Source for above: (IBIS World)
Over the five years to 2024, the expansion of the housing market is expected to significantly influence revenue for the Major Household Appliance Manufacturing industry. However, growth in the number of housing starts is forecast to be noticeably slower than it was over the five years to 2019 and is also highly contingent upon current economic growth being sustained.
Coupled with rising input costs, industry revenue growth is expected to be moderate moving forward. Additionally, while exports are expected to rebound somewhat, subdued export growth will likely be unable to bolster much growth in industry revenue. Over the five years to 2024, industry revenue is expected to increase at an annualized rate of 0.5% to $21.1 billion.
What are the reps saying about selling LG appliances in the stores?
Source: MarketSource Analytical Research Survey
- MarketSource LG reps indicated that the number one barrier they face with ready-to-buy consumers NOT purchasing LG is due to price vs. competitors (47%)
- They also mentioned that the product availability or time to deliver is longer and customers want the appliance faster (31%)
- Rounding out the top three reasons, reps indicate that there is a false perception that consumers have around maintenance and the difficulty getting parts and service for repairs (13%).
- However, the same field reps indicated that LG was
best overall provider of support in retail and marketing (57%), followed by Samsung (27%) and Whirlpool (12%).
Barriers to selling HA:
“Occasionally I will hear customers say that repairmen have advised not to buy LG because they are difficult to repair. In turn, I advise the customer that the statement is untrue and that LG requires the technicians to be certified in order to stand by LG warranties.”
“Inventory availability in Lowes especially; many everyday items are two to three weeks out before they are available for delivery. There is a similar situation at Home. Depot.’
“Price, the only sales we lose are the ones we are not priced for. We have no builder grade options to accommodate large “pro” orders.”
Appliance retailer competition:
“It depends on which retailer I am in – if I am at Lowe’s customers mention going to Home Depot if model is unavailable at Lowe’s and vice versa.”
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