First the leaps forward by the European Commission which for years, also in conflict with the European Parliament and Council, it issues directives on decarbonisation that are inapplicable and undermine European manufacturing, with regulations that favor non-European competitors who smell of dumping. And then, a few days ago, the turn of the president, Ursula von der Leyen, who, following protests from governments, public opinions, business and trade union associations, suddenly, ahead of the European elections, it sets aside every program, every funding and the Commission's good intentions on eco-sustainability. But most of all it seems to worry, together with inflation and geopolitical tensions, the uncontrolled alarm over the mass arrival from China, as recently denounced and repeated by Hakan Bulgurlu, president of Applia Europe and Beko Europe (75 percent of Whirlpool EMEA), of products also no name or with a retail brand, at very low cost. Polluting appliances are often imported, not in line with European regulations and favored by strong socio-economic dumping.
War beats eco-sustainability
Everything disappears from any future European program in favor of the very heavy commitments for the war against Russia and for the conflicts throughout the Middle East, but, what is worse, the directives remain under accusation. Furthermore, after two years of growth in consumption, 2023 and even more so the first months of 2024 will record strong drops in sales especially home and office technologies. Thus the business associations belonging to Applia Europe (domestic, office and hospitality technologies, turnover over 81 billion euros, approximately 1 million direct and indirect employees, world record for eco-sustainability), have decided to start a road map to provide actionable recommendations to the European Commission, the European Parliament and the 27 national governments during the 2024-2029 legislature. A road map that Paolo Falcioni, general director of Applia Europe, presented at the Applia Italia headquarters, together with Paolo Lioy, President of Applia Italia and Roberto Fogliata, sales director of Gfk Italia.
Applia Europe, fewer multinationals
Why did Applia Europe, as we asked ourselves at the beginning, choose to take the field with very incisive, very strong initiatives? Previously he couldn't do it because - as experts in community lobbying have long told us - two multinationals were obviously in charge, Whirlpool and Electrolux who have never welcomed a strengthening of medium and small European companies, blocking programs and interventions that went in this direction. The law of the market – the strongest always wants to grow – no longer works. Whirlpool is now a regional company which retains only a 25 percent presence and "power" in Europe. electrolux, which had perhaps the largest part of its sales and operations in North America, has now significantly reduced factories, employees and market share, after being prevented from acquiring Ge, left to Haier. Electrolux would also be preparing to negotiate, after having restructured and rationalized its factories and organisation, a very probable sale or joint venture with Midea. Today, with the final closing of the sale of 75 percent of Whirlpool EMEA to Beko Europe (the only truly European multinational), Hakan Bulgurlu (a very strong-willed president) is certainly freer as president of Applia Europe and beyond, to launch roadmaps, events, initiatives with a strong impact, to defend Made in Europe with the very heavy load of employees, production capacities and markets. Few have understood that the fate of the production sites still remaining in Europe depends on these Applia Europe initiatives. And on May 5 the association also meets other global associations, the American Aham Home, the Japanese one and the Chinese one. It will be a good match...
Production, exports and sales down
In summary, first of all, the really serious numbers of a fall in Italian production that is impacting all of Europe. "For the large appliances – reported Paolo Lioy – the year 2023 recorded a negative figure in terms of sell-out volume (-1,8%) but with a +4,1% in value albeit lower than the inflation rate, and production decreasing by 16,4% – which follows the -18% of the previous year – a direct consequence of the decline in all European markets. The Applia Italia sell-in data show a decrease in national sales (-4,6%) and a double-digit drop in exports (-23,3%)”. Purchases of washing machines, medium and medium-high range ones improved in the first months of 2024 after a very difficult 2023, ovens with steam and self-cleaning functions and hoods for which, the declining figure per unit (-2,3% sell-out) is contrasted with growth in value (+8,4%) driven by aspirational plans. However, the cold and dryers are in difficulty.
2024 is off to a bad start
In the first months of 2024 these are the even more negative data: -7,5% sell-in in Italy, -16,9% foreign sales. As for purchases by Italian families, large household appliances recorded, according to Gfk data, a growth in value of 4,1 per cent and a decline of 1,8 in volume, with cooking and washing recording excellent growth in value by 5,4 and 5,3 percent; while built-in, cold and super-cold products show a decline, especially in volumes. “The small household appliance closes 2023 - reports Roberto Fogliata - with a growth in value of +0,3% compared to 2022. The trend in volume is instead negative (-1,4%). Supporting the turnover are the Home sector (+1,1% in value, -2,6% in volume) and Il Kitchen section (+1,2% in value, +2,2% in volume). The Personal sector however, it shows a suffering both in value (-1,8%) and in volume (-4,0%). The value performance of the Home sector is supported by the return to growth in turnover in the Vacuum Cleaner category (+2,3%).
