In 2015, the household equipment sector grew by +2.6%, well below its long term trend (+5.4% over the last decade). The sector is at the boundary between household investment and consumption, comprising appliances or “white goods” (65%), consumer electronics aka “brown goods” (20%), and furniture (15%). It is highly globalized and sensitive to the economy as a whole. Long-term sales growth has therefore remained weak because of (i) price pressures, and (ii) the close linkage with the construction sector, in itself still weak in many countries.
Despite this global structure, a strong dichotomy persists between: (i) advanced economies where the sector faces stagnation or is slightly decreasing in value (-0.3% per year since 2005); and (ii) emerging markets where it enjoys steady growth (+6% over the last 10 years).
Growth in advanced economies depends to a large extent on technological innovations and household decisions on equipment renewal. External mega events can boost the market: think, for example, about what the football world cup or the Olympic Games mean for ultra HD TV. Televisions specifically rely on growing markets where consumers gain access to high end equipment.