasherswith an overall retail volume share of 29% in 2013. Electrolux UK Ltd ranked second with a total retail volume share of 19%, followed by Indesit Co UK Ltd with a total retail volume share of 15% in 2013. Each having a wide brand portfolios and a good command of technology leading to innovation allows these manufacturers to maintain their leading positions withindishwashersin the UK.

Table 11 Companies dishwasher market share in United Kingdom% retail volumeCompany2010201120122013

BoschBSH Home Appliances Ltd22.822.322.422.5

BekoBeko UK Ltd11.812.613.113.5

Zanussi-ElectroluxElectrolux UK Ltd12.112.412.512.6

HotpointIndesit Co UK Ltd13.412.712.112.0

WhirlpoolWhirlpool UK Ltd4.74.74.74.5

HooverHoover Ltd3.73.63.63.5

SiemensBSH Home Appliances Ltd3.53.43.43.4

IndesitIndesit Co UK Ltd5.83.43.33.2

NeffBSH Home Appliances Ltd3.03.03.13.2

ElectroluxElectrolux UK Ltd3.23.13.23.2

AEG-ElectroluxElectrolux UK Ltd2.72.72.72.6

CandyCandy Domestic Appliances Ltd1.31.31.21.2

Tricity BendixElectrolux UK Ltd----

Private labelPrivate Label0.80.80.80.7


Source: Euromonitor dishwashers market share in United Kingdom

Colombia[footnoteRef:8] [8: Section based on Dishwashers in United Kingdom Report (23 Jan 2015, Euromonitor)]

Important Facts Sales volume increased by 10% to 10,000 units Dishwashers are only used in new housing only built in machines are bought Average unit price increased by 1% Biggest competitor would be Whirpool Columbia SA with 34% of market share

General TrendsRight now in Columbia, manufacturers offers only built in dishwashers. It is connected with culture of hand washing. Right now in Columbia, liquid detergents are still considered as revolutionary technology. Huge percent of citizens still uses soap for doing the dishes. High prices results with only one type of customer high income families building new homes or possibly renovating current kitchens. Also house sizes in Columbia are rather low so citizens which results with more attention paid to usage of free space. Most of sold dishwasher are standard sized. Average family size tends to decrease, so bigger dishwashers thats needs more time to work efficiently has no use there.

Competition Right now the biggest player is Whirpool Columbia SA with over 34% of market share. Whirpools owe its high position to control of most sales channel in country and also competitive prices. Second competitor is Mabe de Columbia SA with almost 30% of market share. It is also worth noting that third, in terms of sales volume, Electrolux Home Products France SA, with 20% of market share right now, noted over 100% growth in market share during last 5 years.

Table 12 Companies dishwasher market share in Colombia% retail volume20102011201220132014

WhirlpoolColombiaSA44.743.846.635.134.3

Mabe deColombiaSA29.821.016.627.228.3

Electrolux Home Products France SA9.822.618.620.620.4

Challenger SAS11.98.45.96.06.1

Industrias HACEB SA--7.55.04.9

Others3.84.34.86.16.0

Source: Euromonitor Dishwashers market in ColumbiaSpain[footnoteRef:9] [9: Section based on Dishwashers in Spain Report (06 Feb 2015, Euromonitor)]

Important Facts In 2014 thedishwasherscategory grows by 5% in volume terms Sales are pushed upwards by a return to economic growth inSpain BSH Electrodomsticos Espaa SA strengthens its leadership, posting a volume share of 34% Freestandingdishwashersaccount for the largest share of volume sales, at 84% in 2014

General TrendsAfter several years of falling-off, 2014 saw the positive development ofdishwashers. Rising interest mirrors the improvements being seen in the Spanish economy. Spaniards are recapturing certainty and buying force, finally making some of the big ticket purchases that they had postponed during the review period. During 2014 producers presented a series of innovations that helped to introduce dynamism to thedishwasherscategory. Newdishwashersare equipped with smart systems that reduce water and energy consumption by targeting washing power exactly where indicated by the user. Energy efficiency is becoming an important issue for Spanish consumers, especially given that energy prices increased notably in the second half of the review period.Full sizedishwashersrepresent 62% of volume sales. Slimline take after with a 25% and this category registered the strongest volume development in 2014, with a ascent of 7%.

Competiton BSH Electrodomsticos Espaa SA strengthened its position as category leader in 2014, with a 34% volume share. Sales were supported by the strong reputation for high quality of its brands among the Spanish population. Indesit Electrodomsticos SA also registered a strong performance, with sales rising by 17% in 2014, to result in a 7% volume share. The Italian company managed to improve its position in the Spanish market by reinforcing its image of offering an affordable brand with good technical performance.

