To alleviate the pessimism about the inevitably negative closure of the sales of the domestic technology in 2023, arrived at the annual CAE, European Works Council, meeting of Whirlpool EMEA of last November 22nd, i GFK sales data of the first nine months concerning the country - Italy - where Whirlpool has nine production sites. Sites and offices that will be part of the new company BEKO Europe.
Gfk: Italian data for the first nine months
Le sales in value they rose by 4,1 percent while the sell in, according to Applia Italia, recorded a -6 percent. The first data is less negative than expected and significantly better than -10/15 percent of Europe where the very heavy effects on Eastern Europe of tensions with Russia and the war in Ukraine weigh heavily. But negative, and by a lot, remains that -6 percent orders to Italian factories of large household appliances. While, as is known, sales on the Italian market are also made up of increasingly important shares of imported equipment because the uncertainty over the outcome of the English antitrust commission, the CMA, on the approval of the Whirlpool-Arçelik joint is favoring Asian competitors. A Brexit-style delay that damages the European appliance industry.
A mini shoot? Yes there is
However, it has been recorded in recent months, in Italy, a slight recovery in sales of the most important segment, that of washing machines and dryers while the cold sector is in sharp decline. The food sector is growing almost imperceptibly small appliances while the 'Consumer electronics suffers a further disastrous collapse, above 31 percent.
By analyzing the data provided with the usual timeliness and reliability by the world's number one market surveyor for technical goods, GFK, some trends emerged from 1. Namely: the growth of Smart devices (home appliances, security, wellness) is higher than the total sales of the category, i.e. even when the market contracts, sales of connected appliances, with high and very high energy efficiency, innovation and more reliable, still increase. For example, smart washing machines in 2019 (January-July) accounted for 2,5% of the total sector, while in 2023 they already represent 25,4% of the total value (the segment boasts the highest growth in sales of Smart models compared to to pre-covid).
But the technical goods market collapses
The market trend of Consumer technology in Italy in the first 9 months of the year (January-September 2023) according to the data provided to FIRSTonline by GFK they recorded a drop in value of 6,2 percent (-6,8 for traditional sales points, -4,6 for one hundred for online) however lower than that of Europe. AND Black Friday, however positive or negative it may turn out to be, will not be able to significantly influence the final balance. TVs, smartphones, home offices, PCs, all segments of consumer electronics are experiencing losses. Home comfort sales were even at a loss -2 percent after a very hot summer which should have rewarded the air conditioning segment. But evidently the sharply falling prices had an impact on the final result.
Less tension for the future of factories?
However, the entire home technology sector appears to be influenced by the long wait for English CMA verdict which remains the most worrying question mark because - as English and Chinese sources pointed out - the market share that the new company emerging from the agreement between Whirlpool and Arçelik it could be an obstacle to free competition and harm consumers since it is higher than 50 percent.
In reality, the data that the competitors have brought forward would not authorize this interpretation since they would include revenues relating to the service and other income. The total – the answer is – would be under 50 percent. As for the future of the joint, the union representatives have received - according to rumors coming from Brussels - reassurances. First of all, the integration between the two companies would take place in sufficient time - at least two years - to avoid the serious difficulties that put the merger between Whirpool and Indesit into crisis.
“Slow integration, immediate profits for everyone”.
The Turkish management's choice to maintain the activities of the two groups were separated for the necessary time it aims to obtain the best sales and profit results. The Turkish management - confesses a German source in Brussels - already has clear ideas on how to proceed, including the names of those who will be part of the board of which Arçelik will obviously be the president-CEO. They will not dismantle the factories, they need them and above all they need the current highly prestigious brands that will become part of the new company. The business plan it will not be based, it seems, on a frenetic cost-cutting policy. They will work on logistics, on adjustments that should not even affect the current staff of the manufacturing and management center in Milan, administration and marketing.
Italian factories are doing well
As for Italian managers, they know the market, retail, products, their value, the opportunity, better than anyone else, as well as being now very small in number. And the rest the escape of the managers from Whirlpool, which began a few years ago, was so to speak greatly facilitated by competitor n.1, Haier who hired many of them.
More calm news than in previous months comes from factories: those of Melano cooking is a jewel whose production will be implemented with innovations and Carinaro, after months of difficulties and stops, is also working with good prospects. Confirming a more relaxed climate comes some important news: Whirlpool returns to the biennial Eurocucina 2024, which will take place at the Rho-Milan Fair, from 16 to 21 April, as part of the Salone del Mobile. A return after the decision not to participate in the previous edition, that of 2022, at the height of the very difficult sales phase.