Table 13 Companies dishwasher market share in Spain% retail volumeCompany2011201220132014

BoschBSH Electrodomsticos Espaa SA14.915.315.316.9

BalayBSH Electrodomsticos Espaa SA11.412.011.612.1

FagorFagor Electrodomsticos S Coop10.010.410.17.0

Zanussi-ElectroluxElectrolux Home Products Espaa SA6.26.26.36.7

AEG-ElectroluxElectrolux Home Products Espaa SA5.25.35.35.6

IndesitIndesit Electrodomsticos SA4.95.15.05.6

SiemensBSH Electrodomsticos Espaa SA5.65.45.15.2

HaierHaier Europe Trading Srl4.54.64.65.1

IKEAIKEA Ibrica SA4.65.05.04.9

Source: Euromonitor dishwashers market share in Spain

Research results

Results of analysis are presented in two tables below. First presents data on chosen indicators in chosen countries for 2014. Second table introduces weights for each indicator and presents results of each country.

Table 14 Indicators in countries in 2014Source: Own elaboration based on data from EuromonitorIndicator nameRUSSIABRAZILCOLOMBIASOUTH AFRICAEGYPTSPAINUNITED KINGDOMJAPANINDIA

GINI Index42.249.553.363.636.73734.235.141.0

Access to water 81.395.590.575.495.999.899.999.848.5

Price per 10 Litres of Diesel9.69.111.713.21.917.722.513.47.7

Average size of household2.63.33.8

3.53.82.52.42.44.8

Wage per Hour in Manufacturing5.93.42.43.81.221.825.3200.7

Household appliance expenditures10,171

18,202

1,618

1,734

1,933

6,330

12,175

29,189

11,150

Possession of Dishwasher - % of households5.64.73.57.22.64843.623.20.3

Table 15 Project results based on weighted scoreWeightIndicator nameRUSSIABRAZILCOLOMBIASOUTH AFRICAEGYPTSPAINUNITED KINGDOMJAPANINDIA

0,1GINI Index 623184975

0,1Access to water 354267971

0,05Price per 10 Litres of Diesel675492138

0,05Average size of household457

673119

0,15Wage per Hour in Manufacturing467582139

0,1Household appliance expenditures5

8

1

2

3

4

7

9

6

0,15Possession of Dishwasher - % of households567481239

0,3Market report result 894326517

WEIGHTED SCORE0,6270,6330,5220,3610,6110,4440,5050,4110,761

Source: OWn Elaboration

Summary

Basing on both on indicator chosen and market research the best country, from analyzed ones, would be India. Even though only half of the households has access to water its still leaves about 600 million of potential customers, because right now only 0.3% of households possess a dishwasher. It was the lowest value of all analyzed countries. It may seem as there is just no need for dishwashers in India, but market research showed that during last year there was a 16% of growth in dishwasher sales. This shows that there is growing demand for such appliances, even though most of small town and rural areas citizens still cannot afford dishwasher. With growing salaries (10% in 2014[footnoteRef:10]) and water and electricity accessibility it may be the best moment to enter Indian market. There is one dominant manufacturer right now with over 50% of market share (IFB Industries Ltd) and rest of competitors dont exceed 10% of market share, so there is still place for new players. Income distributions is still acceptable with Indian GINI Index set at 41, so only 6 points worse than e.g. United Kingdom (and over 20 points better than analyzed South Africa). [10: Source: http://www.india-briefing.com/news/average-indian-salary-to-increase-by-10-percent-in-2014-7933.html/]

As it comes to costs of operating in India, it was also one of the lowest from countries analyzed. Both costs of labor (average price for one hour in manufacturing) and diesel fuel (showing cost of transportation) was lowest (labor was lowest and diesel cost was third to lowest). India citizens tends to spend quite a lot on household appliances, basing on their income. We need to take into consideration downsides of manufacturing and selling in India. For example maids position in India. They are still very popular in families able to afford them. This factor may influence demand for dishwasher. When combined with character of Indian cuisine (heavy on oil and other sticky ingredients) that needs also more advanced (and expensive) detergents it may seem just too expensive. We can work this around though, by e.g. setting lower prices on our products (which is possible to low costs of labor and oil).

Table of figures

Table 1 List of proposed indicators4Table 2 List of chosen indicators5Table 3 List of proposed countries7Table 4 Countries chosen for deeper research10Table 5 Companies dishwasher market share in Russia18Table 6 Companies dishwasher market share in Brazil20Table 7 Companies dishwasher market share in South Africa21Table 8 Companies dishwasher market share in Brazil22Table 9 Companies dishwasher market share in India24Table 10 Companies dishwasher market share in Japan25Table 11 Companies dishwasher market share in United Kingdom27Table 12 Companies dishwasher market share in Colombia28Table 13 Companies dishwasher market share in Spain29Table 14 Indicators in countries in 201431Table 15 Project results based on weighted score32

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Dishwashers Market Analysis in Choosen Countries

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